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RENTERS INSURANCE FOR
COLLEGE STUDENTS | |
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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, in many cases, is not covered if the student
lives off campus. 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 the your property. Why
Purchase Renters Insurance? If you live in a
rented apartment, house or condominium, your landlord’s insurance doesn’t
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. However, if a
college student is under 26 years old, enrolled in classes and living in
on-campus housing, the student may be covered under his or her parents’
homeowners or renters insurance policy. The premiums for
renters insurance average between $15 and $30 per month depending on the
location and size of the rental unit and the policyholder’s
possessions. 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. Unusually
expensive items, such as fine jewelry or an art collection, may require
the renter to purchase additional coverage, called a “rider” or “floater”.
Your insurance agent can help you determine if additional coverage is
necessary. |
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, 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. Other Points
of Interest Regarding 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. |
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The National Association of Insurance
Commissioners Headquartered in Kansas City, Missouri, the
National Association of Insurance Commissioners (NAIC) is a voluntary
organization of the chief insurance regulatory officials of the 50 states,
the District of Columbia and the five U.S. territories. The NAIC’s
overriding objective is to assist state insurance regulators in protecting
consumers and helping maintain the financial stability of the insurance
industry by offering financial, actuarial, legal, computer, research,
market conduct and economic expertise. Formed in 1871, the NAIC is the
oldest association of state officials. For more than 135 years,
state-based insurance supervision has served the needs of consumers,
industry and the business of insurance at-large by ensuring hands-on,
frontline protection for consumers, while providing insurers the uniform
platforms and coordinated systems they need to compete effectively in an
ever-changing marketplace. For more consumer
information visit InsureUonline.org. |
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