Why Would I Need Renters Insurance if I am in College?

Whether college students need the protection of renters insurance depends on where they live if they move out of their parent’s house. College students and parents often assume that the student’s personal belongings in a college dormitory, apartment, fraternity or sorority house are covered by the parents’ homeowner’s insurance policy.

  • If your child lives in a dorm, your homeowners or renters insurance policy may extend to cover their personal belongings. Most policies limit a student’s coverage to 10% of the parent’s coverage. For instance, if your homeowner’s insurance policy has a personal property limit of $100,000.00 your child’s possessions will be covered up to $10,000.00 after the deductible. Be sure to check the provisions of that policy, because you will most likely not be sufficiently covered unless you have coverage for your personal possessions.

  • College students leave for school with an assortment of valuable personal possessions. In addition to clothing, furniture, bicycles, back to school supplies and text books, many will also be bringing expensive personal electronics, cameras, musical instruments and sports equipment. It is very common these days for students on campuses all over the country to be bringing thousands of dollars of personal possessions with them to college.

Have you ever tried to add up to costs of your child’s personal possessions that he/she will take to college? Try it, you will be surprised how much it will add up to be! Be sure to add up the small things also. Imagine if you had to go out and replace everything due to an unfortunate circumstance such as a fire or a theft! Imagine having to replace just the computer?

With the high cost of tuition, students or their parents do not want to have to pay to replace personal property due to theft, fire or another misfortune.

Then there is the liability issue.

  • Personal liability protection covers accidental bodily injury and property damage. For example, if a visitor in your home is accidentally injured and sues you for damages, personal liability insurance protects you against financial loss up to your policy limit. It can also help protect you against a claim or lawsuit.

Depending on your coverage options, a renter’s insurance policy covers your personal items lost due to: theft, fire, smoke, vandalism, lightning, windstorms and hail. Some policies provide liability coverage in the event a visitor was to be injured or their property damaged while in your home. Some policies cover living expenses if you’re forced to live elsewhere due to a covered loss.

The two basic types of renters insurance are actual cash value and replacement cost coverage.

  • Actual cash value pays the cost to replace your items minus the depreciated value.

  • Replacement cost coverage reimburses the full amount you paid for the items. Replacement cost coverage is typically going to lead to higher renters insurance rates, but pays out more if you need to file a claim. If you own unusually expensive items, you will want to purchase additional coverage, called a rider or floater.

It is highly suggested that college students should consider buying a renters insurance policy. Renters Insurance is VERY affordable.

This article is for informational purposes only.

For further information contact Motz-Rusin Insurance Agency in Palm Desert at 760-564-3888 or go to www.MotzRusin.com

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