This is an increasingly common question among young singles and other unmarried
individuals who choose to share a house or apartment. Unfortunately, renter's
insurance and other homeowners insurance policies are designed for single individuals
and traditional families. So when unrelated individuals share a residence, insurance
coverage can become complicated.
Insurance laws on this topic vary from state to state, and homeowners and renters
insurance policies vary from one company to the next. However, most insurance
companies recommend that each tenant maintain a separate renters insurance policy
to cover his or her personal property. You should each create an inventory of
your possessions, so there are no questions about which policy covers which
items if you ever have to file a claim.
Some insurance companies allow multiple roommates to be listed on a single
renters insurance policy. If your insurance company structures policies in this
way, you and your roommates can purchase one renters insurance policy to cover
all of your collective possessions. Each person's name should be listed on the
policy, and you should make sure you purchase enough insurance to cover everyone's
property. You'll have to remember to change your policy, however, if a roommate
moves out or if a new roommate moves in.
Things become even more complicated in the case of unmarried couples living
together. Some renters insurance policies automatically extend coverage to any
resident of the policyholder's household who fits the definition of "domestic
partner." But these policies are the exception, not the rule. In most cases,
each partner will need to have a separate renters insurance policy to cover
their personal property. But this is not a perfect solution, because even unmarried
couples often have joint property. The best option in this case may be to keep
detailed records of who actually purchased what, allowing you to make an accurate
claim if the need arises.
Please note that this description/explanation is intended only
as a guideline.