Should my roommate buy renter’s insurance?
There are numerous financial benefits to having a roommate. You can share a lot of household expenses, including the lease, utility bills and internet service. But be careful, it might not be a good idea to share renter’s insurance. If you’re a tenant in Halifax it’s important to understand all available insurance options.
What is renter’s insurance?
Your landlord has insurance to protect the building that you live in. In the event of a storm or a fire, this insurance will cover the cost of renovation or reconstruction. However, your landlord’s insurance won’t cover the cost of restoring or replacing your personal possessions. If you’re a tenant, you should purchase renter’s insurance to protect your property from damage and theft.
Sharing renter’s insurance
It might be very tempting to split the cost of renter’s insurance with your roommate in order to save money. Yet in the long run, this is probably a poor decision. There are numerous issues that you must consider in order to maintain a good insurance record—and a good relationship with your roommate!
The first potential pitfall of sharing renter’s insurance is that your belongings and roommate’s belongings probably have different values. Yet the cost of the renter’s insurance policy is based on the total value of personal belongings in the rental unit. Another important issue to consider is that if one roommate makes a claim, the cost of the renter’s insurance policy will increase at renewal time. If the renter’s insurance is shared, the roommate who did not make a claim may be upset to discover that they need to pay more and that their personal insurance record has been affected.
Finally, before you decide to share renter’s insurance with your roommate you should discuss exactly how long you plan to live together. If one of the tenants leaves early—before the insurance policy has expired—it may be unclear who is responsible for the payments. Also, if a claim cheque arrives after your roommate has left, you might need to track him or her down in order to deposit the cheque.
The next time that you’re researching insurance companies in Halifax, please contact Eisenhauer Insurance. Our experienced brokers are ready to discuss all of your insurance needs. We understand how complicated it is to be a tenant and we’re familiar with all of the ins and outs of tenant insurance in Halifax. Contact us today to get a quote or find out more about renter’s insurance.