Tuesday, September 27, 2022

Do College Students Need Renters Insurance

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Why Does My College Student Need Renters Insurance?

If a student lives off campus in a non-school affiliated apartment or house, typically most landlords will require the student to acquire renters insurance as part of the lease agreement. Thats because the landlords insurance usually only covers the building, not the tenants possessions.

Even if renters insurance is not required by the lease, it can still be a very smart choice. Purchasing a renters insurance policy for a student who lives off campus is simple to do and relatively inexpensive.

When Dont College Students Need Renters Insurance

Of course, there are situations in which purchasing renters insurance simply may not make sense. For example, students attending college who commute from homes they share with their parents will not need renters insurance because they are already covered under their parents insurance policies.

This also usually applies to students who live on campus in dorms or other school-affiliated housing, as they may still have coverage under their parents homeowners insurance policies. Its important for students and their families to check the details of their existing insurance policies to ensure adequate coverage can be provided. Even if students dont need renters insurance, it might be appropriate to get insurance endorsements for specific items that exceed policy limits.

Finally, anyone living in a temporary housing situation for instance, crashing on a friends couch, in an Airbnb rental or in a hotel room is not eligible for renters insurance. Typically, the host is responsible for obtaining short-term insurance for these situations, and some insurers sell specialized short-term policies to guests in these situations.

Do College Students Need Renters Insurance

In general, we strongly recommend that college students have insurance or some kind of financial protection on their property. You may not seem to have many personal belongings, but their value can add up quickly. A laptop, software, television, art supplies, jewelry and other belongings can easily reach thousands of dollars.

College students usually have little money saved in the event of an emergency, so losing your possessions would be especially devastating if you can’t afford to replace your belongings. However, a student who has renters insurance would be able to file a claim and only have to pay a deductible to replace their personal property.

The most important considerations are whether you live on or off campus and whether you are protected by your parents’ homeowners or renters insurance policy.

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Why A College Student Needs Their Own Renters Insurance Policy

You might not have much, but what you do have is essential and challenging to replace.

For example, what happens if your laptop gets stolen from your dorm room or a café?

Its unlikely that you have an extra $1,000 lying around to buy a new one. However, your insurance policy can replace it promptly.

If tragedy strikes and you lose everything you own, then it can be incredibly expensive to start over.

Renters insurance can help you get back on your feet and replace the essentials.

With policies starting at just $5 a month, theres no excuse not to have some protection.

Coverage For Your Roommate

Do college students need renters insurance?

Your roommate wonât automatically be covered by any kind of renters insurance you get. Thatâs standard for any renters insurance policy regardless of whether itâs an extension of your parentsâ policy or one you bought for yourself.

If you have your own renters insurance policy, youâll have to add your roommate to it for them to receive protection, and your premium will increase slightly to account for the additional coverage. Otherwise, your roommate will have to get their own renters insurance. If your roommate isnât covered by insurance and you are, and thereâs a fire in your apartment that destroys everything in it, insurance will only cover the items that belonged to you, leaving your roommate left to pay out of pocket for their losses.

If youâre still living in a dorm, and you have insurance coverage via an extension of your parentsâ policy, your roommate canât be added to the policy.

Need coverage?

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Insurance Options When You Live In A College Dorm

Like we said, when you live in a dorm, your insurance options are:

  • Staying on your parents insurance policy
  • Buying dorm insurance
  • Buying renters insurance

Your parents insurance

If you live in a dorm or on-campus property, your valuables might be partially or fully covered under your parents homeowners or renters insurance, as long as youre a full-time student.

Some homeowners insurance policies have age limits

Your parents homeowners insurance might only cover you up to a certain age , after which you need to buy your own insurance. Review your policy for details.

You might be fully covered, but its also possible that youll receive about 10 percent of your parents total personal property coverage. For example, if their insurance covers their belongings up to $100,000, the policy would cover yours up to $10,000. The details of your coverage depend on the terms of your parents policy.

Be sure to check your parents homeowners insurance and determine the extent of your coverage. If it isnt sufficient, you should look into buying your own insurance plan.

Dorm insurance

Because your parents insurance has coverage limitations, a dorm insurance policy can be a worthwhile investment.

Dorm insurance is designed to reimburse you or replace your possessions when theyre lost to a covered peril. Its usually quite affordable depending upon the plan you choose, your payments could start at $5 per month. Deductibles can run as low as $25.

Renters insurance

What Is Renters Insurance

Renters insurance, also known as HO-4, protects your belongings from damage or theft. A renters insurance policy is broken down into three essential components:

  • Personal property coverage: Protects your belongings from a covered peril event such as a fire, loss, or theft.
  • Personal liability coverage: Protects you against a lawsuit or claim if you accidentally hurt someone or someone is hurt in your home.
  • Loss of use coverage: Pays for temporary housing and meals while repairs are made if your home is deemed inhabitable due to a covered peril.

