Why some tenant insurance policies cover roommates and others don’t

This guide is part of our series on how roommates impact your tenant insurance policy. 

Living with roommates comes with its fair share of challenges. And while we all know things like dishwasher duty and hogging cupboard space can cause friction, less of us think about the nightmare of divvying up responsibilities in the event of a disaster in the home. That’s where a robust tenant insurance policy which covers all of you can be a real gamechanger. 

Despite this, very few providers make it possible to group roommates onto the same policy. That leaves a lot of renters in a tricky position when dealing with claims. Whose items are prioritised as part of contents coverage? Who was legally liable for damages? These questions highlight the importance of a policy which covers everyone living in a property. 

So, why don’t all providers do this? That’s exactly what we’re going to tackle today. 

Do all tenant insurance policies allow you to share with roommates? 

The short answer is no. Most providers refrain from offering a policy which lumps all roommates under the same level of coverage. This isn’t something which renters are always aware of, so it’s important to check when applying for a policy whether or not it applies to just yourself, or everyone living at the property. 

Also remember that some roommates are treated differently to others. Spouses, common law partners and children will usually be covered by one policy, even if you’re not always legally tied to them. 

Why do some policies not cover roommates? 

There are several reasons why some insurers decide not to include roommates under the same umbrella as part of a contract. Chief amongst those are:

• Named insured limitation. Shared policies still tend to offer a single coverage limit. That means if the combined value of contents needing to be covered is high, a combined policy might not be able to provide ample coverage. 

• Individual liability risks. Some providers prefer to assess tenants on a person-by-person basis. This is because each individual will have their own unique set of possessions and liabilities. Analysing people in this way makes it easier for a provider to offer specific risk assessment to each renter. 

• Payment and cancellation issues. If more than one person is named on the policy, it could be possible for them to cancel it without the other’s permission. 

• Property ownership confusion. During successful claims, a cheque will normally be paid out to all named on the policy. This might cause friction amongst tenants, as they’ll have to decide how the money is divided. It might not be as simple as splitting it evenly if one person thinks the items they’ve lost were of greater value. 

Why some policies do allow you to add a roommate 

At APOLLO, we make it possible for renters to add roommates to their tenant insurance policy. That’s because we understand that it solves a variety of headaches for tenants during both the application process and claims stage. 

Here’s a handful of benefits, for both you and your insurer, when it comes to combining a policy. 

For you

• It saves you money. A policy that you split with one or more people will save you money every month when it comes to your premiums. You no longer have to foot the bill yourself, but instead split it between however many of you there are. 

• It can simplify your coverage. Some items in your home could be shared between you. Things like couches, electronics, and kitchen appliances might not specifically belong to anyone. A joint policy means you won’t have to split these possessions out across multiple policies. 

• It makes things more convenient for you. In the event of a claim, only one person needs to serve as a contact. The same is true throughout the management and renewal stage. Just remember it’s better for everyone on the policy to have a say at some point. 

• It ensures you are compliant with landlord requests. Some landlords require you to have a tenant insurance policy as part of a lease agreement. If there’s multiple of you in a home, it’s simpler to bundle together and comply with this request as a group. They’ll probably prefer that as well, as it makes it easier for them to manage. 

For your insurer

• Less admin. Being realistic, the fewer policies that are needed for one property, the easier it is to manage. This makes it easier to manage and monitor a policy when it comes to factors like monthly premium payments and renewal dates.

• More efficient coverage. By combining a policy, insurers might be able to provide a more robust and efficient type of coverage. This often has benefits for the tenants too, who might be asked to pay lower deductibles in the event of a claim. 

• Claims can be expedited. When just one claim needs to be handled, the process tends to be a lot quicker than when two or more claims are active. 

Is adding a roommate to my tenant insurance policy right for me? 

Deciding whether or not to add a roommate to your policy depends on your specific situation. There are without question benefits to bundling a policy in this way – but you’ll also need to weigh up the potential downsides. To better understand whether it makes sense for you, check out our handy guide on how coverage works when multiple tenants share a policy.