Finding an apartment in New York City is a stressful and time-consuming process, and actually signing the lease takes a fair bit of effort. In between scheduling apartment showings, working with a moving company, and signing the documents, renters must also remember to find a renter’s insurance policy. Renter’s insurance protects a renter’s items from unexpected events, like severe weather. Many landlords also require that renters acquire a policy within several days of moving to the apartment.
What to Look For in an Apartment
There are lots of things you need to know about what to look for in a lease. For example: what amenities the apartment offers, which kind of furniture items are necessary, and which will end up sitting on a top shelf with dust on it, how much pet fees you owe if you already own or are thinking of getting a pet. Renters must also think about how the space will work with their furniture and belongings. Perhaps one of the most important parts of signing a lease is finding a renter’s insurance policy.
What is Renter’s Insurance?
Now you may be thinking, “What in the world is renter’s insurance?”
Essentially, renter’s insurance is a policy that covers a multitude of mishaps that may happen in the place you are renting. For example: theft, water damage, injuries, incidents resulting from natural disasters, and a plethora of other random scenarios. An insurance policy covers the renter from unexpected events that damage their belongings. A policy costs less than $1/day, and renters with high-value items can add them to their quote. Renters can find many insurance providers online, and some now offer mobile apps to make managing their policy seamless.
Landlord vs. Tenant Responsibility
One of the good things about renting a property is that it is the landlord’s responsibility to maintain it. Not yours. Crack in the ceiling? No need to run to Home Depot and watch YouTube tutorials on how to fix it. Simply call your landlord, and they will take care of it for you. However, you still retain authority over your belongings and the people you invite into your space. If your couch gets ruined from a flood by said crack in the ceiling, your landlord does not have to replace it. However, if you were to have renter’s insurance, then it would be covered.
Another example, let’s say your friends come home after a long night out and about. One of them walks into your kitchen, stumbles across the floor, and by some way or another sprains their wrist. You don’t know this person very well, and suddenly panic strikes through your body. What if they make a claim that the floor was slippery because you had just cleaned and that’s why they fell? Sounds silly, but I would be lying if I said it hasn’t happened before. Thankfully, renter’s insurance would cover any legal fees involved in a case that is made against you.
Splitting a Renter’s Insurance Policy with Roommates
Next up, how do you share it with your roommates? First, you should take note of coverage limits that exist on most, if not all, insurance policies. This is the maximum amount of money an insurance company will offer you in the case that something happens. When sharing renters’ insurance, it is good to figure out all items that are split between you and your roommate/s to see if you meet the coverage limit. This coverage limit does not increase or decrease depending on how many people are on it, so make sure you have all your ducks in a row.
Be clear on the pricing of renters’ insurance and see if your roommates are comfortable splitting the price. A policy costs about 50 cents a day, which averages to $15/month, but you don’t want to be stuck solely paying a recurring charge that involves everyone under your roof. You may even decide it is affordable enough that you can each have your own set of renter’s insurance so you don’t have to share. Maybe your roommate is a complete klutz and has accidents all the time in which so you may want to discuss having multiple sets of renter’s insurance.
Splitting Claims Checks
In the case that you are sharing insurance, it is important to note that all claim checks will be payable to both of you. Either party can cancel or change the policy at any given time, so make sure that you trust your roommates enough to share with them.
It’s important to note that a renter’s insurance policy does not cover theft between roommates who are on the same policy. Therefore, renters should only share a policy with roommates they trust, like a best friend, family member, or person in a relationship.
Acquire Separate Policies
It may be easier for each roommate to purchase their own policy, especially as the number of people in the apartment increases. This way, each tenant maintains their own policy and protects themselves. It also becomes one less thing to worry about if one roommate leaves or subleases their room.
Conclusion
Now that you are more familiar with renters’ insurance, go out there and shop for one that fits your requirements and needs! Always carefully read through the insurance policies to ensure you are familiar with what you are signing up for. Best of luck!
Editor’s Note: We updated this article to enhance readability.
