Most homeowners insurance policies do cover a roommate’s belongings if the homeowner still resides in the residence. It is best to check with your insurance company to see if there are any restrictions or exclusions that would affect this situation.

If you are renting out a room, it may be a good idea for the roommate to purchase a renter’s insurance policy for extra protection. This will guaranteed the coverage of their belongings should a disaster or unforeseen tragedy occur. These types of policies also provide protection in the event the roommate is sued for some reason.

Is there an additional charge associated with having a roommate covered under my homeowners policy?

This varies based on the insurance company. If you have more than one roommate, there may be an additional charge associated that may affect the cost of your current policy.

Do I need a lease for my roommate for their items to be covered?

Again, the insurance company will determine whether or not you need to have proof that the person was a roommate in your home. A lease should always be drawn up for a roommate agreement as standard practice for your own protection.

If the roommate is related to you, it is still a very good idea to have them purchase a renters insurance policy. You want to make sure every situation is covered.

These are just a few suggestions when considering taking on a roommate in your home. Consulting an independent insurance agent or your insurance company will save you time and money in the event something happens. Being proactive is the best way to approach any situation, and putting the safety of you and your tenants is first.

Having home insurance is necessary to ensure the protection of your home. If you are ever in a position where you feel the need to switch your insurance company for one reason or another and have your payments deducted from an escrow account, there are certain steps you have to take to make sure your insurance does not lapse during the process. Quite a few people think escrowing your insurance payments will cause problems if you ever need to switch. This is not true if you know what you are doing.

Can I cancel mid-term?

As a homeowner, yes you can. First, contact your mortgage lender to see if they can make payment to the new insurer, refunding the old insurer to balance out your account. Depending on the circumstances, you may be in the position where you will have to make that payment to the new insurer yourself and use the refund to replenish your account.

Getting the information from your home insurance company directly on how to complete the process will help. If you choose to have your mortgage company make your payments, escrowing your funds is a necessity and not an option. Take the time to speak to an independent insurance agent like Don Allred Insurance to ensure there are no missteps which could leave you financially liable. An independent agent can also help you find an insurance company that will meet all your needs to prevent having to switch carriers again.

For the best information that will help you make an informed decision, go to your trusted independent agent. Contact an associate at Don Allred Insurance today to get the results you need!