Renters Insurance with Roommates - QuoteWizard (2024)

Key Takeaways

  • Some companies do not allow non-related roommates to share a policy.
  • If things go wrong, a shared policy may cost you more in the long run than the amount you may save by splitting your policy’s costs with roommates.
  • Renters insurance usually only covers your roommates if they are named on your policy

In this article

  • When renters insurance covers roommates
  • Risks of adding roommates to your renters insurance
  • Why each roommate should get their own renters insurance
  • How to add a roommate to your renters insurance

Does renters insurance cover roommates?

Renters insurance generally only covers your roommates if they are named on your policy, although coverage sometimes automatically extends to your spouse, children and/or other family members who live with you.

While some companies allow you to add non-related family members to your policy, many have restrictions on who you can add. For example, Lemonade and Toggle only allow you to add a non-relative to your policy if they are your significant other.

Although other companies are more permissive, it’s important to consider the potential risks of adding a roommate to your renters insurance before you do so.

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Why is it risky to add roommates to my renters insurance?

The biggest risk of adding roommates to your renters insurance is that your insurance record may be damaged if your roommate files a claim.

Once anyone on your policy files a claim, the incident is added to your file in the Comprehensive Loss Underwriting Exchange (CLUE), a database insurance companies use to check your insurance history. After you file a claim, you will also most likely receive a check that’s made out to everyone on the renters insurance policy.

A prior claim in your CLUE report typically impacts your future insurance rates for three to five years, sometimes longer. If you have too many claims, your insurance company may decline to renew your coverage at the end of a policy period.

Your roommate may be your bestie. But do you want to risk getting hit with higher insurance rates if their belongings are stolen from their car, they start a kitchen fire while vacationing in an Airbnb or they file a claim for any other reason?

Other risks of adding a roommate to your renters insurance include:

  • Higher rates: If your roommate has bad credit or prior insurance claims, the insurance company may consider them riskier than you to insure. This, in turn, could result in a significant rate increase.
  • Not enough coverage: If the combined value of the belongings you and your roommate own exceed your policy’s personal property, or contents, limit, you may not have enough coverage for all your possessions.
  • Late payments: If your roommate is responsible for paying the insurance bill and forgets to do so, a late payment may appear on your insurance record and/or credit history.

Does each roommate need renters insurance?

Although renters insurance is generally not required by law, many landlords require it for tenants, including any roommates listed on a lease.

When landlords require renters insurance, they are primarily interested in making sure each tenant has enough liability insurance to cover any damage they may cause to the property. Most landlords don’t care whether your liability coverage is in a combined policy or individual policies, although some may include more specific requirements in a rental agreement.

If you’re not listed on a lease or your landlord does not require renters insurance, you and each non-related roommate are typically better off with your own renters insurance, unless you are involved in a committed relationship. Here are the main reasons to consider separate policies:

  • Renters insurance is relatively inexpensive, with an average cost of about $18 a month.
  • When you get your own renters insurance, you can customize your coverage to meet your specific individual needs, which may be different from those of your roommates.
  • Certain renters insurance protections follow you away from home. For example, your belongings are typically covered, albeit on a limited basis, in your car or in a storage unit. Renters liability generally covers injuries or property damage you cause anywhere in the U.S. and Canada, and some companies offer worldwide liability protection.

Renters insurance for college students

The protections in a parent’s home or renters insurance policy typically extend to children living in a dormitory while attending college, often up to age 25. However, college students living off campus typically need their own renters insurance.

How do I add my roommate to my renters insurance?

If you have considered all the risks and still want to add your roommates to your renters insurance, here are key tips for getting the best coverage at the best price.

Shop around: You may have to do some legwork to find a company that allows you to add a non-related roommate to your renters insurance. Since each company uses a different formula to calculate rates, it’s best to compare quotes from multiple insurance companies anytime you shop.

Document the value of all your possessions: The best way to determine how much personal property coverage you need for a shared policy is to create an itemized list showing the value of each person’s possessions, and then add up their combined value.

Create a personal property inventory: You can turn your itemized list into your home inventory by adding key details about each item, including its purchase date, location and price. If you ever need to file a claim, having an updated home inventory handy, along with photos of your items and receipts, can expedite your insurance payment.

