Under some all-perils renters insurance policies, roommates can share insurance by both being listed as named insureds on the policy. Some states and carriers do not allow sharing of policies.
Coverage Limits
When looking for a renters insurance policy, both roommates should agree on a level of coverage to cover all of their belongings together. Any high-value items should be scheduled on the policy. Speak with a licensed insurance agent when searching for and obtaining adequate coverage to meet your needs.
Benefits
One benefit of renters sharing policies could be a lower premium than if each insured had separate coverage. When filing a claim on one policy, only one deductible would apply instead of multiple deductibles.
Things to Consider
Roommates should create a contract outlining who is responsible for the deductible in the event of a claim to only one tenant’s personal property. All personal property should be inventoried, with photographs of the items, prior to the insurance coverage taking effect. This will also help tenants determine who is owed what in the event of a claim.
Renters may believe sharing a policy will be cheaper and easier in the short term. Roommates should realize the potential problems that could arise between the parties during a claims process.
Replacement Cost
The replacement cost option is available for renters insurance policies. Replacement cost ensures that insureds receive enough compensation to purchase new items of like quality to replace the damage property. If replacement cost is not selected, then claims are settled on an actual cash value basis, which takes depreciation into account. Roommates sharing coverage would have a much better claims experience with the replacement cost option.