Sharing Renters Insurance

A: This really depends on insurance company requirements and your state's laws. When planning to purchase renter's insurance, be careful. With most companies, if you are planning to rent with a roommate, each person will need to have his or her own policy. In some areas, you can shop for a joint policy that allows both roommates to be included, but it can be dicey if a roommate moves out or a substantial loss occurs. One party cannot remove another party without written consent and claims checks may be made out to both parties, regardless of whose property was damaged.

Insurance company requirements and state laws may affect your ability to purchase coverage jointly. Renter's insurance also provides personal liability coverage which protects you in the event of a lawsuit. Be thoughtful about the pros and cons of a joint policy rather than getting your own. If you decide to purchase a joint renter's policy, an irresponsible act from your roommate could affect you and your insurance rating adversely.

About the Author:

Steven DiClemente, State Fund President and CEO

Steven DiClemente, the President and CEO of State Fund Insurance, and C. David Whelpley, an agent, co–wrote this article. State Fund Insurance is currently serving the Massachusetts area.

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