Without a doubt, sharing the rent of a St Augustine rental house with a roommate can be an excellent way to save money on rent, utilities, and more. There lies the question about renter’s insurance. Can roommates share a single renter’s insurance policy? To answer that question, we need to know what a renter’s insurance policy does, who it covers, and what the pros and cons are of sharing a policy.
Many landlords require tenants to buy renter’s insurance. The property owner likely has insurance covering the rental property, but that policy does not protect a tenant’s personal property. In the event of a fire or burglary, a renter’s insurance policy will help a renter exchange personal items that were damaged or stolen, and also protects a tenant against liability claims should someone hurt themselves while staying in the property.
For the most part, individual tenants carry their own renter’s insurance policy. Renter’s insurance often only covers you and your personal property; it does not cover other people living in the house. But it is occasionally possible to share renter’s insurance with a roommate. Though state laws differ, in some states, you can add a roommate to a renter’s insurance policy. In most cases, to share a renter’s insurance policy, each person covered by the policy would need to be listed on the lease as well as disclosed on the insurance policy itself.
There are circumstances when sharing a renter’s insurance policy makes sense. If you are sharing a St Augustine rental home with a relative or with a partner in a stable, longstanding relationship, it may be worth it to help reduce the cost.
But just because you can share renter’s insurance doesn’t inevitably mean that you must. If you share a renter’s insurance policy with a roommate, you also share their insurance history. If your roommate files a claim, that claim will reveal on your insurance record too. That may mean increased insurance rates in the future, even if you were not the one who filed the claim.
There are a few other significant things to reflect on before sharing a renter’s insurance policy. The cost of renter’s insurance is frequently based on how expensive your personal possessions 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’s also imperative to think of the fact that roommate arrangements can change quite suddenly. If one roommate wishes to transfer because of a new career opportunity or other reasons, the cost of the renter’s insurance policy may fall completely on the remaining roommate. This can lead to paying far more than you should for that policy.
If you are discerning about sharing a renter’s insurance policy with a roommate, it’s important first to contemplate on your individual situation first. Then, talk to both an insurance agent and your roommate. Having a candid discussion with everyone involved can help you make the right choice.
If you’d like to talk to an expert on the matter, contact Real Property Management Sunstate and ask one of our St Augustine property managers. From owners to tenants, we can help. Contact us online or call us at 877-373-8404 today.
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