Sharing the payment of a Jerome rental house with a roommate can be an excellent 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 respond to this question, we must comprehend what a renter’s insurance policy is, 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 certainly has insurance for the rental property, but that policy does not protect a tenant’s personal property. If a fire or burglary happens, a renter’s insurance policy of the renter will help to replace the personal items that were damaged or stolen, and also protects a tenant against liability claims when someone gets hurt while visiting at the house.
Most of the time, individual tenants carry their own renter’s insurance policy. Renter’s insurance usually covers you and your personal property only, while the other person living in the house is not covered. However, it is sometimes acceptable to share renter’s insurance with a roommate. Even though state laws differ, in other states, you can put an additional roommate on a renter’s insurance policy. In general, to share a renter’s insurance policy, each individual covered by the policy would need to be listed on the lease and also included on the insurance policy itself.
There are times when sharing a renter’s insurance policy makes sense. If you are sharing a Jerome rental home with a relative or with a partner in a stable, longstanding relationship, it might be useful to reduce the cost.
However, just because you can share renter’s insurance doesn’t automatically mean that you have to. 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 indicate on your insurance record also. That may mean increased insurance rates in the future, even though you were not the person who filed the claim.
There are some other relevant things to remember before sharing a renter’s insurance policy. The cost of renter’s insurance also depends on the price of your personal property. 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.
Also, it is essential to note the sudden changes in roommate arrangements. For instance, one roommate has to relocate due to a new career or other opportunities. If that happens, the remaining roommate can entirely bear the cost of the renter’s insurance policy. It will make you pay much more than you should for that policy.
If you think about sharing a renter’s insurance policy with a roommate, it’s necessary first to understand the individual situation. Then, you and your roommate will speak to an insurance agent. You can make the correct decision by communicating frankly with those concerned.
If you’d like to talk to an expert on the matter, contact Real Property Management Magic Valley and ask one of our Jerome property managers. From owners to tenants, we can help. Contact us online or call us at 208-734-4001 today.
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