Renters Insurance for College Students – Do You Need Renters Insurance?


Renters Insurance for College Students

renting apartment


Is renters insurance worth it for college students? An insurance policy is something that provides you cover against any kind of loss that you may incur during an emergency. This emergency could be natural or man-made. Having an insurance policy gives you an assurance that your life and valuables are taken care of in the most professional way. While policies on life insurance, home insurance, medical insurance and auto insurance are quite common, some like renters insurance are not known to many. Not many people think that this policy is important until they lose their valuables. Read on to know about the meaning of renters’ insurance, coverage offered importance to students and its various types.

What is Renters’ Insurance?

When you are living in an apartment on rent and a fire breaks out,  what do you do? You rush out with your family leaving your valuables at home. Your furniture, jewellery and other items may be worth of thousands of dollars, isn’t it? Your landlord has nothing to worry because he would have taken a homeowners’ insurance, which will cover his losses incurred due to the damage of his property. What do you get? Nothing, at all!  It is so scary to imagine this situation and you wouldn’t want it to happen even in your wildest dreams.

This is where a renters’ insurance comes as a blessing for you. It covers your loss against your goods damaged in any natural or man-made calamity in the property that you stay on rent. It reimburses you for the loss so that you can get on with your life. On an average the renters’ insurance policy costs just around $200 per year; therefore, it is worth taking one of these if you want your valuables protected even if you the tenant.

The bottom line is that you can cover $30,000 worth of possessions for roughly the cost of a large pizza.

The 3 Types of Coverage Offered by a Renters’ Insurance Policy are:

  • Personal Property – provides coverage for the tenant’s personal valuables from natural and man-made calamities.
  • Liability – provides coverage for the tenant when a guest gets injured in the property and files a lawsuit against the tenant.
  • Additional Living Expenses – provides temporary housing and other amenities when property gets damaged to such an extent that the tenant cannot live there anymore.

Do College Students Need Renters’ Insurance?

You move to a different city to pursue your college degree. You stay in an apartment or hostel that is quite close to your college along with your roommate. You have brought your costly laptop, mobile and other gadgets along with you to be well-connected at your new place. One day, when you return from your college, you are devastated to see your apartment in a shabby condition because of a short circuit, the gas stove that was never switched off, a leaking tap that flooded your room or any other calamity. Your gadgets are destroyed; your books and clothes are in a mess! How scary does this situation sound to you? So scary that you wouldn’t want even your worst enemy to experience it, isn’t it?

If this situation doesn’t explain to you how important it is for college students to take a renters’ insurance policy, we don’t know what else will! If you are planning to stay in the same apartment with your roommate until you complete your college education, you both can share and take this policy so that it becomes more cost effective for you, than when you have to pay for it individually.

How to Shop for Renters’ Insurance

As a college student who is interested in purchasing renters’ insurance, you should have clarity on how you would like to be compensated when there is an emergency. There are two ways in which an insurance policy can pay you:

Cash value – As the name suggests, this is where the company reimburses you the original value of the item that was destroyed, after deducting charges like depreciation. There is a high chance that you might get only 50% of your claim in this method as the company could deduct a large sum towards depreciation and other charges.

Replacement value – This is where the company reimburses the full value of the damaged item after deductibles. There are no other charges deducted in this method and you are most likely to receive close to 90% of your claim amount. Naturally, when you opt for this, you should pay a higher premium.

Tips to Find the Best Renters’ Insurance

  • Ask your insurance agent – Ask your insurance agent about the best renters’ insurance policies available in your locality and choose the one that suits you the best – financially and operationally.
  • Ask your college – More often than not, your school will be able to guide you to get best deals on renters’ insurance as they would be associated with some of the leading insurance companies in that area.
  • Check online – Check for the latest renters’ insurance rates and terms online so that you have a fair idea of the market. Choose the service provider that offers you full value for your money.

Leave a Reply

Your email address will not be published. Required fields are marked *