Will Renter's Insurance Cover My Roommate's Stuff?
Renter's insurance is an inexpensive way to protect yourself against the loss of property as well as potential liability if someone suffers an injury while in your apartment. If you have a roommate, it's important that he is either covered by your renter's insurance or has coverage under his own, separate policy.
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Renter's Insurance
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Your landlord's insurance protects only her interests in case of theft, vandalism, fire or injury. If your property is damaged or stolen, or your dog bites a guest, you are out of luck unless you have renter's insurance. Renter's insurance is generally inexpensive (premiums are usually only a few hundred dollars per year) but can save you from financial ruin in case of a lawsuit, fire or criminal incident. Some landlords will require you to get renter's insurance as a condition of being able to live in one of their properties.
Roommates
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Your renter's insurance won't cover your roommate's property or liability if she causes an injury to a guest in your home. Before taking on a roommate, ask her to either take out her own renter's insurance or to agree to be listed on yours.
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Joint or Separate Policies
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You and your roommate may have the choice of purchasing a joint or separate renter's insurance policies. The advantage to a joint policy is that you can minimize your costs and it's easier to keep track of one payment. However, if you have to file a claim, the insurance company pays it jointly to you and your roommate, even if the damaged or stolen property belonged only to you. An unethical roommate may refuse to give up his share of the insurance claim even if you were the only person who suffered a loss. With separate policies, you'll be individually compensated for any losses; you just need to set up an accountability system that ensures that you both pay your premiums each month.
Home Businesses
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If either you or your roommate has a home-based business, or does business out of your home, mention this to your insurance agent and ask about home business coverage. Some renter's insurance does not cover business-related losses or liability issues. For example, if your roommate regularly uses his computer for business purposes, his insurance company may refuse to replace it after a fire if it learns that it was used for reasons other than study or personal entertainment. Home business policies and riders are generally inexpensive and may even be tax deductible.
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