A renters insurance policy covers several major costs if serious damage happens to your belongings. One of the biggest perks of living with someone is being able to share expenses, and it often seems to make sense to include both people living in the home on one policy. Talking to an insurance professional is the best way to select a policy that fits your specific needs, and you can use these points to help you start planning for greater financial security if a disaster happens at your rental home.
Know When You Can Share a Renters Insurance Policy
Unmarried couples and roommates can often be included on a single renters insurance policy. The guidelines can vary among states and specific insurance carriers, but you’ll simply let the company know someone lives with you. Then you’ll include the person on the policy. If you’re considering this option, you’ll want to know that sharing a policy can sometimes have drawbacks as well as benefits.
Understand What the Policy Covers
Renters insurance covers the repair or replacement costs for items that are damaged in your rental unit when they’re harmed by a covered peril. This may include your clothing, furniture, and personal appliances. You should also have liability coverage in your policy that covers costs for injuries sustained in your home.
Consider the Policy’s Limits
Once you understand what’s covered, you can start thinking about how much coverage you need. Insurance coverage has a limit on how much the company will pay out to cover the cost of your damaged belongings. When you include your partner on your policy, you’ll be required to share the same limits. For couples who have a large number of valuable belongings, it may be better to have separate policies, which allows you each to have your own limit amount.
Discuss if You Should Each Have Your Own Policy
Having your own policy comes with benefits that go even further than separate limits. Although it’s a tough conversation, you may need to consider the possibility of breaking up. If one of you moves out, the remaining person will need to make changes to the policy. You may also run into challenges with filing a claim if you no longer live together. If your relationship is still new, you may want to maintain separate policies simply for the convenience of handling any claims or changes that arise during the coverage period.
Move Forward with Getting Renters Insurance
Most rental agreements require you to have insurance, which means you’ll want to move forward with securing a policy right away. Once you know if a separate or shared policy is best, you’re ready to get a quote. As you do, make sure you have the level of coverage specified in your rental agreement. If you opt to share a policy, you’ll want to make sure both of your names are on the rental agreement as well as the insurance policy.
If you’re renting, make sure you purchase renters insurance that covers loss or damage to your belongings and protects you in case of liability claims that stem from injuries in your home. For affordable, reliable renters insurance as well as other types of coverage, such as motorcycle and car insurance, San Diego residents trust the experienced agents at Altra Insurance Services. Call us today at (619) 404-6311 to request a free quote for any of your insurance needs.