When you live with roommates, it’s common to split rent and utilities. Some roommates even go half-and-half on streaming services and groceries, if it makes life more affordable and easier to manage. Renters’ insurance, on the other hand, is the one thing you may want for yourself.
Even though roommates can typically share renters’ insurance, it doesn’t necessarily mean that you should.
The benefit of getting a separate tenant insurance policy from your roommates is that you protect yourself from being financially tied to their claims history, disputes, or missed payments. On top of that, it ensures your coverage limits are entirely your own. That way, if your roommate is prone to risky hobbies or has a lot of belongings, your protection won’t be diluted.
In this article, you’ll learn more about roommates and insurance, so you can weigh the risks and benefits of sharing a policy versus having your own, and ultimately, pick the solution that puts your best interests first.
Does renters’ insurance cover my roommates?
No, unless you and your roommate are related or married, they are not typically automatically covered by your renters insurance policy. That means if your roommate is your friend, colleague, boyfriend/girlfriend, or even fiancé, they won’t be covered under your policy and will need their own renters insurance.
Depending on your provider, you may be allowed to add a roommate to your renters’ insurance policy, though don’t be surprised if only one non-relative can be added. Also, expect how much you pay to change, since you’ll likely need a higher personal belongings coverage limit to reflect the combined value of your and your roommate’s stuff.
5 reasons for roommates to have their own insurance
Every tenant should have renters’ insurance, especially since some landlords require it. While sharing a policy might seem easy and a good way to save money at first glance, there are some very real reasons why it’s usually best for roommates to have their own insurance, including:
- You’re at the mercy of your roommate for payments
- You’re legally responsible for the full premium
- Your roommates’ claims go on your insurance record
- Coverage limits get split
- Trusting roommates might backfire
You’re at the mercy of your roommate for payments
If you choose to split the bill on renters’ insurance, you’re going to have to manage payments from your roommates. Think about whether or not this is worth the headache of potentially chasing down payments and the risk of a roommate who doesn’t pay on time. This can complicate the process and create conflict that could otherwise be avoided.
You’re legally responsible for the full premium
Even more importantly, as the primary insured, you’re the one the insurer holds responsible for the entire premium, regardless of whether your roommate pays their share. So if they miss a payment, you’ll be left covering the full cost. Not only can this be a financial strain, especially if it happens month after month, but it can also quickly breed resentment and damage your relationship.
Roommates’ claims go on your insurance record
If your roommate makes a claim, it will be recorded on your insurance history—even if you weren’t directly involved. This can lead to higher future premiums and make it more difficult to find affordable coverage. Worse, if your roommate files a questionable or fraudulent claim, it could cause serious problems for you later on.
Coverage limits get split
Renters’ insurance has limits on how much it will pay for personal property. When you share a policy, that limit covers both of you. Consider that if your roommate has a lot of belongings or owns valuable items, such as musical instruments, electronics, or sports equipment, those limits might not be enough for two people. The key here is that you don’t want to risk becoming underinsured.
Trusting roommates might backfire
Sharing renters’ insurance requires a great deal of trust. You’re putting your insurance record in someone else’s hands. Your roommate could cancel the policy out of the blue, change coverage without telling you, or even make a false claim. If this makes you nervous, it might be a sign to just get your own renters’ insurance.
Next steps
While it’s possible to share a policy, separate renters insurance gives you full control over your coverage, protects your insurance record, and keeps things simple if you ever move out.
Plus, renters’ insurance is often far more affordable than many people think, starting at just $8 a month with YouSet, making it a cost-effective way to ensure everyone’s coverage and avoid unwanted tension.
