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, and even a guitar in the event that it is damaged, destroyed or stolen.
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 even guitars, with them to school. It is the student's responsibility to provide coverage for these valuable items.
If a college student is living in an off-campus house or apartment with one or several roommates, a renters insurance policy is a must. Each of the roommates must get his or her own policy. One policy does not cover the entire apartment (or frat house) ~ it only covers the policy holders possessions.
The premiums for renters insurance average between $10 and $30 per month depending on the location and size of the rental unit and the policyholder’s possessions.
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, stolen, or even destroyed .
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 your guitar was accidentally damaged, five years after the guitar was purchased, the policyholder would only be reimbursed for the current value of the guitar.
Replacement cost coverage, on the other hand, will reimburse the full value of the new guitar, after you purchase the new system and submit your receipts. While the up-front cost may be slightly more, you are more likely to receive accurate compensation for your possessions. This is the best coverage.
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, typically between $10,000 and $30,000. This is the amount of insurance you will need to replace your stuff if everything were destroyed, say ~ by a huge a party of some kind.
- lock your doors
- secure items of value from harm
- leave valuables at home when going out
- if it is irreplaceable you may want to, again, store it in a secure, off-site location
In all cases, it is recommended to call an independent insurance agent when purchasing renters insurance for a student away at college.
We have several companies to choose from.