You and your apartment, dorm or house mate might share
living expenses, but you each need your own renters insurance policy. It's an
investment that replaces your possessions if they're damaged, stolen or lost.
Learn why this $15 per month policy is an important part of your living
arrangement.
Be an Individual
Whether you and your roommates are strangers, best friends
or cousins, purchase separate policies. Most renters insurance companies won't
include two or more unrelated people on a policy, so be an individual and
purchase your own policy.
Cover Deliberate Damage
Maybe you and your roommate get along great until you have a
big fight and he or she deliberately damages your valuables. If that happens
and you and your roommate share a policy, you won't receive a payout to replace
the damaged item.
Protect Your Future Insurability
Let's say your roommate's car is vandalized. Your combined
policy pays the claim, but since your name is also on the policy, your ability
to purchase affordable insurance is negatively affected for the next three to
seven years. Separate policies protects your future insurability.
Keep the Payout
Joint insurance policies include payout checks made out to
both parties. So when your valuable electronic equipment is stolen, both you
and your roommate have to sign the check. Purchase separate coverage to ensure
you receive the full amount you're due.
Cover Liability
When a visitor trips or falls and decides to sue you,
renters insurance can cover the liability. Slander and libel may also be
covered. Have your own policy to cover your liability.
Know the Limits
Despite purchasing separate policies, your renters insurance
might include financial limits. Discuss coverage caps with your insurance agent
to ensure your vintage guitar or art collection is covered.
Purchase Adequate Coverage
You don't know how much your possessions are worth until you
create an inventory list. Then, purchase replacement value coverage. Although
it costs about 10 percent more than cash value coverage, it allows you to
replace the damaged, lost or stolen item at its current cost rather than the
purchase price minus depreciation.
The decision to share living space with an apartment means
you share expenses too. Make sure each roommate purchases a separate renters
insurance policy, though, as you protect your possessions.