I have Dallas Renters Insurance. What coverage issues should I be aware of when my girlfriend and I are living together? Do I need to tell my insurance company about her? Do I need to give them an accounting of her property, or mine? Who is the check made out to if we’re both on the policy and there’s a claim? What else should I know?
These are great questions, and most people don’t give them nearly enough thought before moving in together. What’s the right way to put your partner on your policy when you’re living together? What might the consequences of doing so – or not doing so – be?
Do You Tell Your Renters Insurance Company That You’re Living Together?
Yes! It’s important to let your renters insurance company know that you’re living together. Because the simple fact is that someone who resides in the home but is not listed on the policy has no coverage.
Married people living together are both automatically covered by the policy language. This makes sense because very few people would leave their spouse off of an insurance policy, but sometimes people make mistakes. And anyone living with you who is not married or related to you has no automatic coverage of any kind under the policy language.
This means that you’ll want to make sure to add your partner to your policy as soon as you’re living together, or to make sure that they have a policy of their own. There are several different options.
What Is The Right Way To Add My Partner To My Renters Insurance?
You can get coverage for a partner when you’re living together in three main ways. Each has pros and cons, and each has consequences for claims. You’ll want to consider your individual and collective situations carefully and make good decisions about coverage.
Covering Someone As A Roommate
You’re often able to add coverage for a girlfriend, boyfriend, or partner by endorsing them onto the policy just like a roommate. While easy and affordable, this route is fraught with peril and probably not the best option for couples who are living together;
- The policyholder can remove the other person at any time, and no notice is made to the person removed.
- There is an additional cost associated with adding a roommate.
- The additional coverage is not available in all states.
- Difficulties often arise in distributing claims proceeds.
Covering Someone As An Equal Partner In The Policy
You can usually add the person you’re living with as an additional named insured to your renters insurance policy. This makes them an equal stakeholder in the policy. It becomes their policy as much as it is yours. However, there are risks to be aware of here as well.
- A named insured cannot be removed from the renters insurance policy.
- Both parties have an equal interest in the policy and in claims under the policy.
- There generally is no cost to add an additional named insured.
- Difficulties can still arise with the proceeds of a claim.
Covering Each Person On Their Own Policy
Two policies for two unmarried people living together is frequently the best choice. If you have unequal coverage needs and coverage assets, you gain additional protections this way. Having significant assets means that you should probably have significant liability coverage to match. This is also the best way to ensure that each of you is covered to the fullest extent possible. Even if your coverage needs are equal and primarily center around lease compliance, you’re often better off with two policies when living together.
- Separate policies mean each of you has the full amount of your liability coverage if you are both responsible for a loss.
- Dallas Renters Insurance is quite affordable; two policies should not be a financial burden.
- A property claim can be most effectively paid to two unmarried residents, and the proceeds split accurately, in this way.
Do We Need To Send The Insurance Company A List Of Property?
You don’t need to send a home inventory to the insurance company, but it’s certainly a good idea to have one. This enables you to claim all of the property that you’re entitled to claim, even after a major loss. Few people could remember the model number of their computer, or how much they paid for a particular item of clothing after the tragedy of a fire or theft. Having a home inventory ensures accuracy and makes claims easier.
When You’re Living Together, Who Is The Check Made Out To In A Claim?
That depends on how you’re both covered.
- If your partner is endorsed onto your policy as a roommate, the check is made out to the named insured only. This can be problematic when accounting for how much of the check should go to whom.
- If your partner is an additional named insured, the check is made out to both of you. This also can be problematic. The risk is that you both have to sign the check in order to cash or deposit it. A disagreement about how to divide or spend the proceeds can mean one party withholding their signature.
- If both of you have policies, your respective checks are made out to the individual named insured on each policy. This is by far the most favorable outcome.
To find out more about renters insurance and living together, or to get covered, just call (800)892-4308 or click to get covered - whether you need Dallas renters insurance quotes online or coverage anywhere else!
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