Landlords almost always require their tenants to carry renters insurance. If you’re renting a house or apartment with one or more roommates, you may be tempted to get one Farmers Insurance policy with everyone’s names on it to try to save money. But here, agent Daniel Oliver, Farmers Insurance in Edina, MN, explains why it’s better for each roommate to have their own policies.

First, your renters insurance has coverage limits in place. Unless you take the time to increase these, you could potentially have the same limits while doubling the amount of personal belongings you need covered. As a result, if your policy’s limit is $15,000 and you have a fire in your apartment that destroys everyone’s belongings, you only have $15,000 to replace everything. 

Problems may also arise if the value of your belongings differs. If you have a lot of expensive items, like a TV, laptop, and other electronics, but your roommate prefers to live a minimalist lifestyle, they might think it’s unfair to split the monthly premiums 50-50. This can create unnecessary conflict and may motivate them to move out sooner.

If one of you does move out, that can create even more problems, especially if the person who remains needs to file an insurance claim. The insurance company sends a check with in the name of both insured parties, so you’d have to convince your ex-roommate to sign a check from which they won’t receive any money. Not an easy task, especially if you aren’t on amicable terms.

Perhaps the most important reason not to share a policy with a roommate is the impact it can have on your insurance history. If your apartment is broken into and your roommate’s laptop is stolen, they can file a claim. Unfortunately, even though it was their laptop that was stolen, because it’s a shared policy, it affects you as well. This can lead to higher premiums on future insurance policies you take out.

To avoid all these potential complications, take the advice of Daniel Oliver, Farmers Insurance: Get separate insurance policies. This is the easiest way to protect yourself, your belongings, and your insurance record. Farmers Insurance offers a wide range of products, including renters and homeowners coverage. To get a quote, call his office at (952) 925-4454, and like his Facebook page for additional information.