You and your apartment, dorm or house mate might share living expenses, but you each need your own renters insurance policy. It’s an investment that replaces your possessions if they’re damaged, stolen or lost. Learn why this $15 per month policy is an important part of your living arrangement.
Be an Individual
Whether you and your roommates are strangers, best friends or cousins, purchase separate policies. Most renters insurance companies won’t include two or more unrelated people on a policy, so be an individual and purchase your own policy.
Cover Deliberate Damage
Maybe you and your roommate get along great until you have a big fight and he or she deliberately damages your valuables. If that happens and you and your roommate share a policy, you won’t receive a payout to replace the damaged item.
Protect Your Future Insurability
Let’s say your roommate’s car is vandalized. Your combined policy pays the claim, but since your name is also on the policy, your ability to purchase affordable insurance is negatively affected for the next three to seven years. Separate policies protects your future insurability.
Keep the Payout
Joint insurance policies include payout checks made out to both parties. So when your valuable electronic equipment is stolen, both you and your roommate have to sign the check. Purchase separate coverage to ensure you receive the full amount you’re due.
When a visitor trips or falls and decides to sue you, renters insurance can cover the liability. Slander and libel may also be covered. Have your own policy to cover your liability.
Know the Limits
Despite purchasing separate policies, your renters insurance might include financial limits. Discuss coverage caps with your insurance agent to ensure your vintage guitar or art collection is covered.
Purchase Adequate Coverage
You don’t know how much your possessions are worth until you create an inventory list. Then, purchase replacement value coverage. Although it costs about 10 percent more than cash value coverage, it allows you to replace the damaged, lost or stolen item at its current cost rather than the purchase price minus depreciation.
The decision to share living space with an apartment means you share expenses too. Make sure each roommate purchases a separate renters insurance policy, though, as you protect your possessions.