Living with Roommates? How do you structure your renters insurance?

As Texas’ most-populated county, Harris County is a booming place for opportunity. It continues to attract young professionals from all over the country. However, it also costs money to live in Houston or any of its suburbs. The average apartment rent in Houston is about $1,100/month, and over 50% of tenants in the area pay between $700 – $1,500. Given that the cost of living is higher than in more rural areas, you might wonder if you need to make ends meet by having a roommate in your home. How will that affect your renters insurance needs?

The Benefits of Rooming With Someone

Money is a concern these days, especial for young people who worry about their ability to afford rent. With Houston’s average wage sitting at $65,800 for males and $47,100 for females, young people often want to save as much as they can on their rent, by sharing costs with roommates.

Besides the social aspect, which most people enjoy, having roommates has its financial benefits. Most roommates agree to share the utility costs, and the rent, within their properties. Most roommates can agree that by not having to pay as much in rent, and they can save that money for other benefits.

However, living with roommates does have its liabilities. Therefore, all parties within the property will likely need renters insurance. Still, the way they obtain this coverage might vary.

Getting Renters Insurance with Roommates

When you share your space with a roommate, they will pose liabilities to you. You, likewise will pose risks to them, and you both will face other risks just from living where you do, no matter how safe it is. That’s why you both need renters insurance. It’s there to protect you in case you face property damage, loss of use, or liability claims on the property.

However, how roommates get their respective property insurance policies can vary.

·        Some roommates opt to insure both parties’ assets on the same renters policy. Each can contribute a portion of the premium payment to their insurer each month.

·        Often, roommates can benefit from separate renters insurance policies. This can help each roommate assume responsibility for their own affairs, without absorbing the risks or insurance needs of the other party. Most renters policies, even for single parties, are quite affordable. With separate coverage, you might even save yourself a few hassles when one party moves out.

·        If one roommate owns the home, while the other is merely a renter, then the owner might be able to add the roommate to their homeowners insurance policy. However, in this case, it’s often better for the roommate to get their own coverage, to separate assets.

All in all, if your name is on the lease, which it will likely have to be, then you need renters insurance. Talk to your landlord and your roommate to determine which course of action is best for each party that occupies the home.