Renters Insurance for College Students
students leasing an off-campus apartment or house while away at school should consider buying renters insurance to protect their personal property such as televisions, furniture, stereos, or PCs from theft or loss. Even if a student is a dependent under their parent’s insurance, it is unlikely that their insurance will cover these losses. Parents are advised to double check their policy.
What Is Renters Insurance? Renters insurance protects your private property against damage or loss, and insures you in case someone is wounded while on your property.
How Much Does It Cost? The premiums for renters insurance averages between $15 and $30 a month depending on the location, rental unit size, and the individual policy holder’s possessions. Renters Insurance Options Most renters insurance plans provide two basic kinds of coverage : personal property and liability.
1. Personal property-Pays to correct or replace private possessions if they are damaged, destroyed, or stolen. This is the most commonly purchased renter’s insurance 2. Liability insurance provides coverage against a claim or court action ensuing from bodily injury or property damage to others due to an accident while on the policyholder’s property. Unusually valuable items such as jewelry may require further coverage. Another critical factor to have a look for when shopping for renters insurance is actual money value vs. Replacement cost coverage. Actual cash-value coverage will reimburse the renter for the price of the private property at the time of the claim, minus the deductible. It is important to account for depreciation when considering this coverage option. For instance, if a stereo system were nicked from an apartment, 5 years after the stereo was acquired, the owner of the policy would be reimbursed for the prevailing price of the system. Replacement cost coverage, on the other hand, will reimburse the full value of the new stereo system, after you buy the new system and submit your bills. While the up-front cost is greater, you are much more likely to receive accurate compensation for your possessions. Other important issues Make a detailed list and take photographs of possessions, including purchase prices, model numbers and serial numbers. This will determine the quantity of insurance you’ll need to replace the contents of your house if everything were wrecked. Research the possibility of sharing a renters insurance policy along with your roommates if you have them. Otherwise, consider carrying separate coverage for each of the adult renters.
It may decrease your policy premium if you install, or have the owner install, a security device within the rental property.
