Sharing renters insurance with a roommate can save you both a few bucks in the short run, but it's not always a good idea. While many companies will allow you to add a roommate to your policy, you’ll want to weigh the pros and cons of joint renters insurance first.
The risks of sharing renters insurance with roommates
Many insurance companies offer renters insurance to roommates, but there’s no guarantee that sharing a policy will save you money in the long run.
Say you’re sharing a policy and your roommate files a claim. Even if you had nothing to do with the incident, that claim will also go on your insurance record and stay there for up to seven years. Having a claim on your record could raise your future premiums by 20% or more, according to NerdWallet’s rate analysis.
Even among the most amicable roommates, problems can arise. For example, the total value of your combined belongings helps determine the cost of insurance. But what if one roommate has more expensive things than the other, driving up the cost of the policy? A 50-50 split on the premium wouldn’t seem fair.
In addition, roommate situations can be fluid as career or other opportunities arise. A roommate departing before the end of your policy term means you’ll likely have to reapply for insurance or update your existing policy.
The average cost of renters insurance is $148 a year, or about $12 a month, according to NerdWallet’s rate analysis. Splitting that cost with a roommate would save you only a few dollars each month, and it might not be worth the risks of sharing a policy.
"If you’re someone who moves every year or two, you might want to just have your own policy," says Janet Ruiz, director of strategic communication at the Insurance Information Institute. "That way if you move or they move, you don’t have to redo your insurance policy."
However, if you’re in a committed relationship with your roommate and you co-own most furniture and other belongings, sharing a policy likely makes more sense, Ruiz says.
» MORE: The best renters insurance companies
Tips for sharing renters insurance with a roommate
If you decide to buy a renters insurance policy with a roommate, here’s what to do first.
Evaluate your roommate. Are they a stranger you just met on Craigslist or someone you’ve known for years? Can you trust them to pay their bills on time and split claims checks equitably? (If they fail to pay your joint renters insurance bill, you could find yourself uninsured.)
Think carefully before linking your finances and insurance history to someone else’s by sharing a renters policy.
Take stock of what you own. Consider taking a video inventory of everyone’s belongings, recording each room and the contents of all closets and drawers. This will help you and your roommate calculate the value of your stuff and determine how much coverage you need. In addition, having a home inventory is essential to getting all of the claim money you’re entitled to if disaster strikes.
» MORE: What does renters insurance cover?
Have an honest discussion with your roommate. Talk about how much coverage you want, how you’ll divide the bill and who’ll be responsible for making the payments. Another question to consider if one of you has more possessions than the other: If a fire destroyed your home and everything inside, how would claim money be divided?
Talk to an agent. An insurance agent can assess how much coverage you need and talk you through the pros and cons of sharing insurance with a roommate.
Ask about bundling. Whether you share a policy or not, it’s always smart to ask an agent or insurance company about discounts. Adding renters insurance to an existing auto policy can be surprisingly affordable, thanks to bundling discounts. For example, the savings on your car insurance could be enough to minimize or even negate the cost of adding a renters policy.
» MORE: Personal liability renters insurance: What you need to know
Frequently asked questions
Does each roommate need renters insurance?
Renters insurance isn’t mandated by law, but some landlords require tenants to have a policy before signing the lease. While you and your roommate might be able to meet your landlord’s requirement by sharing the same renters insurance, getting your own policy may be a better idea. Learn more about how renters insurance works.
Does renters insurance cover all roommates?
Your renters insurance generally won’t cover your roommates’ things unless they’re related to you or their names are listed on your policy. Unrelated roommates should generally buy their own renters insurance.
Where can my roommate and I get affordable renters insurance?
Shop around for renters insurance quotes from several companies to make sure you’re getting the best possible rate. Start with NerdWallet’s list of the best cheap renters insurance.
Do I need renters insurance if my roommate and I live in a college dorm?
Maybe not. That’s because your parents’ homeowners or renters insurance policy might include coverage for your personal belongings if you’re living on campus. If not, a renters policy might be worth it.
FAQs
Most renters insurance won't cover your roommate's stuff unless the two of you share a policy, which not all states or insurance companies allow. In most cases, it's best if you each get your own renters policy.
Can my roommates and I share renters insurance? ›
Does each roommate need renters insurance? Does renters insurance cover all roommates? Your renters insurance generally won't cover your roommates' things unless they're related to you or their names are listed on your policy. Unrelated roommates should generally buy their own renters insurance.
