Sharing the cost of an Ames rental house with a roommate can be a smart way to save money on rent, utilities, and more. But what about renter’s insurance? Can roommates share a single renter’s insurance policy? To respond to this inquiry, we must understand what a renter’s insurance policy is doing, who it incorporates, and what the pros and cons are of sharing a policy.
Many landlords require tenants to buy renter’s insurance. The property owner certainly has insurance protecting the rental property, but that policy does not protect a tenant’s personal property. When a fire or burglary happens, a renter’s insurance policy of the renter will seek to shoulder the personal items that were damaged or stolen, and also protects a tenant against liability claims if someone injures themselves during the visit at the house.
Much of the time, individual tenants carry their own renter’s insurance policy. Renter’s insurance always covers you and your personal property only, while the other individual living in the house does not. However, it is often appropriate to share renter’s insurance with a roommate. Even though state laws differ, in other states, you can add a roommate to a renter’s insurance policy. In general, to share a renter’s insurance policy, every individual covered by the policy would need to be listed on the lease and also listed on the insurance policy itself.
There are times when sharing a renter’s insurance policy makes sense. If you are sharing an Ames rental home with a relative or with a partner in a stable, longstanding relationship, it might be worth it to reduce the cost.
However, just because you can share renter’s insurance doesn’t necessarily say that you’re going to. If you share a renter’s insurance policy with a roommate, you also share their insurance history. If your roommate files a claim, that claim will appear on your insurance record also. That may mean increased insurance rates someday, even though you were not the one who filed the claim.
There are a few other significant things to remember before sharing a renter’s insurance policy. The cost of renter’s insurance always relies upon the value of your personal belongings. 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.
Additionally, it is essential to take note of the unexpected changes in roommate arrangements. For instance, one roommate has to move because of a new job offer or other purposes; when that happens, the remaining roommate will entirely carry the expenses of the renter’s insurance policy. It will make you spend much more than you should for that policy.
In case you’d prefer to share a renter’s insurance policy with a roommate, it’s necessary to comprehend the individual situation first. At that point, you and your roommate will talk to an insurance agent. You will make the correct decision by making a genuine conversation to those concerned. If you’d like to talk to an expert on the matter, contact Real Property Management Iowa and ask one of our Ames property managers. From owners to tenants, we can help. Contact us online or call us at 515-251-8200 today.