Investing in renters insurance is always important for those who live in a shared space they do not own. Co-leasing is a common way to reduce some of the costs of living in an apartment or condo. In this situation, two or more people share the same space. Some property management companies allow this. Others do not.
For those who enter a co-lease, protecting their belongings is still important. Renters insurance can help make that possible.
What Does Renters Insurance Cover in Co-Leasing?
Individuals take out renters insurance policies. This insurance coverage usually only protects the policyholder's needs. It usually provides coverage for the policyholder's belongings. The policy provides financial support for negligence claims against that individual. In short, it basically only protects what is yours.
If you are co-leasing a space, both parties should invest in renters insurance. The policies should be separate. The policies also should match the individual needs of each renter.
- It is never wise to combine policies unless married.
- Always invest in a policy that reflects your possessions and property's values. You will need adequate funding in case you need to replace these items due to a covered incident.
- Be sure your policy specifically outlines your negligence risks. You might need specialized property and liability coverage.
If one person has a policy and the other does not, the renters insurance only applies to the individual who owns the possessions.
For example, in the case of a fire, the policy protects what is yours. It does not provide coverage to another person's possessions.
Of course, these policies will usually cover a dependent child's belongings. It can also cover any other person's belongings named on the plan, such as a spouse. However, for this to occur, the policy must be very specific. Be sure that person's information remains on the documentation.
In most co-leasing spaces, two parties who have no relation sign an agreement. They obtain this agreement with the property owner. However, a co-lease does not reflect automatically in a renters insurance policy. If you decide to co-lease, contact your insurer. Ask about your risks. Inquire about protecting your property and liability. Be sure the other party does the same thing.
Never assume your renters insurance is enough. Be sure it specifically outlines who lives in your home. It should include details about which belongings have coverage. And, be sure you know when it applies. The more information you have from your agent, the better of a decision you can make. Call us for an El Paso renters insurance quote at (915) 562-0009.