Moving into a new apartment is an exciting moment no matter where you are in life. Perhaps you’re a new student leaving home for the first time, or a young professional heading to a new city to begin your career. Whatever the reason, it’s important to understand how renters insurance can help protect your property at an affordable price. But what if you have one roommate, or even three? Can roommates share a renters insurance policy? Let’s explore this question and more in this quick guide on what renters insurance is and how you can ensure you’re covered.
Can My Roommate Be on My Renters Insurance Policy?
Some insurance companies may allow you to share a renters insurance policy with a roommate, but not all. However, even if your insurer allows your to share a policy, it generally isn’t recommended for the following reasons:
- Cost: For starters, you won’t be saving as much as you think. It’s possible to obtain a renters insurance policy for under $15/month, making it fairly affordable.
- Claim history: If your roommate files a claim for a covered loss, you’ll both have an insurance claim on your records, even if you didn’t suffer a loss. This could affect your insurance rates in the future.
- Property differences: You and your roommate may not have the same amount of stuff, making it tricky to find a fair coverage limit (and rate). What if the value of your personal property is more than your roommates or vice versa? If you share a policy, that means one may end up paying for coverage they don’t need.
- Limits: Even if you find coverage that applies for you and your roommate, some policys have sublimits for certain valuables, such as electronics or jewelry. If you don’t add an endorsement for these items and you both need to file a claim, your policy may not fully cover some of your personal property.
How Much Does Renters Insurance Cost?
According to the National Association of Insurance Commissioniers, the average cost of Renters Insurance in the United States is about $14 per month. Mississippi, Louisana, and Alabama have the highest premiums compared to the national average. North Carolina, South Dakota, and Wisconsin have the lowest premiums compared to the national average. In general, renters insurance tends to be affordable relative to the amount of coverage it provides.
Some of the main factors that could determine your renters insurance rate include:
- Location of the rental unit
- Personal property coverage limits
- Liability protection limits
- Home security features like a burglar and/or fire alarms
- Claim history
Keep in mind that your policy will have coverage limits and a deductible. A standard renters insurance policy covers personal property against theft and damage up to $25,000 and personal liability up to $100,000. Plan deductibles typically range from $500-$1,000+. Depending on your situation, you may choose to increase your limits and/or deductibles. Having a higher deductible will typically result in a lower premium, while a lower deductible will typically result in a higher premium.
How Much Renters Insurance Do I Need?
The amount of renters insurnace you need will ultimately depend on your personal situation and will vary from person to person. Renters insurance is not legally required in any state, but your landlord may require you to carry a policy in order to become a tenant.
To determine how much coverage you need, begin by taking a home inventory of everything you own and its estimated cost. You don’t need specifics, but consider doing some research to estimate your property’s current value. If you have highly valuable items, take note of these as well. Once you have this list, use it when comparing renters insurance quotes as your baseline for the minimum amount of personal property coverage you need.
What Does Renters Insurance Cover?
Now that we’ve answered some questions regarding renters insurance, let’s discuss what renters insurance actually covers. A standard renters insurance policy will typically include these four main types of coverages.
1. Personal Property Coverage
This type of coverage protects your belongings, such as furniture, electronics, clothes, etc. from covered perils such as fire, theft, vandalism, smoke damage, explosions, and more. It should be noted that flood and earthquake damage are not generally covered and require you to purchase additional coverage.
Under your personal property coverage, there special limits, or sublimits, for higher-end valuables, such as jewelry, antiques, fine art, or electronics. These sublimits that may not be sufficient if you suffer a loss. If you own expensive valuables or jewelry items like an engagement ring, then you may want to increase the limits on this coverage or purchase an endorsement for the specific item.
2. Personal Liability Coverage
This type of insurance covers costs if you’re legally responsible for bodily injury or property damage to a third party.
3. “Loss of Use” Coverage
This type of insurance covers additional living expenses, such as temporary housing, in the event of a covered loss like a fire or explosion that causes your home to become uninhabitable.
4. Medical Payments
This type of coverage pays for the medical expenses of your guests if they injure themselves on your property. For example, while your friend is over, they trip and fall inside your apartment, chipping their tooth. Medical payments coverage will help cover their dental costs, up to your policy’s limits.
How Can I Find the Best Renters Insurance Rate?
At AIS, we make it easy to buy renters insurance online for an affordable price. Whether you’re moving into your first apartment or third, our team can work with you to build a policy that adequetly protects your property and beyond. If you’d like to learn more or are ready to purchase, give us a call today at (888) 772-4247. Don’t feel like speaking to anyone? Use this link to get covered in less than five minutes after answering just a few simple questions.
The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.
