If you have roommates or are considering roommates, every roommate should have their own renters insurance policy. Your landlord may even require that each person on the lease has renters insurance.
College students living in dorms may be covered under their parents’ homeowners insurance. However, a college student living off-campus or any other adult renting an apartment or house needs to have renters insurance.
Why roommates are not covered
Your renters insurance premium is based on the amount of money it would take to replace your personal belongings, not those of other people living with you.
Typically, when you get renters insurance, you provide with the insurance company with a list of your belongings and the estimated value. Your coverage amount is based on that estimated value, which is why renters insurance is relatively cheap.
If you are renting with roommates, each roommate should have their own renters insurance. If your roommate is your significant other, you might be tempted to add them on to your policy — but what happens if the relationship ends? Unless your roommate is your sibling, it is not recommended to add roommates to your renters insurance policy.
In the event of theft or damage, the items belonging to the insured renter are covered. Don’t be tempted to list your roommate’s belongings to your insurance claim. You may be committing insurance fraud, resulting in your claim being denied, your insurance coverage revoked, or worse, legal action being filed against you.
What is renters insurance
The landlord has insurance to cover the building and structure. However, your belongings inside the rental unit are your responsibility.
There are two main parts of coverage to a renters insurance policy: personal property coverage and personal liability coverage. It also provides “loss of use” coverage if your rental becomes unlivable due to damage. Personal liability protection protects you if someone sues you for injuries that happened in your rental or if your pet bites someone.
Your personal property if protected if it’s damaged by a covered event, known as an insurance peril. Common insurance perils include fire, smoke, theft, and storms. Renters insurance policies cover up to a certain amount, usually around $20,000 or $30,000 worth of coverage.
Yael Wissner-Levy, vice president of communications at Lemonade Insurance, told Insider that renters insurance covers three instances:
1. Things that happen to your stuff
2. Things that you’re responsible for
3. Events that force you out of your home
Basic home belongings are covered, but you may need additional coverage — known as riders or endorsements — for specialty items like jewelry, cameras, artwork, bicycles, or musical instruments.
Coverage | Included with Renters Insurance |
Dwelling/Structure | No – landlord’s responsibility |
Personal liability | Yes |
Personal belongings | Yes |
Loss of Use (additional living expenses) | Yes |
High-end electronics/special jewelry | Limited, requires add-on* |
Roommates | No |
Cyber liability | Yes* |
Water damage | Yes |
Flood | No** |
Wind or hail | Yes |
Earthquakes | No* |
Pets | Yes* |
*Available as add-on coverage if not part of policy
**Flood insurance is separate coverage
How much does renters insurance cost?
The average cost of renters insurance is $15 a month, according to the Insurance Information Institute.
Some factors that go into determining your premium are the amount of coverage you want, where you live, if you own a pet, and your credit score. If you already have auto insurance, you may get discounts for bundling your renters and auto insurance from your provider.
How to get renters insurance
Renters insurance can vary a lot by state. Where you live will play a big role in your quote, and each company will consider that differently.
To be sure that you’re getting the best price for your renters insurance coverage, you’ll want to shop around and get quotes from several different insurers. Compare the quotes, and look for the most coverage types and limits. Then, look for the lowest premiums that fit your budget.