Sharing the payment of a Blackfoot rental house with a roommate can be an ideal way to save money on rent, utilities, and more. But how about renter’s insurance? Could roommates share a single renter’s insurance policy? To address that issue, we must first know what a renter’s insurance policy offers, who is involved, and what the pros and cons are of sharing a policy.
Many landlords require tenants to buy renter’s insurance. The property owner has insurance that covers rental property, but that policy does not protect a tenant’s personal property. Should a fire or burglary occur, a renter’s insurance policy will help a renter recover personal items that were damaged or stolen, and also protects a tenant against liability claims if someone gets hurt while visiting the house.
Usually, individual tenants have their own renter’s insurance policy. Renter’s insurance normally only covers you and your personal property, while the other person residing in the house is not included. But you may be able to share renter’s insurance with a roommate. Although state laws differ, in some states, you can add an additional roommate to a renter’s insurance policy. Most of the time, to share a renter’s insurance policy, everyone who is covered by the policy would have to be listed on the lease as well as listed on the insurance policy itself.
There are circumstances when sharing a renter’s insurance policy makes sense. If you are sharing a Blackfoot rental home with a relative or with a partner in a stable, longstanding relationship, it may be beneficial to help reduce the cost.
But even though you can share renter’s insurance, it does not necessarily mean that you should. If you share a renter’s insurance policy with a roommate, you will be included in their insurance history as well. Just in case your roommate files a claim, that claim will also exist on your insurance record. That may mean increased insurance rates one day in the future, even though you were not the one who filed the claim.
There are many other crucial things to understand before sharing a renter’s insurance policy. The cost of renter’s insurance is dependent on how expensive your personal belongings 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 significant to keep in mind that roommate arrangements can change instantly. For example, one roommate has to transfer due to a new job prospect or other factors; the expense of the renter’s insurance policy may be fully carried by the remaining roommate. It can result in you spending much more than you should for that policy.
In case you are interested in sharing a renter’s insurance policy with a roommate, it’s necessary to pay attention to the individual situation first. At that time, talk to both an insurance agent and your roommate. Having a serious conversation with everybody involved will help you to make the right decision.
If you’d like to talk to an expert on the matter, contact Real Property Management Pocatello and ask one of our Blackfoot property managers. From owners to tenants, we can help. Contact us online or call us at 208-234-1000 today.
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