How Roommates Should Split Renters Insurance: A Simple Agreement Template
Renters insurance protects your stuff — and your liability. But when you share a space, splitting coverage fairly can get messy. Here’s how to do it right with a simple, no-confusion agreement.
Why renters insurance matters for roommates
Renters insurance covers personal belongings, liability, and sometimes temporary housing if your rental becomes unlivable. Most policies cost $10–$25/month and cover theft, fire, water damage, and more. But when multiple people live together, coverage can get complicated — especially if only one person is listed on the policy.
Common roommate scenarios
- One policyholder One roommate buys the policy and others reimburse their share.
- Separate policies Each roommate gets their own coverage — more expensive, but cleaner.
- No coverage Risky. If a fire or theft happens, everyone’s out of luck.
Best practice: one shared policy + written agreement
Most insurers allow multiple roommates to be covered under one policy, as long as they’re listed. This keeps costs low and simplifies claims. But it only works if everyone agrees on how to split the bill and what happens if someone moves out or damages property. That’s where a simple agreement comes in.
What your agreement should include
- Policyholder name — who owns the policy and pays the insurer.
- Coverage amount — total value covered and liability limits.
- Monthly premium — total cost and each roommate’s share.
- Payment method — how roommates reimburse the policyholder (Venmo, Zelle, etc).
- Claim process — how claims are filed and how payouts are split.
- Move-out clause — what happens if someone leaves mid-policy.
- Damage clause — who’s responsible if one roommate causes damage.
Sample agreement template
Here’s a simple roommate renters insurance agreement you can copy and customize:
We, the undersigned roommates at [Address], agree to share renters insurance coverage under a single policy held by [Policyholder Name].
Coverage includes personal property and liability protection totaling $[Coverage Amount]. Monthly premium is $[Total Premium], split evenly among [#] roommates at $[Individual Share] each.
Payments will be made via [Payment Method] by the [Day] of each month. If a roommate moves out, they are responsible for their share until the end of the billing cycle unless otherwise agreed.
In the event of a claim, payouts will be distributed proportionally based on documented losses. If damage is caused by a specific roommate, they may be held responsible for deductibles or uncovered costs.
Signed:
[Roommate 1 Name] ______________________
[Roommate 2 Name] ______________________
[Roommate 3 Name] ______________________
Date: _______________
Tips for smooth coverage
- List all roommates on the policy if allowed by the insurer.
- Choose a policy with replacement cost coverage, not actual cash value.
- Keep receipts or photos of valuables for easier claims.
- Set calendar reminders for monthly reimbursements.
- Review the policy annually or when roommates change.
What if someone refuses to pay?
If a roommate stops paying their share, the policyholder is still responsible to the insurer. That’s why the agreement matters — it creates a record of expectations. You can also include a clause that unpaid shares may be deducted from the security deposit or trigger a formal roommate mediation.
Can roommates file separate claims?
Yes, if they’re listed on the policy. Each person can file a claim for their own belongings. But the policyholder usually handles communication with the insurer, so coordination is key. Keep records of who owns what and document losses clearly.
Liability protection: don’t skip it
Renters insurance isn’t just about your stuff. It also covers liability — like if a guest gets injured or you accidentally damage someone else’s property. If one roommate causes the issue, the policy may still cover it, but the deductible and future premium hikes could affect everyone. That’s why your agreement should include a damage clause.
When separate policies make sense
If roommates don’t trust each other financially, or if one has significantly more valuables, separate policies may be better. They cost more but avoid disputes. Some insurers offer discounts for bundling with auto or student coverage, so compare options.
FAQ
Can we split renters insurance if we’re not on the lease?
Yes, but the policyholder must live at the address. Some insurers require all listed roommates to be on the lease — check before signing.
What happens if someone moves out mid-policy?
They’re usually
