Different Styles of Roommate Insurance to Consider

Learn about the various types of roommate insurance options available to you in this useful guide.

Introduction

When you move into an apartment with a roommate, you should consider roommate insurance as a financial safeguard for your belongings. Several types of insurance policies can work in a shared living arrangement. This article outlines four different styles of roommate insurance and what they cover.

Standard Renter's Insurance

One of the most common types of insurance for roommates living together is standard renter's insurance, which works for a shared dwelling space. This kind of insurance typically covers common perils such as theft, fires, and natural disasters. Some policies may also include coverage for damage caused by the other roommate or guests. These policies typically have a fixed price, but it will depend on the value of the items you need to insure.

Separate Renter's Insurance Policies

As an alternative to standard renter's insurance, you may decide to purchase separate policies for each roommate, which each individual insuring their possessions. This allows flexibility in terms of what each person wants to cover and what deductible they're willing to pay. Additionally, there's no argument over which roommate caused the damage.

Superior Coverage Renter's Insurance

As the name implies, superior coverage renter's insurance provides more protection than standard renter's insurance policies. It may cover such unexpected events as water damage or mold infestations that standard policies would not. Superior coverage typically comes at a higher cost, but it may be a better option for roommates with many valuable possessions or very few possessions and large living spaces.

Umbrella Liability Insurance

If you're looking for extra protection beyond the standard coverage offered in traditional renters' insurance, umbrella liability insurance is an option. This type of policy provides coverage for legal expenses and settlements resulting from personal injury claims. It usually costs a bit more than regular renters' insurance policies, which often make it a more fitting option for roommates who have significant assets.

Conclusion

Roommate insurance is an essential part of financial planning when you share an apartment with another person. There are several different types of insurance policies which you can consider, each with its benefits based on what your priorities are. As you weigh your options, remember to take into account the coverage offered by each policy and the level of protection you need for your valuable possessions.