Can You Share Renters Insurance With Roommates? - NerdWallet (2024)

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Sharing renters insurance with a roommate can save you both a few bucks in the short run, but it's not always a good idea. While many companies will allow you to add a roommate to your policy, you’ll want to weigh the pros and cons of joint renters insurance first.

The risks of sharing renters insurance with roommates

Many insurance companies offer renters insurance to roommates, but there’s no guarantee that sharing a policy will save you money in the long run.

Say you’re sharing a policy and your roommate files a claim. Even if you had nothing to do with the incident, that claim will also go on your insurance record and stay there for up to seven years. Having a claim on your record could raise your future premiums by 20% or more, according to NerdWallet’s rate analysis.

Even among the most amicable roommates, problems can arise. For example, the total value of your combined belongings helps determine the cost of insurance. But what if one roommate has more expensive things than the other, driving up the cost of the policy? A 50-50 split on the premium wouldn’t seem fair.

In addition, roommate situations can be fluid as career or other opportunities arise. A roommate departing before the end of your policy term means you’ll likely have to reapply for insurance or update your existing policy.

The average cost of renters insurance is $148 a year, or about $12 a month, according to NerdWallet’s rate analysis. Splitting that cost with a roommate would save you only a few dollars each month, and it might not be worth the risks of sharing a policy.

"If you’re someone who moves every year or two, you might want to just have your own policy," says Janet Ruiz, director of strategic communication at the Insurance Information Institute. "That way if you move or they move, you don’t have to redo your insurance policy."

However, if you’re in a committed relationship with your roommate and you co-own most furniture and other belongings, sharing a policy likely makes more sense, Ruiz says.

» MORE: The best renters insurance companies

Tips for sharing renters insurance with a roommate

If you decide to buy a renters insurance policy with a roommate, here’s what to do first.

Evaluate your roommate. Are they a stranger you just met on Craigslist or someone you’ve known for years? Can you trust them to pay their bills on time and split claims checks equitably? (If they fail to pay your joint renters insurance bill, you could find yourself uninsured.)

Think carefully before linking your finances and insurance history to someone else’s by sharing a renters policy.

Take stock of what you own. Consider taking a video inventory of everyone’s belongings, recording each room and the contents of all closets and drawers. This will help you and your roommate calculate the value of your stuff and determine how much coverage you need. In addition, having a home inventory is essential to getting all of the claim money you’re entitled to if disaster strikes.

» MORE: What does renters insurance cover?

Have an honest discussion with your roommate. Talk about how much coverage you want, how you’ll divide the bill and who’ll be responsible for making the payments. Another question to consider if one of you has more possessions than the other: If a fire destroyed your home and everything inside, how would claim money be divided?

Talk to an agent. An insurance agent can assess how much coverage you need and talk you through the pros and cons of sharing insurance with a roommate.

Ask about bundling. Whether you share a policy or not, it’s always smart to ask an agent or insurance company about discounts. Adding renters insurance to an existing auto policy can be surprisingly affordable, thanks to bundling discounts. For example, the savings on your car insurance could be enough to minimize or even negate the cost of adding a renters policy.

» MORE: Personal liability renters insurance: What you need to know

Frequently asked questions

Does each roommate need renters insurance?

Renters insurance isn’t mandated by law, but some landlords require tenants to have a policy before signing the lease. While you and your roommate might be able to meet your landlord’s requirement by sharing the same renters insurance, getting your own policy may be a better idea. Learn more about how renters insurance works.

Does renters insurance cover all roommates?

Your renters insurance generally won’t cover your roommates’ things unless they’re related to you or their names are listed on your policy. Unrelated roommates should generally buy their own renters insurance.

Where can my roommate and I get affordable renters insurance?

Shop around for renters insurance quotes from several companies to make sure you’re getting the best possible rate. Start with NerdWallet’s list of the best cheap renters insurance.

Do I need renters insurance if my roommate and I live in a college dorm?

