Homeowner's insurance covers all of the residents inside of a property. So what about renters insurance? If you have roommates, you may be wondering whether you have to maintain individual renters insurance policies, or if you can roll your coverage into a single policy. Here's what you need to know.
Can You Share Renters Insurance?
Most companies are more than willing to let you share your renters insurance policy. You just need to list yourself and your roommate(s) on the documents when you fill them out. The policy may be more expensive than for a single individual, but when split among all of you, it will usually be much cheaper. It can also be more convenient; rather than having to juggle an independent policy for everyone, you'll have a single point of contact for any issue that occurs in your household.
However, you do need to make sure the coverage will protect all of you. You may know how much your stuff will cost to replace, but you also need to calculate in all of the possessions of your roommates, as well.
What's the Downside to Sharing Renters Insurance?
If you have a single policy, your entire policy is going to be impacted if your roommate decides to make a claim. Sometimes this can increase your policy amounts. If enough claims are filed, your insurance can even be canceled and you may need to find another insurance provider.
Sharing renters insurance also means you'll lose coverage entirely if the full amount isn't paid. If your roommates don't pay the policy, you'll have to cover it yourself to maintain coverage. Finally, it can also be difficult to determine exactly who owes what when it comes to renters insurance. If you have a dog that's traditionally considered a "dangerous dog breed," your insurance could be higher, but your roommate may also have more expensive items to cover, which could also make the rate higher.
Ultimately, you can save a lot of money by bundling your insurance policy -- but you need to have a good relationship with your roommate to do so. If you anticipate any problems in payment or any problems with procuring coverage, a separate policy is better. For more information about the benefits and disadvantages of shared renters policies, contact the insurance experts at Value Plus Insurance.