One precaution that many college students historically have neglected to pursue is renters insurance. This is the case whether the student is attending a public college in a relatively low-crime area such as Athens, Ohio, or a big university in a major city such as Columbus, with a relatively high crime rate.
A typical college student may figure that getting ripped off is something that happens to other people, or that as a 21-year-old young adult they don’t own that much stuff to begin with. It might be worthwhile to take a quick inventory of your belongings, compile the overall value, then price what a basic renter’s insurance policy would cost. Find out if you can get a rider that covers your belongings added to your parents’ homeowners’ policy.
It’s important to realize, too, that most renters insurance policies cover loss of your belongings not just from theft but also fire, flood and other negative occurrences.
Inventory Your Belongings
Many students do own a variety of valuables, including laptops, smart-phones, video gaming systems, TVs and other electronics, plus jewelry, fine art, cash and other items. These are the sort of things that are attractive to would-be thieves, though furniture and clothing may also be expensive to replace.
According to various insurance websites, the average person is estimated to have around $20,000-$25,000 in possessions (though for college students, it’s likely much less than that). This should go without saying but it’s important to protect all of your belongings so you won’t have to dip into your savings if something is taken or damaged.
In most cases, renting an apartment or house is not like living in an on-campus residence hall or a private residence, where belongings are generally covered by a homeowners insurance policy. The landlord’s insurance only protects the actual property – not your valuables or the cost of temporary housing – and it doesn’t protect you in case of a lawsuit. If you’re a college student (in either Athens or Columbus), Take some time to investigate renters insurance, something that four out of five college and other renters do not purchase, according to research.
Most renters insurance policies can be had for less than a few hundred dollars annually, offering protection to valuables up to around $75,000, plus protection against personal liability. Consider your situation after a fire destroys or heavily damages your apartment in Columbus or your rental house in Athens. You’ll need to replace clothing, kitchen utensils, bedding, bathroom stuff, furniture, food, and many other household items. That adds up.
Tips for Protecting Your Stuff
When seeking to protect your apartment or rental house and choosing a renters insurance policy, consider these tips:
• Find out whether the renters coverage pays actual cash value or replacement cost. “Actual cash value” coverage will pay only for what your property was worth at the time it was stolen or damaged. This is due to depreciation, meaning your stuff isn’t as valuable now as it was when purchased. “Replacement cost” coverage will replace the item at current prices, and is obviously preferable if you lose belongings and the price-tag isn’t too high.
• Take advantage of a discount for multiple policies with the same company. Often insurance companies offer a discount when a person has multiple policies, such as car insurance, life insurance or renters insurance.
• Add extra protection for unique personal items with special value. While this tip probably applies more for adults who have had time in their lives to accumulate special valuables, college students may have some of these items as well. For expensive items such as jewelry, antiques, fine arts, sterling silverware and other collectibles, renters can add an “endorsement” that provides additional protection above the monetary limits of a traditional policy.
• Use a personal property inventory to keep a handle on personal belongings. This will be an immense help when filing claims. Keep a copy in a safe place outside the apartment or house. Insurance experts recommend that every renter and homeowner keep a personal property inventory. It helps to determine the approximate value of possessions, and as a result, how much insurance is needed to cover personal property.
• Shop around to compare insurance companies and find the best price for you before settling on an insurance company. Many college students just go with whatever company insured their parents, which may end up locking them into a policy and company more expensive than what they could have gotten elsewhere.
• The amount of renters insurance you should purchase differs from person to person, and as you might expect, will rise in cost with the amount of value that’s covered. On average, renters insurance costs around 15 bucks per month, covering thousands of dollars’ worth of possessions against a theft, fire and a variety of other possible negative occurrences.
• It helps to know what sort of policy you’re likely to get. A typical renters insurance policy is divided into separate coverage types. This is one common policy: $30K of coverage for personal property; $100K for personal liability; and 40 percent of personal property coverage for loss-of-use. Insurance specialists suggest getting $500 deductible coverage. That’s affordable for most people while keeping rates at a reasonable level. The lower the deductible the higher the rate.