2018 Pew Research Center study cited that nearly 1-in-3 U.S. adults
live with at least one adult roommate. Now that inflation and everyday costs
are spiking, you may be in the market for a roommate to defray some of your
expenses. Who doesn’t want to pay half of the electric bill? Do you know how this
action may affect your homeowners or renters insurance?
Many insurance companies will allow you to write a renters policy naming all
your housemates. However, since 2000, the standard homeowners policy (HO 04
58–Other Members Of Your Household endorsement) has offered a way to insure
unrelated household members—whether that member is a senior citizen, disabled
person, roommate or partner.
For additional premium, you can add personal property coverage, additional
living expense coverage and liability coverage to scheduled unrelated persons
who are not guests, residence employees, tenants, roomers or boarders, persons
under 21 in the legal custody of, and living with, a scheduled person, are
covered automatically by the endorsement. However, it might be better
to have your new roommate purchase his or her own renters insurance policy.
This way your roommate will be able to control the coverages that best suit him
Of course, the rented building is not covered, but there is limited coverage for
building improvements or installations, made or acquired at your expense. Keep
in mind that a renters policy is not going to cover floods and earthquakes without
an endorsement or a separate policy.
Also, you and the roommate will need to evaluate the need for other insurance,
such as, a personal auto policy, a personal articles floater or a personal umbrella
If you are making changes to your living situation, give our agency a call. We are
more than happy to review your current policy with you to help you determine
the best limits and coverages for your needs. Have your new roommate give us
a call, too!