Sharing an address doesn’t automatically mean everyone in the home is covered under one tenant insurance policy. Coverage depends on who’s included in your tenant insurance contract, including names, rights, limits, and claim history. It’s often best for roommates to have separate tenant insurance policies, especially if you’re not related, but check the declarations page to confirm who’s covered, particularly if someone moves out or sublets.
To help us understand what to look for, our team reviewed the Financial Consumer Agency of Canada’s tenant-insurance guide, the Insurance Bureau of Canada’s guidance for roommates, and Public Safety Canada’s flood-ready renter guide, which included a handful of questions about water-related risks relevant to everyone in the home.
Can Roommates Share Renters Insurance?
Sometimes. An insurer may agree to put two or more unrelated roommates on one tenant policy, but rules vary. Roommates listed as occupants or additional interests may not have the same rights and coverage as a named insured. These rights and coverage vary among insurers. For example, coverage may not extend to contents or liability, or roommates may not have cancellation rights or the right to claim payments.
Unless an insurer agrees in writing to insure roommates with the same protection as named insureds, IBC recommends unrelated roommates have individual tenant policies. A tenant policy will only insure belongings owned by the insured.
Does Each Roommate Need Tenant Insurance?
Roommates need to be covered by an insurance policy to protect their belongings, liability, and additional living expenses. Each roommate can have their own insurance, or you can have one policy as long as all roommates are named and covered.
Remember, the landlord’s policy normally protects the building and landlord’s interest, not your belongings or personal liability. Some leases require liability coverage up to a certain amount or proof of insurance.
Read More: See When Renters May Be Responsible for Guest Damage
Does My Parents’ Policy Still Cover Me?
Some policies provide limited coverage for a student who is temporarily living away from home to attend school. Restrictions on dependency, age, full-time study, contents limits, location and liability are policy-specific.
Check with the parents’ insurer and get coverage in writing before you decide not to purchase a tenant policy. Be sure to include the student’s name and address, what is covered, the limits, and when coverage will end.
What Tenant Insurance Can Cover
| Coverage | What it can do | Shared-policy question |
|---|---|---|
| Contents | Subject to the terms of settlement and policy limits, the policy may pay for insured damage or loss of belongings. | If the limit is combined, which roommate owns each item? |
| Personal liability | Personal liability responds to claims involving property damage or bodily injury if the insured is legally liable for covered injury or property damage. | Is every roommate an insured for their own acts? |
| Additional living expenses | Pays eligible additional expenses when an insured loss makes the home unfit to live in. | Who approves individual expenses? Is the policy limit shared? |
| Optional water coverage | Overland flood damage and losses caused by sewer backup can be protected against by purchasing the available Optional Water Coverage. | Are the covered perils separate, combined or excluded? |
| Scheduled property | Scheduled property is used to increase or broaden coverage on particular high-value items. | Whose name and proof of value appear on the schedule? |
Tenant insurance policies commonly include limitations, exclusions and deductibles.
Potential Benefits Of A Shared Tenant Policy
- Same terms, conditions, and coverage for all named roommates, assuming it’s set up correctly
- Potentially lower monthly premiums, as there’s no guarantee that adding tenants is free or that you’ll save money on a joint renters insurance quote
- One renewal date to remember
- A shared renters insurance inventory can be easier to maintain if it’s clear who owns what.
Risks Of Sharing A Tenant Policy
Consider these potential issues when sharing a tenant insurance policy:
- Named status: Make sure you’re all named insureds on the policy, not just occupants of the dwelling or additional interests.
- Shared limits and deductible: Agree ahead of time about who’s going to pay what if there’s a deductible. Understand that a big enough loss can use up the available personal property or additional living expenses limit.
- Claims history: Claims can be a factor if you apply for home, condo, or apartment insurance in the future.
- Payment and cancellation: Agree ahead of time who receives mail about the policy, who’s allowed to make changes or cancel the policy, and what happens if one party misses a payment.
- Inventory: Each policyholder should take an inventory of their belongings. Take photos of items in current condition. Keep lists and receipts, and update them as you buy new items.
- Changed use: Tell your insurer about changes that could affect coverage: adding/removing a roommate, subletting, starting a home business, purchasing an item of value, or acquiring a pet when the policy or application requires it.
Read More: See How Tenant Insurance May Respond to Water Damage
Declarations-Page Checklist Before You Share
| Check | What you need in writing |
|---|---|
| Insured names | Make sure every roommate expecting contents and liability protection is named in writing in the correct capacity. |
| Contents | Put the combined limit, special sublimits, replacement-cost terms and ownership evidence in writing. |
| Liability | Put the limit, insured-person definition and treatment of one roommate’s damage to another’s property in writing. |
| Living expenses | Put the combined limit, eligible costs, approval process and payment recipient for living expenses in writing. |
| Deductible | Have a written agreement that describes your deductible amount and how to split the cost of the deductible in the event of a covered loss. |
| Policy control | Who can cancel or make changes to the policy? Where will written notices be sent? How will a departing roommate be removed from the policy? All should be put in writing. |
| Optional coverages | Get the terms for water, earthquake, identity theft, bicycles, jewellery and a home-based business in writing. |
When A Roommate Moves Out, Moves In Or Sublets
- Roommates moving to a new address should arrange separate coverage effective on their move-in date.
- If a roommate moves in, insurers will not automatically add them, so notify your company. Make sure you receive written confirmation of any named-insured changes and premium adjustments.
- Subletting and short-term rental activity can be restricted or excluded under tenant policies. Always let insurers know when occupancy changes. Do not rely on an informal agreement between roommates.
Read More: Review Ontario Tenant Guest and Move-In Rules
Should Roommates Share One Tenant Insurance Policy?
Separate policies are usually safer.
However, a shared policy may work well in a stable household where all residents agree on what to cover, including policy limits and deductibles, how to pay the premium, and the claims process. Make sure everyone has named-insured status and all associated rights.
Individual policies are a better idea if ownership differs, one person has valuable possessions, the household changes often, or the insurer will not commit to providing everyone with named-insured status.