Should I Share Renters Insurance with My Roommate?

The Grey Areas

Sharing insurance with a roommate is possible, but it may not always be the best decision. While it saves you some money, it also expands your risks. You can expect to spend an average of $168 annually on your renters’ insurance. It seems like a good thing to share the cost until you consider the grey areas.

First, if your roommate has more personal belongings or expensive things that need protection and intensifies your risk, you’d spend more. Also, if your roommate makes claims for damages, it affects your records. For at least three years, you can have your roommate’s claims on your record. Even worse, should your roommate fail to renew the insurance policy, you’d find yourself uninsured.

Roommates who are changeably mobile can interrupt the whole benefit of sharing your renter’s insurance policy. These roommates, prone to change their home address anytime in the year mean that the cost bounces back on you. It may seem like a good idea to share your policy, but you’d want to be sure that they don’t increase your premiums through additional risks. Nonetheless, if you and your roommate co-own belongings, sharing a renter’s insurance would be a good idea.

Things to Do Before You Share Your Renters Insurance with a Roommate

1. Weigh Your Roommate on the Scale

Not literally, but there’s a need to evaluate your roommate relative to taking a joint insurance policy. How well do you know the person? Can you trust them to act in a way that doesn’t affect you negatively? Always remember that you have your insurance history and finances on the line.

2. Take Note of  Your Property

Start by making a video recording alongside a written inventory of your property as well as your roommate’s property. This will help determine how much you’d be spending on your insurance as well as how much coverage you’d need. If you have settled point 1 above, you have more reason to go ahead and share your renters insurance.

3. Have a Chat with Your Roommate

Since you’d be linking your finances as well as your insurance history to your roommate, it’s important that you have a frank and honest chat with them. Things to discuss include:

  • How to share the money from claims should a fire accident destroy all your belongings.
  • Who has more property?
  • What billing date is comfortable for both of you?
  • What budget will work for the both of you?
  • What specific coverage is important to you both?

After having this conversation and making all these considerations, you can then find an agent. It is possible to get discounts if you have an existing insurance policy. This is why it is important that you find the best agent with the most favorable discounts for you. VGW Insurance has just the expertise and team you need to consult for all your insurance concerns. Contact us today.