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If you’ve got a roommate or two, it can make sense to share things. Splitting subscription services, going in on food delivery, and splitting the utilities all come to mind. However, there’s one expense you should never share with your roommates: renters insurance. This coverage is so cheap and personalized that it’s more of a hassle to share a single policy than to take out one for yourself.
Key Takeaways
- Renters insurance is one of the most affordable types of insurance, often costing around $20 a month.
- Since renters insurance mainly provides personal property and liability coverage, it makes more sense for each roommate to have their own policy.
- Sharing a renters insurance policy can make it difficult to file a claim and share the payout, which might not be enough to cover everyone’s belongings.
What Renters Insurance Covers–And Why You Need Your Own
Renters insurance is more straightforward than homeowners insurance since it typically only includes personal property, liability, and additional living expenses.
Personal property insurance pays for your covered belongings if a qualifying event damages them. For example, personal property will pay out if a fire in your apartment destroys your clothes, furniture, and electronics.
Renters insurance also includes personal liability coverage, which pays for medical care or legal fees if someone is injured at your place. For example, if you host a party and someone trips over your dog and breaks their ankle, liability pays their medical fees and could pay for legal fees if they wanted to sue you.
Your insurance policy might pay for additional living expenses. Specifically, if your place is uninhabitable and you must stay elsewhere while your home is repaired, this coverage would pay for a hotel and other expenses like food.
Important
Expensive individual items such as jewelry, collectibles, bicycles, technology, and more often require riders that will increase the cost of coverage. So, if one roommate has an expensive item that needs a rider, the monthly cost of the entire shared policy would increase.
Why Splitting Renters Insurance Usually Doesn’t Work
When you request a renters insurance quote, you do it individually, not as a group. This makes sense because renters insurance largely covers a person’s belongings. So, if you purchased a policy with several roommates, it would be tricky to file a personal property claim.
Let’s take a closer look at some possible scenarios. Imagine you had a shared policy and needed to file a claim because your apartment flooded. The insurance company might pay out $20,000 collectively. Unfortunately, you and your roommates might argue about splitting that payout, especially if one roommate lost more or had more valuable belongings than another.
You might also face problems if a roommate moves out before the policy term ends. Since the insurance company would pay out claims to everyone listed on the policy, you would have to contact the insurer to remove the old roommate so they’re no longer listed.
Warning
Be aware that if your roommate files a claim on your shared renters insurance policy, their claim will stay on your insurance record for years, which could lead to higher premiums down the road.
How to Get Affordable Renters Insurance as an Individual
First off, renters insurance is pretty affordable to begin with. Many basic policies will cost you less than $20 per month. Even policies with additional coverages can be found for less than $30 per month. According to Progressive, its policies ranged from $13–$27 monthly in 2024. And it’s easy to find discounts for a renters insurance policy. For example, if you already have auto insurance, ask your insurance provider if they offer renters insurance. If so, you may be able to bundle policies and get a discount on each.
One of the best ways to find a cheap policy is to request quotes from several insurance providers. Use the same coverage limits to make it easier to compare policies and costs.
Tips for If You Do Get Renters Insurance With Roommates
There are really only a few instances when it might make sense to share a renters insurance policy. Mainly, if you’re in a committed relationship with someone who’s financially responsible. You also must be able to communicate easily.
If that sounds like you and your roommate, be sure to shop around for quotes before purchasing a policy. Once you buy one, manage the policy together so you continue to discuss your finances and insurance needs.
The Bottom Line
You might think you’re streamlining expenses by sharing renters insurance with your roommates. Unfortunately, you’ll just create more headaches. For simplicity’s sake (and financial peace of mind), each roommate should take out their own policy.
