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What To Know When Deciding On A Renters Insurance Policy With Your Roommate

Editor’s note: This is a guest post by Brooke Niemeyer, Partnerships Manager at Policygenius.

You’ve found the perfect new place to rent and now you’re shopping around for Renters Insurance. After all, you want to protect all the things in your great new place just in case something happens. But what do you do when you are sharing this perfect space with a roommate? Can (and should) you share that policy, too?

You absolutely can both be on the same Renters Insurance policy. But you can also order a five-pound bag of gummy bears on Amazon. Just because you can do something doesn’t mean you should. Here’s why.

Renters insurance isn’t really that pricey

Let’s get this one out of the way — as it’s a pretty common concern — If you’re considering sharing the policy to save money, know that renters insurance is one of the cheapest insurance policies out there. We’re talking an average of $20 or less per month, depending on your situation.

Part of what determines the cost of your insurance is the value of your belongings (the other primary factor is your location). So think about this: What if one roommate has more valuable or expensive items than the other, ultimately boosting the monthly payment for the policy? That makes the split cost a bit unfair and not really worthwhile. And, even if you’re both on par with possessions …

Complications can arise

Say you do decide to get a shared renters insurance policy. If one of you files a claim because something was damaged or stolen, and the insurance company approves the claim, the check will include both of your names. This can get messy when it comes time to cash that check. Moreover, past renters insurance claims can affect future renters insurance premiums. (Just like a car accident can drive up your car insurance rates.) So if your roommate’s stuff gets damaged in a mishap, but yours does not, you’ll still have a claim on your record.

And, thinking ahead, if one of you moves out, you’ll have to go through the hassle of updating the names on the policy. Otherwise, if there’s a claim once that person is gone, the check will again come with both names on it and we’re back to things getting complicated.

Basically, sharing a policy won’t save you much time or money in the long run and can just get really, really messy.

No matter what you decide to do, it’s important to chat about renters insurance with your roommate so you’re on the same page from the get go. To help you have that conversation, here are a few other things you should know about renters insurance.

Your apartment itself isn’t covered

That’s right — renters insurance puts a bubble of protection around the stuff inside your apartment or rental house. But …

There is a limit.

It’s not as easy as getting a policy and then, boom, every item you own is protected from damage or theft. These policies come with limits. So, if you have some exceptionally valuable stuff, you may want some extra coverage, which the insurance world refers to as riders. (You can read more about renters insurance riders you should consider here.) How do you know if this applies to you?

Taking inventory

Going through everything you’ll have inside your place will give you insights into what you’ll need insurance for. So, whether you prefer getting out a notebook and pen or turning to one of the inventory apps on the market, it’s essential to take stock of your possessions. It’s also a good idea to update your inventory every few months, so you’ll know what you have and if you need to adjust your policy.

Know your options

You probably didn’t rent the first place you saw listed and you shouldn’t do that when it comes to getting insurance either. Once you’ve figured out your assets, any special requirements you have and how much you’d need to replace your stuff in case of an emergency, it’s time to start shopping around. Pro tip: Make sure you’re comparing apples to apples by asking for the same deductible and coverage limits when getting quotes.



This post first appeared on The Zumper Blog | Rental Market Trends, Real Estat, please read the originial post: here

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What To Know When Deciding On A Renters Insurance Policy With Your Roommate

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