As a college student, do I need renters insurance?

Every college student should think about getting renters insurance, although not everyone will require it. Whether you need renters insurance as a college student depends on several factors, including whether you reside on campus and whether your parents provide coverage. Here's how to evaluate if you need renters insurance in college and how to obtain cheap coverage.

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Is Renters Insurance Required for College Students?

In general, we strongly advise college students to have insurance or other financial protection on their property. You may not appear to have many personal belongings, yet their worth can soon build up. A laptop, software, television, painting supplies, jewelry, and other personal effects can easily cost thousands of dollars. College students typically have little money saved for emergencies, so losing your goods would be more devastating if you couldn't afford to replace them. If you have renters insurance, however, a student can file a claim and just pay a deductible to replace their goods. The most essential variables are whether you reside on or off-campus and whether your parent's homeowner's or renter's insurance coverage covers you.

On-campus Housing

If you are a student living on campus in a university-owned dorm room or apartment and you leave campus during breaks, you may not need to purchase a student renters insurance coverage. Because you still legally dwell in your parents' house, you are most likely covered by their homeowner's or renter's insurance policy. However, you should clarify with your parents' insurance company that you are covered by their policy. Even if your parents' renters insurance covers you, it may be worthwhile to purchase your policy. Homeowner's insurance policies are written with substantially higher limits than a college student's policy. A typical homeowners insurance policy may have a maximum payment of hundreds of thousands of dollars with a $1,000 or higher deductible—the amount you must pay toward a claim. It's also the bare minimum for which you can file a claim. If your $700 smartphone is stolen, your parents' insurance policy, which has a $1,000 deductible, will not cover you at all.

A renters insurance policy, on the other hand, often has a lower payoff of tens of thousands of dollars but a considerably lower deductible: roughly $100–$500. This means that a renters insurance policy will pay out on lesser claims and cover a bigger percentage of your losses.

If you frequently throw parties, especially if you serve alcohol, you should also consider renters insurance. Even if you reside on campus, you may be held legally accountable if someone is injured in your dorm, and renters insurance includes liability protection that will protect you if you are sued. Some institutions form alliances with certain renter insurance carriers to give coverage to their students. For example, the University of Southern California has a direct partnership with GradGuard to provide college renters insurance. It can be easier to get renters insurance coverage this way, but they rarely provide discounts—you may be able to save money by dealing with a different firm.

Off-Campus Living

If you reside off-campus in an apartment or house for which you have a contract, you should consider purchasing renters insurance—this also applies to off-campus fraternities and sororities. Because, unlike a dorm resident, you legally live in your apartment, you are unlikely to be protected by your parent's insurance. You are also more likely to face legal consequences than a college student who lives on campus. If you throw a party at your off-campus apartment and someone is wounded, you could be held responsible for their injuries. Renters insurance, on the other hand, is typically relatively inexpensive. You'll typically pay only $10–$20 per month for enough coverage to cover liability and all of your stuff. You may also be forced to purchase renters insurance, particularly if you reside in an apartment. Landlords frequently need them, particularly for residences rented to students, who are prone to greater wear and tear than other rental properties.

Dorm Insurance: A Low-Cost Option for On-Campus Students

Dorm insurance is a low-cost alternative to standard renters insurance for college students who live on campus. This sort of policy is known by several different names, including personal property insurance, student insurance, and personal items insurance. Dorm insurance is essentially only personal property coverage from a standard renters insurance policy, with liability and additional living expenses (ALE) coverage excluded. Personal goods insurance, on the other hand, often goes farther than standard renters insurance in one essential area: it covers accidental and flood damage. These are two of the most prevalent types of damage to cellphones, computers, and tablets, which are among the most valuable products a college student is likely to own. Renters insurance often does not cover repairs if you cause damage to your property by accident, such as dropping your phone and breaking the glass, or getting wet after falling into a swimming pool.

