Insurance companies generally permit renters to share insurance policies, with the primary benefit being the ability to split the cost. However, sharing a renters’ policy isn’t suitable for everyone and can sometimes be disadvantageous, so it’s important to consider your options before making that choice. If you need answers concerning renters’ or other types of insurance, contact our team at Ellis Insurance Agency, serving San Antonio, TX.
Roommates Sharing a Renters’ Insurance Policy
Roommates sometimes share renters’ insurance policies to save money and for convenience. There’s only one monthly payment, and the roommates share the insurance costs. However, the cost savings are relatively minor since renters’ insurance is relatively inexpensive in Texas. It averages $14.42 monthly for $30,000 in personal property and $100,000 in liability coverage with a $500 deductible.
The problem with shared policies is that they can complicate matters. One issue arises when a roommate moves out. You must remove that roommate from the policy, possibly transfer the payment, and make decisions about who pays future premiums.
While these changes are inconvenient, a more significant issue arises when someone makes a claim. If you’re a party to a shared insurance policy, claims against the policy become part of your seven-year insurance record, meaning your roommate’s claim enters your long-term insurance record.
These issues may not be a concern if you know your roommate well, but that’s not always true. Shared insurance policies bring shared legal obligations, so paying slightly more may be better to maintain legal separation.
Insuring with Ellis Insurance Agency
Ellis Insurance Agency serves the San Antonio, TX, area. We can help you develop an insurance plan that meets your needs, so call us at (210) 979-9000 or stop in to protect yourself and your possessions.
