Is 2021 the year that you and your significant other will take the big step of moving in together? If so, then it’s definitely something you shouldn’t take lightly. After all, you will now be sharing a home with someone new, and this means getting used to new habits, routines and preferences of the closest person in your life. It also means taking responsibility for yourself and addressing the numerous liabilities that come with sharing a home with someone else.
When it comes to renters insurance, the fact that you are now sharing a space with someone else means that your insurable risks are now doubled. However, it does not necessarily mean that you need a single renters policy to cover both of you. In fact, many partners who cohabitate continue to need separate renters insurance policies even though they might now have combined assets. Here’s why.
Moving In Together Does Not Mean Legal Responsibility for Each Other
If you decide to move into a rented home with your partner, then you both remain separate tenants, legally speaking. Because you are not married, you have not combined your assets or responsibilities for one another, even though you might cohabitate and share a lot of your personal items. As a result, a problem within the home might only involve one of you, as opposed to both.
Under these circumstances, having separate renters insurance policies can come in handy. For example, one of you might be away from home on a business trip, and the other remains behind. During that time, the partner who stays home accidentally causes a kitchen fire, which damages the space and requires repairs. To compensate the landlord for their property damage, the tenant might be required to file a claim against their renter’s liability insurance for the necessary costs. By filing against their own policy, they won’t involve the other partner in a matter that is their own to handle.
The reason it’s important to have separate renters insurance under such circumstances is because if one party files a claim on their own policy, then it won’t become part of the other partner’s insurance history. Were a claim to be filed on a joint policy, then both parties could face increased premiums in the future due to the fact that one party’s insurance risks are not discernable from the other’s.
Having Joint Policies Helps You Keep Assets Separate
While you and your partner might share all the possessions within the rental home, it’s probably still apparent which assets each party brought with them when moving in. Likewise, if the time ever comes when you have to go your separate ways, then quite a few possessions will leave the property, too. Therefore, to keep your property separate, it’s often better to have separate renters insurance.
For example, one partner might have provided all of the furniture for the home, while the other brought electronics and other personal items with them. If you ever end the relationship, then one set of possessions will disappear, while the other set will remain in place. When it comes to property insurance, this could create an additional challenge.
If you and your partner have insured all possessions under the same policy, then a break up could cause an additional hassle. One partner might be left with possessions insurance that is more than they realistically need, while the other might have no coverage at all and be forced to buy a brand-new plan.
As a result, it’s often easier for unmarried partners to carry separate renters insurance plans for each party’s personal assets and liabilities. However, a joint plan is not out of the question, and can save you the expense of paying for a second policy for the same space. Still, because renters policies are generally very affordable, having two in your budget might seem like an easy substitute as opposed to worrying about separating assets in case you ever break up.
If you have questions about how to structure renters insurance when moving in with your significant other, then don’t hesitate to work with BluCanopy. We’re here to help every renter design the customized benefits that will provide them with exceptional protection at all times.
Also Read: Can I Get Evicted for Not Having Renters Insurance?
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