Real Estate

Tenant insurance: do you make each tenant get their own or is one sufficient?

  • Last Updated:
  • Jun 16th, 2019 10:51 pm
[OP]
Member
May 23, 2017
334 posts
146 upvotes

Tenant insurance: do you make each tenant get their own or is one sufficient?

I will soon be renting out a house to a group of several unrelated people (not students). Wondering how I should proceed when it comes to tenant insurance?

I have always made tenant insurance mandatory for all my tenants, but previously have only rented to families so obviously only needed one tenant insurance per property. This is the first time I'm renting to unrelated people. I did specify on the lease that I will be collecting rent from one main tenant, and all utilities will be under his name (so he will have to deal with collecting rent/utilities from the other tenants instead of me), however everyone has their name on the lease.

Should I ask each person to get their own tenant insurance or is it enough for the main tenant to get it?
4 replies
Deal Addict
Oct 25, 2008
2263 posts
273 upvotes
North York
Ideally, each tenant should have their insurance policy. i.e a theft on tenant A will be covered by A's policy, negligence on A will be covered by A's policy. This way, the liability is on several basis.

However, if they so choose they can be co-applicants in the main tenant policy (however, make sure that they are both on it).
Last edited by Ethan15 on Jun 16th, 2019 10:46 pm, edited 1 time in total.
[OP]
Member
May 23, 2017
334 posts
146 upvotes
Ethan15 wrote:
Jun 16th, 2019 10:42 pm
If the main tenant gets it then ensure that they are both co-applicant in the insurance policy.
Is that possible? I was under the impression that usually insurance policies will not just add a "roommate" to your policy, they have to be a family member (at least when I used to get tenant insurance, I don't think I could've just added my roommate).
Deal Addict
Oct 25, 2008
2263 posts
273 upvotes
North York
jk9088 wrote:
Jun 16th, 2019 10:45 pm
Is that possible? I was under the impression that usually insurance policies will not just add a "roommate" to your policy, they have to be a family member (at least when I used to get tenant insurance, I don't think I could've just added my roommate).
Some insurance policy allows it. If not then they have to get individual policies (Which is more ideal / easier / straight forward, although cost a little more)
[OP]
Member
May 23, 2017
334 posts
146 upvotes
Ethan15 wrote:
Jun 16th, 2019 10:47 pm
Some insurance policy allows it. If not then they have to get individual policies (Which is more ideal / easier / straight forward, although cost a little more)
Thanks--I will ask if he is able to add the roommates to the policy.

What are the dangers in not getting everyone's name on the policy? For the liability part, it should be covered even if just one person's name is on it, right? I know for contents insurance, obviously only the main guy will be covered, but it's not really my concern if the others want to take the risk of no contents insurance right? (Or can they come after me to pay for their contents if something happens?)

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