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Does My Homeowners Insurance Cover College Students

Yes, students are typically covered by their parentâs home policy, provided theyâre in an on-campus residence or dorm room. On-campus residence is considered a temporary situation, so you should still be listed as a primary resident of your parentâs home. Keep in mind that every insurer is different, so you should speak with your provider to make sure. There may be limitations, such as a maximum age, full-time enrollment, or coverage amount. You may also want to add a homeownerâs insurance rider or add-on to add coverage for the extra contents youâll be insuring.

But, arguably, it makes more sense to get the student their own tenantâs insurance for two reasons. First, if the student makes a claim, it could cause yourhome insurance rates to increase. The second being when your child moves out into a house with friends or gets an apartment, they will need their own renterâs insurance. In other words, your home insurance will no longer cover the university student.

Dorm Insurance And Personal Property Coverage

Does my student need renters insurance?

Since dorm insurance policies are designed for personal property claims, they tend to have small deductibles â generally under $100.

Renters insurance policies deductibles vary, but many people choose higher deductibles to keep their premiums low, meaning that if a single item is stolen, the deductible payment, which could be $500, cuts into the reimbursement amount.

Dorm insurance policies also tend to be more lenient than renters and homeowners policies in terms of when they cover property. While renters insurance and homeowners insurance only cover property damaged in by covered perils named in the policy and typically exclude damage from flood and earthquakes, many dorm policies cover property regardless of the reason it was damaged. In fact, dorm insurance even covers property if you lose it or if you accidentally break it yourself, neither of which are ever covered by renters insurance.

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Renters Insurance For College Students Off Campus

If you rent an apartment to live off campus, your parentsâ coverage may not extend to a new apartment. Youâll have to get your own renters insurance policy. Luckily, renters insurance is relatively inexpensive, even for college students. You can expect to pay between $180 and $190 per year for coverage.

Renters insurance for college students who live off campus is identical to renters insurance for everyone else. Youâll get all the protections for personal property, liability, and alternative accommodations. Youâll be able to adjust how much coverage you need to reflect the property you own as an underpaid work-study employee.

As with other renters insurance plans, renters insurance for students who live off campus may have coverage limits as well as lower sublimits for specific categories of items.You may need to buy more coverage than your basic offerings if you want protection for expensive possessions like your laptop or smartphone.

What Will Renters Insurance Cover

Your renters insurance policy will specifically call out what perils are covered in the event of a loss. Its important to note that if its not listed, its not covered, so if youre seeking a specific type of protection, talk to your insurance agent about a supplemental policy for that peril. Flooding and earthquakes, are not covered under your renters insurance policy therefore youll need to purchase separate policies for such coverage.

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Doesnt My Homeowners Coverage Offer Some Protection

Homeowners coverage will extend liability coverage to students staying in a college dorm room, but not if they are renting a separate apartment. Similarly, most homeowners policies will extend some limited property coverage for contents while staying at a temporary location, like a dorm, but this also wouldnt apply to the contents of a rented apartment.

The Pros And Cons Of Relying On Homeowners Insurance

Do College Students Need Renters Insurance?

Do you have a homeowners policy that offers protections for college students? If so, there are many benefits of taking advantage of that coverage rather than buying a separate renters policy for your student.

  • You dont have to pay extra for a second policy
  • There will be no confusion over which policy applies in the event that you need to make a claim
  • You continue to enjoy coverage with a provider and policy you are familiar with and trust
  • If you have already made payments toward your deductible, they will reduce your out-of-pocket costs in future claims

Relying on your homeowners policy can have disadvantages as well, however.

  • Your policy may not offer the extent of coverage that you need in the event of theft or other losses
  • You may face a separate and higher deductible for incidents involving your student
  • You may run into unexpected and expensive coverage gaps depending on the circumstances
  • Filing and documenting claims may be challenging if your student is going to college far away but the policy is in your name

How much coverage you need and whether or not your existing policy is enough depends largely on your personal circumstances.

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How Do I Get Renters Insurance

Honestly, getting renters insurance can be a hassle. And lets face it: Youll want to spend less time with your insurance company, and more time living it up with your friends .

One thing to know: Even if your parents are paying for your renters insurance , you still need to be the one to sign up for the policy. Weve got a bunch more info about all of this in our parents guide to renters insurance, so be sure to share it with your folks.

The process itself is a breeze. Instead of calling up a traditional insurance agency and waiting on hold, you can get renters insurance online with Lemonade in less than 2 mins.

With Maya, our charming artificial intelligence bot, getting a quote is fast, straightforward, and can be done right from your desk . Just answer a few questions, and youll get a quote in less than two minutes.

