College students who have already purchased laptops, textbooks, and other campus supplies may want to add something else to their list. It’s rental insurance.
Insurance helps pay for personal property stolen or damaged due to accidents such as cooking fires. We provide liability coverage to cover medical and legal costs if someone is injured in your home or someone’s property is damaged. There is also insurance that covers hotel and meal costs if accommodation becomes uninhabitable due to a disaster.
Students may think they don’t have many tools, but changing clothes, furniture, and electronics adds up. A stolen backpack containing laptops, tablets and textbooks could easily add up to $3,000, says the co-founder and managing director of his GradGuard, which sells student rentals. says John Fees.
Students living in dormitories may be partially covered through their parents’ homeowners insurance, said Loretta Waters, a spokesperson for the Insurance Information Institute, an industry group. However, this “off-site” coverage is often less than the homeowners insurance benefit limit (eg, 10%). If the insurance covers her belongings up to $100,000, the dorm room coverage will be her $10,000.
“Where else, you might not have coverage as comprehensive as this,” said Karen Collins, vice president of personal insurance for the American General Insurance Association, a trade group.
Some homeowners policies don’t automatically include student housing, so it’s best to check coverage, Fees said. Homeowners’ insurance often has higher deductibles (the amount that is deducted from claim payments) than renters’ insurance, he said.
Some colleges and universities may require students to have insurance as part of their campus housing contract. Also, many property owners who rent off-campus housing are requiring students to purchase coverage, said Alexandra Alvarado, director of marketing and education for the American Association of Apartment Owners, which serves landlords. said Mr.
“The landlord insures the property itself, but that doesn’t include the tenant’s property,” she said.
If you have a rental contract, you are often covered if your belongings are stolen from your home. Alvarado recalled that a laptop was stolen from his car while he was in college and replaced under the renter’s policy.
Tenant policies do not cover everything. Your policy may protect you if someone trips in your apartment and hurts you, but not if a guest intentionally puts a hole in the wall.
According to the Insurance Information Institute, the average annual premium for renters in 2019 was $174. Some policies have lower costs. Online insurance company Lemonade offers basic insurance starting at $5 per month.
Coverage details may vary by state and insurance company. Make sure the maximum benefit of the policy is high enough to cover your property. Always check if it is listed. The policy wording can be confusing, so ask questions if you don’t understand something.
Students who have items that exceed policy coverage, such as special computer equipment or musical instruments, may be able to add them for an additional fee, Worters said.
Tenant policies typically cover flood damage caused by a malfunctioning sprinkler system or rain entering through a damaged roof, but typically do not cover flood water coming from the ground. for that purpose, flood insurance policy.
Flood frequency sprinkler system accident? “I wouldn’t say it happens often, but when it does, it’s serious,” said Josh Gana, director of facilities and physical environment for the Association of College and University Housing Officers-International. increase.
Students could accidentally activate the sprinklers by hitting a ball around the room or hanging something on the system fixture, he said. Sprinklers can damage other student property.
After a deadly fire in Seton Hall College’s dormitory in 2000, more colleges installed fire suppression systems, Fees said. In 2020, about 1,200 fires broke out in on-campus housing, according to the University of California. federal data.
Here are some questions and answers about insurance in college.
Will my renter’s policy cover my roommate’s?
No. Some insurers may add roommates to policies for slightly higher premiums, said Waters. If not, a different policy will be required for roommates to receive compensation.
If I drop my laptop, will rental insurance pay for the repair?
Unlikely. Tenant policies typically cover laptop theft and damage or destruction due to fire or other “hazards.” However, it does not cover cases where the device is dropped from a desk and the screen is cracked.Special laptop plans offered on some Insurance company Coverage can also be provided by the device manufacturer or through extended warranties or service contracts. consumer report However, the cost was on par with the repair cost, so the extended computer warranty offered little benefit.
Can I get a discount on car insurance if my student is absent from college?
Car fares are usually higher for teenagers. But if students are far away and aren’t driving, check with your insurer, as it may be cheaper, said the vice president of auto and property insurance at the Property and Casualty Association of America. One Robert said his Passmore.