Maybe not. That’s because your parents’ homeowners or renters insurance policy might include coverage for your personal belongings if you’re living on campus. If not, a renters policy might be worth it.

Can You Share Renters Insurance With Roommates? - NerdWallet (2024)

FAQs

Can I share renters insurance with my roommate? ›

Your renters insurance generally won't cover your roommates' things unless they're related to you or their names are listed on your policy. Unrelated roommates should generally buy their own renters insurance.

Is it okay to have two renters insurance policies? ›

In a nutshell, the answer to 'can you have two renters insurance policies' is yes. It helps in providing additional coverage and reducing the risk of denied claims. However, there are risks, such as overpaying for coverage, conflicting coverage, and the temptation to commit insurance fraud.

How to add roommate to renters insurance lemonade? ›

Some insurance companies—including Lemonade! —only allow you to add additional people to your policy if you're related to the particular person (meaning they're your brother, mother, spouse, or so on). While you may love and adore your non-related roommates, you won't be able to share renters insurance in this case.

What options are there when choosing this renters insurance? ›

Typically, renters insurance provides four types of coverage: personal property coverage, renters liability insurance, guest medical expenses, and additional living expenses.

Do all roommates need separate renters insurance? ›

Does each roommate need renters insurance? Many insurance companies will require roommates to have their own separate renters insurance policy rather than allowing roommates to be on a policy together. If your landlord doesn't mandate renters insurance, you and your roommates aren't required to carry a policy.

Can I share renters insurance with my girlfriend? ›

Can significant others share renters insurance? Most states allow two unrelated people to share a renters insurance policy if they live in the same rental home. Many renters insurance companies allow policy sharing as well.

Can I add my roommate to my insurance? ›

Someone who lives with you is a “roommate”. Regardless of their status, if they use your car occasionally, you should add them to your policy as an additional insured. If you fail to do so, any accident he has will be covered, but you'll have to answer a lot of tough questions following the loss.

Does renters insurance cover your partner? ›

Your household insurance policy (aka, your renters or homeowners policy) covers losses suffered by everyone living in your home and related to you by marriage, blood, or adoption. That means your children, husband, wife, partner, parents, etc. … you get it.

What company has the cheapest renters insurance? ›

Which company offers the cheapest renters insurance? According to our research, State Farm and Toggle tend to offer the cheapest renters insurance policies at $10.50 and $12.59 per month, which is about 20% less the national average.

What are the three ways that renters insurance protects a renter? ›

Renters insurance policies are helpful in three ways: repairing or replacing your belongings if damaged, paying for living expenses if you're displaced, and covering damages to others.

Why do people choose not to have renters insurance? ›

Some Renters Feel Their Property is Insured by the Landlord

Your landlord may have property insurance to protect the building structure and common areas, but this insurance offers no protection for your furniture and other belongings inside your rented property.

Which of the following is not covered by renter's insurance? ›

Standard renters insurance will likely only cover situations listed in your policy, like fire, theft, and vandalism. Natural disasters, like floods and earthquakes, are generally excluded, though you may be able to add extra protection for an additional cost.

Is it a good idea to add your roommate on to your renters insurance as you will save money? ›

One way to save money on renters insurance is by sharing a policy with your roommates. However, not all insurance companies allow sharing among unrelated individuals, though, so check with your agent before choosing a policy. Clear communication and trust between all parties are vital to a successful sharing agreement.

Does my renters insurance cover my partner? ›

Your household insurance policy (aka, your renters or homeowners policy) covers losses suffered by everyone living in your home and related to you by marriage, blood, or adoption. That means your children, husband, wife, partner, parents, etc. … you get it.

Can I take out a life insurance policy on my roommate? ›

Only if you have their consent and you have confirmed insurable interest in that person. If those two requirements are not met, you may not buy life insurance on another person. In this guide, you'll learn how to buy life insurance on someone else and when it makes sense for someone else to own your policy.

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