Is a good idea to add your roommate on to your renters insurance as you will save money? ›
One way to save money on renters insurance is by sharing a policy with your roommates. However, not all insurance companies allow sharing among unrelated individuals, though, so check with your agent before choosing a policy. Clear communication and trust between all parties are vital to a successful sharing agreement.
Is it better to share renters insurance? ›
Some renters insurance companies will allow for roommates to share a policy, but that's not always the best option. You may be better off getting your own policy. Renters insurance costs about $14 per month for a policy with $15,000 of personal property coverage.
Does renters insurance cover roommate theft? ›
It's a tricky situation if your roommate steals your stuff. If they're also covered by your policy (i.e. as a significant other or related to you), then you're not covered if they snatch your things. Otherwise, your renters insurance can cover you, but there are a few things you'll need to do.
How do I add multiple people to my renters insurance? ›
Call your insurer to add your roommate to the policy and make sure both of you are also named on the lease. And before you sign the paperwork, have a clear discussion with your roommate about expectations so you're both on the same page.
Can you have two names on renters insurance? ›
If you'd like to split renters insurance with a roommate, you must formally add them to your policy because coverage does not automatically extend to everyone living in the same apartment or house. While most insurance companies allow you to add non-spouses or non-relatives to your policy, it is a good idea to check.
Does my boyfriend need to be on my renters insurance? ›
We generally only recommend your partner be added as a co-owner to your home or tenant insurance policy if the two of you have entered into a long-term relationship such as marriage or common-law. Your partner would need to be added as a co-owner of your home or on your lease agreement.
Is it okay to have two renters insurance policies? ›
If you have a roommate and both of you want the protection that renters insurance provides, it is typically better for each roommate to have their own policy.
Should I have renters insurance if I live in a house that my boyfriend owns? ›
Your personal insurance policy (renters insurance) will give coverage for your property and personal belongings in the case of a disaster, a theft, a fire, or another terrible incident, regardless of whether you're moving in with a romantic partner, a friend, or a roommate. This also applies to liability insurance.
Some insurance companies—including Lemonade! —only allow you to add additional people to your policy if you're related to the particular person (meaning they're your brother, mother, spouse, or so on). While you may love and adore your non-related roommates, you won't be able to share renters insurance in this case.
Is renters insurance really worth? ›
Renters insurance coverage is almost always worth it. It is much more affordable than other policies, including home or auto insurance, and provides valuable financial protection. Even if you can save enough money to cover unexpected loss, renters insurance may be worthwhile.
Why is renters insurance so expensive? ›
Insurance is all about risk, so customers that live in areas with higher risks of claims usually have to pay more for coverage. Some location-based factors that impact renters insurance rates can include: The rate of crimes, especially theft, in your ZIP code.
Do you split renters insurance with roommates? ›
Does each roommate need renters insurance? Many insurance companies will require roommates to have their own separate renters insurance policy rather than allowing roommates to be on a policy together. If your landlord doesn't mandate renters insurance, you and your roommates aren't required to carry a policy.
Which of the following is not covered by renter's insurance? ›
Items not covered with renters insurance include: Personal property loss that exceeds the coverage limits on your renters insurance policy. Liability situations that exceed the limits on your policy. Damages caused to the structure of the building you are renting (which is covered by your landlord's homeowners policy).
Does renters insurance cover mugging? ›
In most cases, yes. Even the cheapest renters insurance will cover theft. Typically, renters insurance coverage includes not only home burglaries and break-ins but also theft that occurs away from home, such as stolen laundry or items taken from the trunk of your car.
Can you have two renters insurance policies at once? ›
You can take out as many as you want; payment of property losses will be shared among the companies in the same ratio as the amount of insurance provided by each bears to the total amount. But only ONE company will provide the liability coverage.
Can you share renters insurance with your boyfriend? ›
Most states allow two unrelated people to share a renters insurance policy if they live in the same rental home. Many renters insurance companies allow policy sharing as well.
Does renters insurance cover a spouse? ›
Your household insurance policy (aka, your renters or homeowners policy) covers losses suffered by everyone living in your home and related to you by marriage, blood, or adoption. That means your children, husband, wife, partner, parents, etc. … you get it.
