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Renters Insurance For College Students

Renters Insurance for College Students

Renters Insurance Should Be Considered For College Students Living on Their Own
College students renting an off-campus apartment or house while away at school 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 may not be covered. 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 protects your personal property against damage or loss, and insures you in case someone is injured while on your property. If you live in a rented apartment, house or condominium, your landlord’s insurance does not cover your personal property in the event that it is stolen or damaged as a result of a fire, theft or other unexpected circumstance.
College students living in off-campus housing are ideal candidates for needing renters insurance, since many students bring thousands of dollars’ worth of personal items, such as electronics, a computer, textbooks, clothes, furniture, and a bicycle, with them to school. It is the renter’s responsibility to provide coverage for these valuable items.

Basic Options
Most renters’ insurance policies provide two basic types of coverage: personal property and liability. Personal property coverage pays to repair or replace personal belongings if they are damaged, destroyed, or stolen. This is the most commonly purchased renters’ policy. Liability insurance 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
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 fi ve 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 agent 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.

Article Courtesy Of: Fairmont Farmers Mutual Insurance Company

Investment and Insurance products:

  • Are Not Insured by the FDIC or any other federal government agency
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Do I Need Renters Insurance in College?

renter-insurance-in-college

Updated: July 2016

When you’re packing for college, you may be thinking about your class schedule and late night pizzas with friends. Someone making off with your laptop or a dorm fire are probably not what you’re envisioning about the campus experience. But since you may be bringing some expensive stuff with you — a television, speakers, clothing and a smartphone — it’s a good idea to make sure these things are protected before you leave home, just in case.

Whether you’re living in the dorm or an off-campus apartment, it’s important to have coverage for all those things that help you keep up with classes and make your living space feel like home. How to help protect your stuff, though, typically depends on where you’re living.

Dorm Life

If you’re living in a dorm or other campus housing, your belongings may be covered under your parents’ homeowners or renters insurance policy. You’ll want to check with your agent to make sure, but the National Association of Insurance Commissioners (NAIC) says that students who are younger than 26 and living on campus may be covered through their parents’ policy.

It can be a good idea to know the policy’s coverage limits for personal property. The Insurance Information Institute(III) says some policies limit coverage for belongings while they are away from the policyholder’s home. This is often referred to as “off-premises coverage.” For example, if your parents’ policy provides $100,000 worth of coverage for belongings, but limits that coverage to 10 percent for items that are off-premises, it may provide up to $10,000 for items away from their home, including belongings you bring to school.

It’s also important to note that certain items, such as a laptop, may have coverage limits. If the policy’s limits aren’t enough to cover the items you’ll be bringing to school, the III says your parents may be able to add scheduled personal property coverage, sometimes referred to as a “floater,” to their homeowners or renters insurance policy to help cover certain valuable possessions.

Off-Campus Housing

If you’ll be living in off-campus housing, the III cautions that your parents’ insurance will probably not extend to any belongings you bring with you (although you’ll want to check with your agent to be certain). Your own renters insurance policy may be a good way to help protect your belongings should they be stolen or damaged by a covered loss. (Covered events are often described as “perils” in insurance terms. Read your policy to learn what risks it may cover, such as theft or fire.)

A renters policy will also likely provide liability coverage, which may help prevent you from paying out of pocket if you are found legally responsible for someone else’s injuries or accidental damage to their property (including your landlord’s).

The III recommends asking your agent about coverage limits, as well as whether you may benefit from additional coverage for certain valuables.

Hopefully you and your stuff stay safe and sound while you’re running to and from classes, but it may be a good idea to keep a home inventory — it can be a big help if you ever need to file a claim. Knowing you have coverage for your stuff can bring some peace of mind and help you focus on a great college experience.

Article courtesy of: http://www.allstate.com

 

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