Should roommates share renters insurance or each get their own?

Living with roommates? Don’t overlook renters insurance

Living with roommates can be one of the best ways to save money, especially in cities where rent prices are high. You get to split utilities, divide chores, and enjoy the built-in social network that comes with living under one roof. But there’s one topic that many renters avoid—or forget entirely—until something goes wrong: renters insurance.

More specifically: should you and your roommates share one renters insurance policy, or should each of you get your own?

It’s not just a question of cost. Renters insurance affects how your personal belongings are protected, how claims are filed, and even how your future premiums are calculated. So before you decide to share coverage, here’s everything you need to know.

What does renters insurance actually cover?

Renters insurance is designed to protect tenants—not landlords. It typically includes:

1. Personal property coverage – Protection if your belongings are stolen or damaged in covered events like fire, vandalism, or burst pipes.
   
   
2. Liability coverage – If someone gets hurt in your home (e.g., trips on your stairs), this covers legal fees and medical costs.
   
   
3. Loss of use – Reimburses temporary living expenses if your unit becomes uninhabitable due to a covered event.
   
   

Contrary to popular belief, your landlord’s insurance doesn’t cover your belongings. Without renters insurance, you could be left replacing everything out-of-pocket in the event of theft or damage.

Why renters think about sharing insurance

Let’s face it—insurance can feel like an annoying extra cost. If you’re already splitting rent and utilities, why not split renters insurance too? It sounds simple enough.

And there are real savings to consider. A shared renters insurance policy could cost around $200 per year, which means you each pay $100 instead of $150–$180 for separate policies.

According to NerdWallet, some insurers allow up to two unrelated roommates on a single policy, and adding the second person usually doesn’t raise the premium.

But just because you can share insurance doesn’t always mean you should.

The 3 biggest risks of sharing renters insurance

1. You share responsibility—and risk

If you and your roommate are both on a renters insurance policy, any claim either of you files becomes part of both your insurance histories. So if your roommate accidentally causes a kitchen fire, the record of that claim follows you too—even if you had nothing to do with it.

That could affect your future premiums, or even your ability to qualify for certain types of coverage later on (like homeowner’s insurance).

Sharing an insurance history is a bit like sharing a credit card—you’re trusting the other person not to make financial decisions that could impact your long-term record.

2. Coverage limits are shared too

Most renters insurance policies place dollar limits on high-value categories like electronics, jewelry, and art. For example, you might have $2,500 of coverage for electronics. That amount is shared across everyone listed on the policy.

If both you and your roommate have $2,000 laptops and both are stolen, the insurance payout may only cover one of them. This can lead to arguments or lost money.

As Zillow explains, renters often assume their belongings are automatically covered, but shared limits and exclusions can catch you off guard.

3. Claims get complicated

If you file a claim and receive a payout, the check will usually be made out to all insured parties. Even if the damage only affected your belongings, your roommate may need to co-sign the check. If your relationship is strained—or you’re dealing with a roommate who’s moved out or become uncooperative—this can become a logistical headache.

Why individual renters insurance is usually smarter

Getting your own renters insurance means:

• Your policy is tailored to your belongings and liability
  
  
• You maintain your own insurance record and claims history
  
  
• There’s no confusion over who gets what if a claim is paid out
  
  
• You avoid financial entanglement with your roommates
  
  

Even Mass.gov recommends that unrelated tenants get their own coverage to avoid future complications.

And renters insurance really isn’t that expensive—usually about the cost of a few coffees per month. Many policies offer discounts if you bundle with auto insurance or install safety features like smoke detectors.

But what about getting approved for the lease?

Now, here’s where some renters get confused. You might think renters insurance helps you qualify for an apartment—but that’s not the case.

If you’ve ever struggled to get approved for an apartment—maybe because you’re self-employed, new to the country, or don’t have much credit history—you’ve likely heard the phrase “you need a cosigner.”

That’s where Cosign comes in.

Cosign helps you get approved

Cosign is not renters insurance. We don’t cover your personal belongings or act as a liability policy. What we do offer is lease coverage—designed to help renters qualify for housing when they otherwise might not.

If your landlord works with Cosign and you’re struggling to meet their leasing criteria, you’ll be invited to apply through our portal. We’ll review your situation and—if approved—Cosign will back your lease.

Think of us like a financial safety net. Your name stays on the lease. You’re responsible for paying rent. But with Cosign behind you, the landlord knows rent is protected—and you get to move in confidently.

Why renters trust Cosign

At Cosign, we’ve helped thousands of renters get approved across tens of thousands of units—from workforce housing to student apartments.

We know that being responsible doesn’t always show up on paper. Maybe your credit file is thin. Maybe you’re in a career transition. Maybe you just moved from abroad. None of that should stop you from getting a place to live.

With Cosign, you don’t need a co-signing parent, a high credit score, or a six-figure salary to qualify for an apartment.

✅ No interest or debt
✅ One-time fee based on your lease terms
✅ Your lease, your terms—we just help you get in the door

You still might need renters insurance. But Cosign helps you get to that step by clearing the first hurdle: approval.

Final thoughts: split the rent, not the risk

If you’re living with roommates, the temptation to split renters insurance is understandable. But it’s usually smarter—and safer—to get your own policy.

It gives you control, clarity, and peace of mind that your belongings are protected on your terms.

And if you're looking for help qualifying for your next apartment? Don’t stress about needing a cosigner. Just learn how Cosign helps renters find their next home—with confidence.