It may not be uncommon for insurance companies to let your roomies share a renter’s insurance policy, it is important that before you make a decision, you ascertain and weigh the pros and cons carefully if you are living in apartments in Phoenix. Depending on your situation, it is more cost effective to fly solo on your policy.
Pro: Saving Money
Cutting costs is the biggest argument for sharing renters insurance with a roomie. Splitting a policy just like you split bills, is really cheaper than paying for one yourself. But find out how much are you actually saving. On an average rate, renters insurance costs about $190 in a year. This is not a huge financial investment when it comes to paying it for yourself. A typical policy covers around $30,000 in property and $100,000 in liability. So find out if that will be enough to cover you as well as your roommate.
Money is also related with the biggest risks in sharing a renters insurance policy with your roomies. It is a double edged sword. You can save on the monthly premium, but when it comes to file a claim, that’s where it goes down. If your policy doesn’t cover all the apartment stuff and everything gets damaged, you and your roomie will have to pay extra money from your pocket. You can cover up the value of everything you and your roomie own. But what if your roomie’s stuff is more expensive than yours? You probably won’t pay extra for his share, which also brings up another drawback that splitting the costs into two evenly doesn’t sound good as well.
Con: Your permanent record
Albeit you are sharing the insurance with your roomie, the owner of the insurance is the one whoever’s name is mentioned in the policy. In other words, if there is a claim, it becomes a part of that individual’s record. While this doesn’t seem like a big deal at the time, but it can have some consequences in the long run. Having claims on your personal insurance policy history means you pay more for the future policies or end up with a rise in costs when your policy is up for renewal. Even if your claim wasn’t for your stuff, you are deemed a risky customer to insure.