Are you a college student? Or a loved one of a college student?
Be sure that they are covered as they leave for school!
College students living away at school in dorms or off-campus rentals should consider purchasing renters insurance to protect their personal property, such as a computer, television, stereo, bicycle or furniture, in the event that it is damaged, destroyed or stolen.
Even if a student is a dependent under his or her parent’s insurance, the student’s personal property, in many cases, is not covered if the student lives away from their parents. Parents should check their policy or contact their insurance agent to see if renters insurance is right for their son or daughter who is away at school.
What is renters insurance?
Renters insurance coverage protects your personal property against damage or loss, and insures you in case someone is injured while on your property.
Why Purchase Renters Insurance?
College students living in off-campus rental housing or dorm housing are ideal candidates for needing renters insurance, since many students bring thousands of dollars worth of personal items along with them. Students typically bring electronics, a computer, textbooks, clothes, furniture, and a bicycle to school with them. The value of those items all together is high, and would be hard for a student to replace in the event that it is stolen or damaged as a result of a fire, theft or other unexpected circumstances.
In a renter/landlord relationship, it is the renter’s responsibility to provide coverage for these valuable items. In school dorms, personal property is typically not covered- however checking the school policy is important. Personal property coverage can extend from a parent’s homeowners policy, so reviewing coverage is an important step.
Premiums for this type of coverage are usually very low- between $15-30 a month on average depending on the carrier, size of the unit, location, and policyholder’s possession value.
It is a low price to pay for peace of mind.
Basic Coverage offered for Renters Insurance
Personal Property Coverage
This covers the costs to repair or replace personal belongings if they are damaged, destroyed, or stolen. This is the most commonly purchased renters policy.
Expensive items, such as fine jewelry or a large amount of technology, may require the renter to purchase additional coverage. When choosing a policy, it is important to keep in mind the value of the items that will be in the rental property and check that the limits would cover replacing them.
Liability Insurance Coverage
This provides coverage against a claim or lawsuit resulting from bodily injury or property damage to others caused by an accident while on the policyholder’s property.
Shop for the Right Coverage- MCIA Can Help
Another important factor to look for when shopping for renters insurance is “actual cash value” vs. “replacement cost” coverage.
Actual cash-value coverage will reimburse the renter for the cost of the personal property at the time of the claim, minus the deductible. It’s important to account for depreciation when considering this coverage option. For example, if a stereo system were stolen from an apartment, five years after the stereo was purchased, the policyholder would be reimbursed for the current value of the system.
Replacement cost coverage, on the other hand, will reimburse the full value of the new stereo system, after you purchase the new system and submit your receipts. While the up-front cost is greater, you are more likely to receive accurate compensation for your possessions.
Parents’ Homeowners Insurance
As a parent with your own homeowners policy, you may want to contact your homeowners insurance company and ask if your child will be covered while they are away at school. Some companies might still cover your child’s belongings under your policy depending on their age and student status. However, you will still be responsible for your deductible under your policy.
Other Points of Interest Regarding Renters Insurance
When a claim is reported, the insurance company will ask the policyholder for proof of purchase for all items reported on the claim. A comprehensive list of possessions, including purchase prices, model numbers and serial numbers, will suffice. It also is a good idea to take photos or video footage of any personal possessions for documentation, making sure it is stored in a secure, off-site location.
When determining how much, if any, renters insurance you should purchase, estimate the value of your personal possessions. This is the amount of insurance you will need to replace the contents of your home if everything were destroyed.
If a college student is living in an off-campus house or apartment with one or several roommates, they may be able to purchase a renters insurance policy together. Some policies automatically extend coverage to any resident of a policyholder’s household who fits the definition of a “domestic partner.” Otherwise, consider carrying separate coverage for each of the adult tenants.
One of the smartest things you can do as a renter is reduce the chances of needing to file a claim altogether by requesting that the property owner install an anti-theft or safety device inside the rental property.
In all cases, it is recommended to reference your current insurance policy or contact your agent when deciding whether or not to purchase renters insurance for a student away at college.
