If you rent your home, having renters insurance is a no-brainer: It protects against loss and damage to your belongings and usually costs less per month than a fast-food order. But what about when you add a roommate to the mix? How does that affect your policy and coverage?
Here are answers to some of the most common insurance questions in a roommate situation.
Can I share a policy with a roommate?
California Casualty does not allow roommates to purchase a policy together. However, we offer a low or no cost endorsem*nt, “Other Members of Household” that the insured can add to cover the roommate. This endorsem*nt extends coverage for unrelated household members who live and maintain contents at the insured location, like a review. The maximum number of unrelated roommates that can be added to a policy is two.
How do I add a roommate to my policy?
California Casualty does not require both roommate’s names to appear on the lease. We only need the roommate’s name and the estimated value of property and increase the coverage amount if it is not adequate enough to cover the roommate’s personal belongings. You’ll want to go through the policy in detail with your insurance agent and roommate to make sure all the coverage, liability, and policy details are clear, understood, and agreeable to all parties.
What will the policy cover?
All policies have coverage limits. Typically, in a shared policy situation, the coverage limit doesn’t increase with the addition of a roommate but gets split between you. You’ll need to decide if the coverage limit is adequate given the value of your and your roommate’s possessions combined. Policies typically also cover personal liability, which helps cover the costs due to accidental property damage and accidental bodily injury.
What if my roommate moves out?
You’ll need to update your policy as soon as there are any changes to your roommate situation. If your roommate moves out, you’ll need to make yourself the sole policyholder asap. If you decide to bring in another roommate (and you both want to share a policy), you’d need to go through the policy update process again.
Further considerations
If you’re considering sharing a policy but are just not sure, think about the following.
- Take stock of what you own. If your possessions are worth much more than your roommate’s, it may not be worth sharing a policy.
- Check for potential cost savings. Working with your insurance agent, price out a shared policy versus a single policy. In some cases, a solo policy ends up being more affordable while offering more coverage.
- Choose your roomie well! The secret to a good shared policy situation is a strong underlying relationship where you and your roommate are on good terms, can have honest conversations, and trust each other.
Deciding whether or not to share a policy is a very personal and individual choice – only you can know if it’s the best choice for you. But in the end, whether you decide for solo or shared, the most important decision is that you get protection as a renter. Check out the top 5 reasons to get renters insurance here.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 orwww.calcas.com.
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FAQs
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.
What are two reasons people typically do not get renters insurance? ›
- Renters insurance isn't worth it.
- Renters insurance doesn't cover that much.
- Your landlord will cover any damage.
- You roommate's renters insurance policy will cover you.
- You're not on the lease so you can't get a renters insurance policy.
- Your personal property isn't that expensive.
- Renters insurance is too expensive.
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.
Is a good idea to add your roommate on to your renters insurance as you will save money? ›
Splitting Costs and Sharing Coverage
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.
How many people can share renters insurance? ›
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.
What are the negatives of renters insurance? ›
Additional Expense
One of the main cons of getting renters insurance is that it can be an added expense for tenants already paying rent and other living expenses. This can be a deterrent for some tenants who may feel that they cannot afford the additional cost of a renters insurance policy.
Is renters insurance actually worth it? ›
Renters insurance coverage is almost always worth it. It is much more affordable than other policies, including home or auto insurance, and provides valuable financial protection. Even if you can save enough money to cover unexpected loss, renters insurance may be worthwhile.
Why would a renters insurance claim be denied? ›
The Landlord Is Responsible for the Loss
In instances in which your landlord is responsible for your damage and loss, your claim may be denied. For instance, if your landlord failed to repair faulty wiring which in turn caused a fire which damaged to your couch, then your landlord may be liable for the damage incurred.
Why is Lemonade insurance so cheap? ›
Lemonade is an affordable insurance provider partially because it does not maintain a network of in-person locations like some of its competitors. It also uses largely AI-based underwriting processes, which can lead to savings on operations on staffing costs.
You can take out as many as you want; payment of property losses will be shared among the companies in the same ratio as the amount of insurance provided by each bears to the total amount. But only ONE company will provide the liability coverage.
Is Lemonade a trusted insurance company? ›
We at the Guides Home Team found that Lemonade stands out as one of the best homeowners insurance companies in the industry for its unique claim-filing process that uses a mobile app with artificial intelligence (AI) technology to process information and make payouts to homeowners seamlessly and hassle-free.
Does my renters insurance cover 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 better to share renters insurance? ›
If you share a renters insurance policy, it may not protect you from your roommate. A shared policy may not be your best bet, according to personal finance publisher Kiplinger, when an accident or a dispute occurs and you end up needing legal protection from your roommate.
Does my boyfriend need to be on my renters insurance? ›
We generally only recommend your partner be added as a co-owner to your home or tenant insurance policy if the two of you have entered into a long-term relationship such as marriage or common-law. Your partner would need to be added as a co-owner of your home or on your lease agreement.
Should I have renters insurance if I live in a house that my boyfriend owns? ›
Your personal insurance policy (renters insurance) will give coverage for your property and personal belongings in the case of a disaster, a theft, a fire, or another terrible incident, regardless of whether you're moving in with a romantic partner, a friend, or a roommate. This also applies to liability insurance.
Does renters insurance cover a spouse? ›
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.
Does USAA renters insurance cover roommates? ›
Many factors go into calculating premiums, such as an increase in the number of natural disasters or even the number of claims filed. How does my renters insurance work with roommates? Your renters policy won't cover roommates who aren't family. Your roommates would need their own policy to protect their stuff.
