Roommates sharing renters’ insurance policies is relatively common, and many insurance companies allow those policies, but they are not for everyone. A shared renters insurance policy can be the best option for some people, but you should consider several issues before choosing that option. If you need answers concerning renters or other forms of insurance, contact our McBride Benefit Solutions team, which serves the Florence, AL, area.
Roommates Sharing a Renters Insurance Policy
Roommates often share renters’ insurance policies for convenience and to save money. Shared policies require a single payment and allow roommates to share the insurance costs. However, renters’ insurance is relatively inexpensive in Alabama, averaging $27 per month for $40,000 in personal property and $300,000 in liability coverage with a $1,000 deductible.
Renters’ insurance is inexpensive, but shared policies can bring complications. One occurs when a roommate moves out. Who pays the premium moving forward? Also, roommates sometimes argue about how to share the cost when one roommate has more valuable possessions.
A crucial consideration, however, concerns if you make a claim. When you are included on a shared insurance policy, each claim becomes part of your seven-year insurance record, so a claim filed by a roommate becomes part of your long-term insurance record.
These issues may cause little concern if your roommate is someone you know well, but that is not always the case. Remember that a shared insurance policy is a shared legal obligation, so a slightly higher expense may be a better option to maintain legal separation.
Insuring with McBride Benefit Solutions
McBride Benefit Solutions serves the Florence, AL, area and will help develop an insurance plan to meet your needs. Call us today at 256-767-2603 or stop in to protect yourself and your possessions.
