Sharing the expense of a Hopkins rental house with a roommate could be a great way to save money on rent, utilities, and more. But, what about renter’s insurance? Would roommates share a single renter’s insurance policy? To answer this question, we need to understand what a renter’s insurance policy does, who it covers, and what the pros and cons are of sharing a policy.
Many landlords require tenants to buy renter’s insurance. The property owner likely has insurance covering the rental property, but that policy does not protect a tenant’s personal property. On the off chance a fire or burglary occurs, a renter’s insurance policy will help a renter to replace personal items that were damaged or stolen, and also protects a tenant against liability claims if somebody hurts themselves while visiting the residence.
On many occasions, individual tenants buy their own renter’s insurance policy. Renter’s insurance typically only covers you and your personal property; it does not include other people living in the house. But it may be possible to share renter’s insurance with a roommate. Although state laws differ, in some states, you can add a roommate to a renter’s insurance policy. Usually, to share a renter’s insurance policy, each person covered by the policy will have to be listed on the lease as well as on the insurance policy itself.
There are situations when sharing a renter’s insurance policy makes sense. If you are sharing a Hopkins rental home with a relative or with a partner in a stable, longstanding relationship, it could be useful to reduce the cost.
But even though you can split renter’s insurance, it doesn’t automatically mean that you should. If you share a renter’s insurance policy with a roommate, you also share their insurance history. The claim will also exist on your insurance record if your roommate files a claim. That may mean increased insurance rates someday, even when you weren’t the one who filed the claim.
Before sharing a renter’s insurance policy, there are a few other crucial things to consider. The cost of renter’s insurance is always based on the value of your 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.
Furthermore, it is essential to keep in mind that roommate arrangements can change unexpectedly. In case your roommate needs to transfer due to a new work opportunity or other reasons, the expenses of the renter’s insurance policy may be left entirely on the remaining roommate. It can add much more to your expenses than you need for that policy.
If you are considering sharing a renter’s insurance policy with a roommate, it is necessary to understand the individual situation first. Then, talk to both an insurance agent and your roommate. You will make the right decision by thoroughly discussing with everyone involved.
If you’d like to talk to an expert on the matter, contact Real Property Management Viking and ask one of our Hopkins property managers. From owners to tenants, we can help. Contact us online or call us at 612-442-8850 today.
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