Students living off-campus while away at college should strongly consider purchasing renter’s insurance to protect their personal property. Regardless if the rental property is a home, condominium, or an apartment, the landlord's insurance is solely for the protection of the landlord -- it does not protect the renter. Loss, theft, or damage to the student’s personal property, such as computers, televisions, stereos, and other property can be a significant setback for a college student’s finances.
What Renter’s Insurance Covers
College students renting property off-campus are a perfect example of the type of person renter’s insurance is best suited for. Not only is the policy designed to protect the students' personal property, but it provides liability coverage in case a visitor suffers an accident or injury while on a student’s rental property.
Students that are 25 years old or younger, attending classes full-time, and living on-campus, may be covered under their parents’ homeowners insurance policy. It is best to check with the parent's insurance agent to determine the extent, and the amount, the parent’s homeowner policy affords to a student away at college.
Basic Types of Property Insurance for College Students
Two basic types of property insurance that the student and parents should be familiar with are replacement cost coverage, and actual cash value coverage.
Actual cash value coverage provides for the value of the property at the time of its loss. For instance, a laptop computer that is two years old when it is stolen or lost in a fire, is only covered up to the amount it is worth on that day. After depreciation, and the amount of the deductible, the reimbursable amount will likely not cover even half the amount it will cost to replace the computer.
The premiums are usually cheaper for actual cash value property coverage, but the actual reimbursable amount should be taken into consideration before choosing this type of policy for a college student renter’s policy.
Replacement cost coverage, on the other hand, provides for the cost incurred to replace the property. While the premium for this type of insurance policy is higher, the actual value of the insurance is more in line with what a policyholder would expect to pay to be able to replace the property. For example, a three-year old stereo of a certain make and model may only be worth a third of its original value after depreciation, but with replacement cost coverage, the same stereo or a similar stereo can be purchased.
Keep a Detailed Inventory of Property for Insurance
To determine the appropriate amount of personal property insurance to purchase, take inventory of all the items the policy will cover via an itemized list. Document the make, model, serial number, and purchase amount of each item. This inventory list should be kept in a safe location for easy retrieval in the unlikely event that a claim is necessary.
It is a good idea to take pictures and or videos of the property for further verification of ownership for the insurance company. Insurers are never as anxious to pay out money as they are to take it in, so the more information and proof you can provide at the time of the claim, the more likely you can expect full compensation.
As with any financial decision, it’s best to do your homework before choosing a policy- or an insurance company- to purchase a policy through. Unless the agent is a family member, or a close friend of the family, always get a second opinion as to the appropriate amount and type of coverage before making a purchase.
Sources:
"Renters Insurance Should Top School Supply List," Oklahoma State University
“Saving Money on Your Insurance: Insurance Coverage for College Students,” Texas Department of Insurance
Damon Hildebrand - A part-time freelance writer, Damon is a certified maintenance reliability professional and industrial lubrication specialists. A licensed ...
