Cohabiters Have Unique Insurance Coverage Issues

Homeowners & Condominium Owners Insurance

Insurance companies have made it easier for unmarried couples to purchase a homeowners policy together, which wasn’t always the case. However, if only one partner owns the home/condo, the other partner’s possessions and liability are not covered by the home policy.

In this situation, there are two solutions:

1. Add your partner to the policy as a co-occupant or
2. Have your partner buy a renters insurance policy.

We can help you determine which option is best for you. The value of possessions adds up quickly, and everyone should have liability protection.

Renters Insurance

If you rent, your landlord’s insurance does not protect your possessions or liability. You need a renters insurance policy. Some companies will cover both unmarried partners under one policy; others require separate policies. Roommates should each have their own renters policy. An additional benefit is that renters insurance can qualify you for auto insurance discounts.

Auto Insurance

Drivers—Automobile policies have particular language outlining who must be listed as a driver for coverage to apply. Whether you are a couple/family or simply roommates, you must ask, “Do you allow each other ‘regular use’ of your vehicle(s)?” Regular use doesn’t mean daily or weekly use but applies to any patterned monthly or allowed usage. If you are in doubt, it’s better to be safe and list each other as drivers. You don’t want a claim and coverage questioned or denied because you didn’t address appropriately listing drivers.

Discounts/Savings—If an unmarried couple owns multiple vehicles jointly, you may save money by having one car insurance policy and qualifying for a multi-car discount. Another issue to remember is that to qualify for a home/auto multi-policy discount, a vehicle must have the homeowner’s name on the vehicle registration.

Umbrella & Life Insurance

For additional liability protection, unmarried couples should consider a personal umbrella policy. If you rely on each other financially and have children, ensure you have sufficient life insurance. Remember that insurance is a crucial element if you’re doing financial planning.