This Is How to Find the Best Renter’s Insurance for Your College Pad

By Amelia Woolard

While enrolled in college, you may find it hard to push past thoughts of homework and parties to focus on something as decidedly “adult” as renter’s insurance. You may believe that renter’s insurance is something for the postgrad crowd, or something that doesn’t apply to you since you might still be dependent upon your parents in some aspect. Think again. Renter’s insurance is an invaluable tool for young adults, and we recommend purchasing it as soon as you move into a place of your own.

You may be wondering how best to go about getting the coverage you need. The good news is that renter’s insurance is a commonly purchased item and can easily be bundled with other insurance packages depending on your provider. Here are a few more things to keep in mind when deciding which renter’s insurance policy best fits your needs:

Your Landlord and Roommate’s Coverage Does Not Apply

Renter’s insurance is not required by law. However, some landlords may require you to purchase insurance prior to moving in to your new apartment or home. Keep in mind that regardless of your landlord’s requirements or kindhearted disposition, he or she will not cover losses sustained during your tenancy. Additionally, any policy that your landlord has taken out to protect their property does not extend to you as its temporary occupant.

Likewise, if your roommate has renter’s insurance and you do not, don’t assume that the partial coverage will do you any good. If something were to happen to your shared abode, the policy would only cover items owned by the policyholder (A.K.A. your roommate). It is totally possible to join your roommate’s policy—just purchase a plan together and split the costs accordingly.

Consider Your Valuables and Lifestyle

All students living in an off-campus rental should have renter’s insurance, but this is especially true if you own items of value. Consider all of your personal items, including technology, furniture, and clothing. If you’re an art or music student, you may want to take stock of how much your supplies or instruments are worth. And if you think that your things aren’t worth much, you might want to reconsider that thought. It’s estimated that the average American adult owns $20,000 worth of belongings, and college students are no exception!

In addition to the valuables you own, it’s a good idea to consider your lifestyle when determining how much coverage you need. If you like to show off your new digs to anyone willing to stop by, you may opt for a greater amount of coverage in case your new friends trash the apartment or “borrow” things without permission. If you live in an area where you fear theft, you may want to choose a plan that is particularly generous should your new home be robbed. Hey, we’re not trying to scare anyone, but as someone entering the adult world (whether you like it or not), you really need to evaluate all the possibilities.

Understand What Renter’s Insurance Covers

While renter’s insurance policies may differ depending on coverage amount, most policies cover three main items: personal possessions, liability, and additional living expenses.

• Personal possession coverage will compensate for the loss of your belongings in the event of fire, vandalism, or theft. Check your policy for specific coverages.
• Liability coverage will financially assist you if a visitor gets hurt at your apartment or seeks legal action against you. The liability payout will help cover any medical expenses required or attorney’s fees, should you need them.
• Living expense coverage will temporarily support you if something catastrophic happens to your apartment. Typical covered costs include temporary living arrangements and/or meals.

As great as renter’s insurance is, it is not an end-all solution to every issue a renter could face. Here are the things that renter’s insurance does not cover:

• Natural disasters, including flooding, earthquakes, hurricanes, tornados, and the like. If you would like coverage against these conditions, consider purchasing a separate plan designed specifically for those needs. This is especially important if you live in a high-risk area where such occurrences are common.
• Damage caused by a pest problem. Your landlord should handle pest control, but if not, understand that pest damage is not covered by renter’s insurance.
• Incredibly high value items, such as antiques, jewelry, or art. While renter’s insurance can cover damage to personal belongings, many policies cap compensation payouts. As far as your insurance agency is concerned, Grandma’s priceless diamond ring may only be worth a maximum of $2,000 even if its true worth far exceeds that. If you’re concerned about protecting any high value items, purchase additional coverage for them.

Make the Purchase

Once you decide that you’d like to purchase renter’s insurance, the process is usually quite simple, and rates are typically very affordable. The national average ranges from 15 to 30 dollars a month – a steal compared to the possible damages you could face should you decide to forego insurance. Renter’s insurance is available at most national agencies. Often, an agency will combine renter’s insurance with another type of insurance, such as car insurance, and may even offer you special pricing for bundling the two.

Remember that many policies carry a deductible, which you must pay in order to receive aid. You will want to clarify the deductible amount with your broker prior to purchasing the insurance to prevent any miscommunication or unmet expectations.

Renter’s insurance offers students an affordable way to gain peace-of-mind while building a financial history. Purchasing renter’s insurance is a no-brainer for anyone who values their possessions and wants to protect themselves from potentially sticky (and costly) situations. If you’re a student who has just decided to rent an apartment, do yourself a favor and purchase renter’s insurance. You’ll be glad that you did!

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