If you’re a renter, you need to consider renters insurance. Renters insurance can help with the costs if your stuff is lost or damaged. There is no one-size-fits all renters insurance policy so it’s smart to calculate how much it would cost to replace all of your belongings in the event of a total loss. If you have a roommate (or two, or three), this can be a bit trickier.
First things first, you need to be on good terms with your roommate(s). Sharing a renters insurance policy will require you to work closely with your roommates to decide how much coverage you need and how you will handle a claim if it were to happen. If one of you moves out, you will both need to approve removing a name and if a check is ever cashed, it is likely all named on the policy will be named on the check, which means you will all have to be present to cash it at a bank (or be willing to sign it over).
It may seem like common sense, but if you want a renters policy to cover your belongings, you will need to be named on the policy. If you move into an apartment with someone who already has a renters policy, your stuff will not be covered if you need to make a claim. Before getting added to the policy, contact the insurance company to ensure that two or more unrelated adults can be named on the same policy. If not, you will want to get your own coverage.
Make sure you are considering the cost of your belongings plus any roommates before setting the amount your policy covers. For example, if your roommate has $10,000 worth of belongings and you have $20,000 worth, make sure your policy covers $30,000. When calculating how much everyone who is named on the policy should pay, consider splitting the premium by coverage amount. Using the same example as above, you would be paying 2/3 or the premium and your roommate would pay 1/3.
Another thing to consider before sharing a policy is that you will also be sharing insurance histories. Depending on your independent insurance histories, when you share a policy, any claims your roommate has made in the past could impact the rate on your policy. This works conversely, if your roommate’s belongings are stolen and he or she makes a claim, you are also responsible for that claim even though your belongings are still intact.
Whether you decide to purchase a renters insurance policy with your roommate(s) or alone, Safe Auto Group Agency can help. Get a free quote for the right renters insurance policy for the right price and cover your belongings for pennies a day.