Sharing the cost of a Silver Lake rental house with a roommate can be an effective way to save money on rent, utilities, and more. But what about renter’s insurance? Can roommates share a single renter’s insurance policy? To answer that question, we need to make clear first what a renter’s insurance policy covers, who it includes, and what the pros and cons are of sharing a policy.
Many landlords require tenants to buy renter’s insurance. The property owner probably has insurance covering the rental property, but that policy does not protect a tenant’s personal property. With regards to fire or burglary, a renter’s insurance policy will help a renter get back personal items that were damaged or stolen, and also protects a tenant against liability claims if somebody hurt themselves while visiting the house.
In several instances, individual tenants provide their own renter’s insurance policy. Renter’s insurance regularly only covers you and your personal property; the other person living in the house is not covered. But for a particular situation, it is possible to share renter’s insurance with a roommate. Even though state laws differ, in other states, you can add a roommate to a renter’s insurance policy. For some scenarios, to share a renter’s insurance policy, each individual covered by the policy will have to be listed on the lease and also listed on the insurance policy itself.
There are situations when sharing a renter’s insurance policy makes sense. When you are sharing a Silver Lake rental home with a relative or with a partner in a stable, longstanding relationship, it may be worth it to help reduce the cost.
Even though you can share renter’s insurance, it doesn’t automatically mean that you should. If you share a renter’s insurance policy with a roommate, you also share their insurance history. Should your roommate file a claim, that claim will also show up on your insurance record. It could mean increased insurance rates in the coming years, regardless if you were not the one who filed the claim.
There are lots of other significant things to remember once you share the renter’s insurance policy. The cost of renter’s insurance mostly relies upon how valuable your personal belongings are. If one roommate has far more valuable things than the other, then the roommate with the budget furniture will end up paying more than they should in a 50/50 split.
It is also imperative to take into consideration that roommate arrangements can change in an instant. If one roommate needs to leave due to another work opportunity or other individual reasons, the expense of the renter’s insurance policy will be shouldered entirely by the remaining roommate. That will mean spending much more than you should for that policy.
In case you are considering sharing a renter’s insurance policy with a roommate, it’s crucial to understand the individual situation first. After that, talk to both an insurance agent and your roommate. Having a transparent discussion with each one of those concerned will assist you in making the right decision.
If you’d like to talk to an expert on the matter, contact Real Property Management Vision and ask one of our Silver Lake property managers. From owners to tenants, we can help. Contact us online or call us at 818-233-8789 today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
