Should I Share Tenant Insurance with My Roommate?

roommates

If you rent an apartment, house or even a room, you stand to benefit from purchasing tenant insurance. As explained in a previous article, tenant insurance is a simple and affordable way to insure your belongings and protect yourself in the event of a lawsuit. But what if you have roommates? Is it worth pooling your resources and sharing a policy? In this article, we get to the bottom of this oft-asked question.

But, first, a quick recap.

What is tenant insurance?

You can think of tenant insurance as covering what your landlord’s insurance policy doesn’t. Your landlord’s insurance typically includes protection for the building itself and any appliances, furniture or other items provided by the landlord.

Tenant insurance, on the other hand, covers your personal belongings against almost all types of damage, including loss of property due to fire, floods and break-ins. This coverage generally applies whether or not your personal property is inside your home (for example, if you’re travelling and your luggage gets stolen). It also includes personal liability coverage in the event that you inadvertently injure another person, which applies whether or not the incident occurs in your home.

Now, to the question at hand.

Should I share tenant insurance with my roommate?

There’s one potential advantage to sharing tenant insurance: it can save you some money. Cost is of course an important factor to consider. However, sharing a policy has a few major drawbacks, including the following:

  • Splitting the payment can be difficult. The matter of how much each person should chip in can be a problematic. If one person has less expensive belongings, this person may feel it’s unfair to split the policy 50/50. This then raises the difficult question of how exactly payment should be divided.

 

  • Filing a claim can be complicated. You’ll always need your roommate’s signature to file a claim. This can sometimes cause problems when roommates get on bad terms with one another, or if the other person leaves town or suddenly moves out.

 

  • Your insurance record may take a hit. If your roommate files a claim under your policy, it ends up on your insurance record, regardless of whether or not the claim involved you. Your insurance record can follow you for years and result in you needing to pay higher premiums when you buy tenant or homeowners insurance.

In conclusion, while the decision to get tenant insurance is an easy one, you should be wary about sharing a policy with a roommate just to save a few bucks every month.

 

Tenant insurance in Alberta

For quality tenant insurance at the low rates in Calgary, Edmonton and across Alberta, work with the brokers at TSG Insurance. For more information about our company or our services, or to get a free quote, contact us today.