Personal property insurance typically has a lower deductible than standard renters insurance, so you'll be able to file a claim even if the monetary value of the damage is minor. Furthermore, they frequently feature replacement cost coverage, which means you won't have to pay for depreciation on your belongings. And the monthly prices are often comparable to or lower than conventional renters insurance. However, you will not have the liability and additional living expense coverages of a standard renters insurance policy with this type of policy. So, personal property insurance is most useful when you already have coverage from another source, such as your parents' home insurance.

A property-only coverage is not offered by every renter's insurance carrier, but many do. And a few companies, like NSSI, specialize solely in this form of policy. Here are a few dorm insurance provider possibilities.

Insurance Companies for Personal Articles

• State Farm Insurance

• Nationwide

• NSSI

• GradGuard

• Student Renters Insurance from Gallagher

How to Get Low-Cost Renters Insurance for College Students

Choosing the proper renter's insurance company (and the right types of coverage) is critical to ensuring you're adequately insured while not overpaying for things you don't require. Here are some pointers for finding the best renters insurance while in college.

• Estimate the worth of your property to determine how much coverage you require. Most renter's insurance providers have a minimum coverage amount of roughly $10,000, which is likely to be sufficient for the majority of college students. This will ensure that you are not overpaying for coverage. Begin with your most expensive objects, such as your laptop, smartphone, and furnishings, as these are likely to account for the majority of the monetary value of your property.

• Determine which additional coverages to seek. Renters insurance often includes liability coverage, which is useful to have, especially if you host large parties regularly. You may also wish to include additional living expenditures to cover the cost of a hotel or alternative housing if your flat becomes unlivable. If you live in a dorm, you can probably skip ALE.

• Obtain renters insurance quotes from several insurers. Renters insurance is not prohibitively expensive. The national average for renters insurance is $187 per year or less than $16 per month. However, because different firms offer varying rates, you might save money by shopping. Check with several respectable companies to discover who will give you the greatest price—no small issue for a college student's limited funds.

• Consider using an insurance agent. Students who are inexperienced with the insurance process may benefit from the advice of an insurance agent. An agent can explain the process of signing up for a policy and filing a claim, as well as assist you in selecting the appropriate coverages for your case.

How Renters Insurance Protects College Students

Renters insurance is coverage that covers you and your property in the event of an accident. Renters insurance, despite its name, covers you even if you live in a dorm or with a family member. A basic renters insurance policy has three primary coverages: property coverage, liability protection, and supplementary living expenditures.

Property Protection
Personal property insurance protects everything you own. This includes your clothes, laptop, books, and other belongings. You are safe no matter where things are, whether your home, classroom or even another country. Renters insurance policies typically have a maximum coverage value, such as $10,000. Make sure your policy limit is sufficient to cover all of your valuables in the event of a catastrophic loss, such as a fire in your flat. That way, you'll be able to replace anything without having to pay for it yourself. Keep in mind that property insurance only protects you against certain covered dangers. Most renter's insurance policies cover theft, fire, wind, and other types of damage, but typically do not cover accidental damage or loss. Examine your policy to see what is and isn't covered.

Coverage for Liability
Liability coverage compensates others when you are found to be liable, or legally responsible, for what happened to them. For example, you're covered if someone is injured in your house, but it can also protect you from libel and slander.

Extra Living Expenses
Additional living costs (ALE) coverage pays for temporary living expenses if your home becomes uninhabitable due to a covered danger. For example, if your apartment burns down, ALE coverage will pay for you to stay in a nearby hotel until it is safe to return home.

What Renters Insurance Doesn't Cover

However, renters insurance does not cover everything. For one thing, renters insurance only protects your personal belongings; your roommates will require their policy. And, whether you live in a dorm or a privately owned apartment, damage to your house will be covered by the policy of whoever owns it—your institution or landlord. Cars are also not covered by renters insurance, regardless of who owns them. Car insurance covers damage to your vehicle.