Agree on a liability limit: Renters insurance often comes with a default liability limit of $100,000, but this amount is not always enough. Consider a higher liability limit if anyone on your policy has a net worth that exceeds this amount and/or anyone earns a high salary.

Choose a deductible wisely: You’re generally better off choosing the highest deductible everyone on the policy can reasonably afford. Higher deductibles lower your rate, but they also require you to spend more out of your own pocket for property losses before insurance funds kick in.

Understand each other’s responsibilities: Set up a payment schedule that allows each person on the policy to pay their share of premium in a timely manner. It’s also generally best to agree to avoid filing claims for inexpensive losses, because avoiding claims helps you keep your rates low.

Frequently asked questions

Adding your roommate to your policy may be cheaper, but renters insurance is one of the most affordable types of insurance around. According to our study, the average renters insurance premium in the U.S. is just $214 a year. This means that a shared policy between two roommates would only save each roommate about $100 a year.

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Renters Insurance with Roommates - QuoteWizard (2024)

FAQs

Does my renters insurance cover my roommates? ›

If you're moving in with a friend, you may be wondering how renters insurance with roommates works. Unless your roommate's name is listed on your policy, they won't be covered under your renters insurance.

Does renters insurance cover both people? ›

No. If your roommate has renters insurance, she has insurance for her—not you. While some insurers do offer one policy for multiple roommates, this isn't a good idea. You would have to specifically add them to the 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.

Is it better to share renters insurance? ›

Some renters insurance companies will allow for roommates to share a policy, but that's not always the best option. You may be better off getting your own policy. Renters insurance costs about $14 per month for a policy with $15,000 of personal property coverage.

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.

Can my boyfriend be on my renters insurance? ›

Roommates, boyfriends, and girlfriends are different. They would not be covered on the policy unless they are listed as a second named insured. Some companies will allow a non-relative to be listed as a second named insured on a renter's insurance policy, but not every company does.

Can I add my roommate to my Lemonade renters insurance? ›

If you're already insured, your next question may be if it's possible to add your roommate to your existing policy. 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).

Is Lemonade renters insurance good? ›

After reviewing more than 20 of the largest renters insurance providers in the country, our team rated Lemonade 4.6 out of 5 stars based on our in-depth methodology.

Do I need to add my spouse to renters insurance? ›

Does Renters Insurance Cover My Spouse or Significant Other? If you and your significant other live together — married or not — getting protection for the stuff you own together, along with liability coverage, is easy. Simply list both of your names on a policy, and your insurance can take it from there.

Does it matter whose name is on the renters insurance? ›

It protects you if someone is injured in your rented space and covers legal and medical expenses. When it comes to the name on the policy, it's essential to understand that the primary policyholder and the additional named insured are protected under this coverage.

Do I need to add my boyfriend to my renters insurance? ›

No. Not unless you purchase an endorsement for Other Members coverage (see below). This person would not have property coverage or personal liability coverage.

Why is renters insurance so expensive? ›

Insurance is all about risk, so customers that live in areas with higher risks of claims usually have to pay more for coverage. Some location-based factors that impact renters insurance rates can include: The rate of crimes, especially theft, in your ZIP code.

Does renters insurance make sense? ›

A renter's insurance policy protects against losses to your personal property, including clothes, jewelry, luggage, computers, furniture, and electronics. 3 Even if you don't own much, it can quickly add up to a lot more than you realize; and a lot more than you'd want to pay to replace everything.

How important is renters insurance? ›

Renters insurance can help you repair or replace property after loss due to many types of damage or theft. It can also provide coverage for an accident at your residence. Policies usually have very affordable annual premiums. Note that your landlord's property insurance doesn't cover your belongings.

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.

Can roommates be on the same car insurance? ›

If both cars are kept at the same address overnight, you can share a policy, even if you drive different vehicles or don't share a last name. Adding a roommate to your auto insurance will raise the cost of your individual policy, but it could be lower than the combined cost of two separate policies.

Can you take out life insurance on a roommate? ›

While you can't take a life insurance policy out on anyone, you can get a policy for someone else if you have an insurable interest. If you're interested in getting life insurance, Aflac offers term and whole life insurance plans for the people you care about most.

How do I add someone to renters insurance USAA? ›

Your renters policy automatically covers family members who live with you, including your spouse and children. Roommates need to buy their own renters insurance. If you need to make a change to your policy, call us at 800-531-USAA (8722)800-531-USAA (8722).

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