Home Home insurance Home Insurance Basics Oh, you mean him? Why you should tell your insurer about your roommate Oh, you mean him? Why you should tell your insurer about your roommate Written by: Sheryl Nance-Nash | Reviewed by: Michelle Megna Michelle Megna Michelle, the former editorial director, insurance, at QuinStreet, is a writer, editor and expert on car insurance and personal finance. Prior to joining QuinStreet, she reported and edited articles on technology, lifestyle, education and government for magazines, websites and major newspapers, including the New York Daily News. | Posted on June 15, 2012 Why you should trust Insure.com Quality Verified At Insure.com, we are committed to providing honest and reliable information so that you can make the best financial decisions for you and your family. All of our content is written and reviewed by industry professionals and insurance experts. We maintain strict editorial independence from insurance companies to maintain editorial integrity, so our recommendations are unbiased and are based on a comprehensive list of criteria. In today’s economy, having a roommate may seem like an ideal solution for a stretched budget. Your main concern about roommates may be whether they can pay their share of the household expenses, or if you’ll get along with them. MSN Real Estate has created a survival guide for those who decide to share a home. However, before taking that step you should consider how having a roommate may affect your auto, homeowner or renter’s insurance. Talk to your insurance agent Talk to your insurance agent before you take on a roommate. You might be surprised what you learn. “Depending on the company’s underwriting guidelines, listing a roommate on the policy can increase the premium or require a different type of policy,” says Wendy Blitstein, director of underwriting at Security First Insurance in Florida. If your roommate causes a loss and you have not told your insurance company about him or her, your coverage could be in jeopardy. Not all policies include liability or personal property coverage for roommates. “Many companies will require that you purchase an additional policy for each roommate,” Blitstein says. “Our renters policy provides comprehensive coverage, liability and personal property for each roommate at a flat rate of $50 per roommate.” Numbers matter. If you own a home and add one or two roommates, there is usually no problem. However, if you add three, your carrier may refuse to insure you, says Frank Darras, founding partner of DarrasLaw in Ontario, Calif., which specializes in insurance issues. Roommates can be risky More roommates mean more exposure for the owner. For example, roommates may own a dog. “Be aware [that] even if it’s not your pet, you may be sued if a guest is bitten because you knew or should have known of the pet’s propensity to bite,” says Darras. Know definitions for terms in your policy. For renter’s insurance and personal liability, know how the insurance company defines an “insured.” Your policy may be limited to you, your relatives or a person in your care up to a defined age (such as age 24). Some policies may also cover a “domestic partner,” says Jon Grandelis, personal insurance manager at Woller-Anger & Co. in Elm Grove, Wis. Separate is better. Each roommate should have his or her own, separate policy. “Their stuff isn’t covered under your policy,” says Kevin Lynch, an assistant professor of insurance at The American College in Bryn Mawr, Pa. Roommates driving your car Auto insurers want to know about all the members of your household who drive, but you may not have to add a roommate to your auto policy. You can give anyone permission to drive your car, on an infrequent basis, without listing them on your policy. Only someone with “frequent and regular access to your car” needs to be added, says Lynch. Insurers want information on all household members to ensure proper pricing. But if a roommate is not disclosed or listed, there’s still coverage if he or she crashes your car and is defined as a permissive user at the time of a loss, says Grandelis. However, some insurers will pay out only the state’s minimum coverage when a permissive user is operating your vehicle. This is known as a “step-down provision.” Because state minimum auto liability limits are never adequate, says Lynch, talk to your agent to make sure you have proper coverage for your financial circumstances. CarInsurance.com has more about states with step-down provisions. If you need to add a roommate to your policy, the cost could be significant. The final bill will depend on their driving record and — in many states — credit history. It’s another reason to choose your roommates wisely. Even if you get insurance matters squared away, choosing the wrong roommate can make your life difficult. QuickTake Homeowners insurance basics Guide to additional living expenses coverage How to create a home inventory list Does homeowners insurance cover theft? Why you should hire a public insurance adjuster How to shop for homeowners insurance in five steps Do I need homeowners insurance? What does homeowners insurance cover? Home insurance inspection: how to prepare a checklist How can I get homeowners insurance after non-renewal? Can a homeowners insurance company drop you? How to find a homeowners insurance policy Guide to home insurance for new construction The basics of title insurance How to read your homeowners insurance policy Insurance coverage for holiday catastrophes you’ve seen in the movies 11 astonishing things covered by home insurance Home insurance exclusions: What does homeowners insurance not cover? Working from home: The remote worker's guide to insurance Your guide to home insurance deductibles Types of homeowners insurance How much home insurance do I need? Home insurance: How to avoid being underinsured How to switch home insurance 15 ways to save on home insurance Pay more, get less: Percentage-based deductibles Should you carry an umbrella insurance policy? How much should I insure contents for a 2,400-square-foot home appraised at $600,000? Our garage is very unstable. Do we have to wait until it falls over to file an insurance claim? It is a hazard! Hidden home insurance loopholes can shock you See more > In case you missed it What is HO-6 insurance? Average home insurance cost in 2023 What is dwelling coverage and how much do you need? Personal liability insurance: What it is and why you need it Renters insurance quotes: Compare rates Hurricanes and home insurance: 14 key questions answered Replacement cost policies for your home: Getting what you pay for How much do claims increase home insurance rates? Mobile home insurance: What does it cover and how much does it cost? Homeowners insurance basics Home Insurance Advisor The Best Cheap Homeowners Insurance of 2021: Guide How much flood insurance do I need? How to bundle home and auto insurance policies to save money The largest home insurance companies by market share Home Insurance Discounts Guide to dog liability insurance: cost and coverage Do you have an emergency go-bag? Most Americans don’t 1/1 Related Articles Home insurance claims – How to file and what you should know By Chris Kissell Homeowners insurance basics By Shivani Gite Guide to additional living expenses coverage By Lena Borrelli What is dwelling coverage and how much do you need? By Lena Borrelli Does homeowners insurance cover water leaks? By Nupur Gambhir Cost of living comparison by state By Chris Kissell Table of contents Talk to your insurance agent Roommates can be risky Roommates driving your car Get instant quotes now ! Please enter valid zip Get quote