Plus, Lemonades claims process is easy, too. As Lemonader Avery told us:

After my backpack was stolen, I immediately filed a claim with Lemonade. After ten minutes, I was approved and had a money transfer on the way. I filed the claim entirely from the app and it was very straightforward. If it wasnt for Lemonade, I would have no idea where to start with filing a claim through my parents traditional insurance company.

To take Lemonade for a spin in under 2 minutes. Then, go party!

Is Renters Insurance For College Kids Worth It

Purchasing renters insurance for college students has its own pros and cons. It can be beneficial in that:

  • It tends to fully cover personal property, liability, and living expenses, giving you peace of mind
  • Your coverage limits will be clearly spelled out, preventing gaps and unwelcome surprises
  • You may be able to secure a low-cost policy if your students roommates and their families chip in as well
  • Students can file claims and documentation themselves in the event of an incident
  • Co-purchasing a policy with your student can teach them key life skills
  • Dual coverage under renters and homeowners policies ensures you are fully covered no matter what

But separate renters policies for students are not without their drawbacks.

  • They add extra costs to already-expensive undergraduate educations
  • They may need to be replaced or adjusted each time your students living situation or roommates change
  • Claims made by your students roommates show up in your insurance claim history which can be detrimental if there are large or numerous claims
  • You may need to juggle claims between the renters and homeowners policies if something happens
  • Buying a policy that covers your student can be pricey depending on where your student lives while in school

While it can be a relief to have your coverage spelled out in a separate policy and know that you will be covered, it is important to weigh the costs and benefits to determine how valuable such a policy will actually be for you.

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Best Renters Insurance Quotes Available Online

There are our top 3 picks for the best renters insurance option. Each one is based on your own personal situation. These options might not be the best for everyone, especially if you can get a multi-policy discount with your current insurance company.

Note: The insurance offers that appear on this site are from companies from which The College Investor receives compensation. This compensation may impact how and where products appear on this site . The College Investor does not include all insurance companies or all insurance offers available in the marketplace.

1. Lemonade

Is Insurance Beneficial To College Students

Do I Need Renters Insurance In College? | Allstate Insurance

As a college student, its impossible to live the lifestyle you truly desire. Youre always juggling your finances to cover the cost of housing, books, tuition, meals, entertainment, and other expenses. So how is it beneficial to add another bill to your plate?

Renters insurance is up to your discretion, but its always smart to err on the side of caution. With your finances already strung out, its more important to protect what you already own than hope for the best.

Think about it this way: If someone were to break into your rental today and steal every valuable thing you own, how much money would you lose? Probably thousands of dollars. Could you replace everything without it hurting your bank account? Probably not. For a fraction of that price, you could get renters insurance, which is designed to protect your finances when the worst-case-scenario becomes a reality.

At Freedom Insurance Group, were happy to help college students pick the best policy for their needs. In fact, we even offer student discounts on auto insurance for Philadelphia college students who maintain good grades throughout their continuing studies. We do everything we can to ensure college students are not burdened with more bills than necessary. Contact us today to learn more.

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What Does Renters Insurance Cover

Even a basic renters insurance policy typically provides college students with coverage in three main areas:

Its also important to understand what renters insurance doesnt cover. Insurers often limit the protections offered in known earthquake and flood zones, due to their inherent risks. Also, expensive items such as some jewelry and electronics are usually subject to individual coverage limits. However, add-on policies, called floaters or riders, may be purchased to provide extra protection in areas that a basic policy might not cover.

Biggert says its also important to know exactly what an insurance companys theft protection entails. Understand that theft, which usually comes with some sign of forced entry into your home, is covered, Biggert says. What is not usually covered is what the insurance industry calls mysterious disappearance. There is a whole separate type of policy, called a personal articles floater, that will pay if one of your valuables is just gone. An example would be someone who wears an expensive wedding ring or watch into the ocean, and when he or she gets out, its gone. Thats not theft because nobody broke into your home and stole it its just mysterious disappearance. Ask about these things, so you dont learn the hard way once your valuable is gone.

Shopping Around For Coverage

Finding a renters insurance policy that fits a students particular needs can take a bit of time and research. Talking with a range of providers and comparing policies can help students and their families make sure they get the right coverage for them. Take advantage of free quotes as a cheap and easy way to make some basic policy comparisons.

I recommend an independent insurance agent, Biggert says, because they have access to numerous insurance carriers and can give you an idea of who has the best pricing and terms in the specific area where you live.

When shopping around, students should make sure they have a full understanding of policy coverage because not all renters insurance coverage is the same. Ask about exclusions and limits, and find out whether add-ons are needed for specific items. Considering the overall value of a policy or the amount of coverage you get for the price, rather than just the premium, can help students make more accurate comparisons between various renters insurance policies. Students should think about their practical needs, too, to avoid paying extra for coverage they may not actually need.

Also ask agents about how much liability coverage is included in their policies. Biggert recommends a personal liability limit of at least $500,000.

National Association of Insurance Commissioners via the Insurance Information Institute.

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