When you invest in a renter’s insurance policy, the policy covers you as an individual. In addition, a spouse or relative that lives with you will also be covered. However, it is important to always check your policy to ensure you know exactly who is covered. There may be some cases where you will consider listing other people on your renter’s insurance policy. The professionals at High Favor Insurance, who currently serve customers in Birmingham, MI, can advise you on who should be listed on your renter’s insurance policy.
It is becoming more and more popular for landlords to require that their tenants purchase a renter’s insurance policy. Doing so will greatly reduce the financial liability for both the tenant and the landlord in the event of an accident. In addition, the landlord may request that they be listed on the insurance policy as an interested party for proof that you have obtained an adequate amount of coverage.
An interested party is simply someone that your insurance provider will notify that you have coverage. In addition, if you make any changes to your policy or cancel the policy, they will also be notified.
Adding Roommates to Your Renter’s Insurance Policy
Renter’s insurance is not appropriately priced for the risk of including coverage for a roommate. For each person listed on the policy, the risk of a claim is increased. While some insurance companies will allow you to list other individuals on your renter’s insurance policy, it is strongly ill-advised.
If you list a roommate on your insurance policy and they ever need to file a claim, you can face serious ramifications as the policyholder. From that point on, anytime you apply for insurance coverage, such as for a home or a car, that claim will show up as part of your insurance history.
If you have additional questions about who to list on your renter’s insurance policy, contact High Favor Insurance, which proudly serves Birmingham, MI. Give us a call today.