Reasons college students need renters insurance.
When you get out of your parents’ house for the first time, the last thing that you’re thinking about is something like renters insurance. However, renter’s insurance is important for more than simply protecting your personal belongings. It also helps you out if you get caught in a natural disaster and lose your home, as well as helping you get back on your feet. Renter’s insurance is particularly important if you’re not staying on campus.
- Personal property coverage. You might not have the most expensive furniture, but your laptop, tablet, and especially your college textbooks represent a hefty price tag, and not one you can easily replace if they get destroyed, lost, or stolen. Personal property coverage protects the contents of your apartment or room up to a certain value.
- Living expenses. When you lose your apartment because of a natural disaster, you probably don’t have the money to drop on a hotel room or an alternative living arrangement that quickly. Some renter’s insurance covers you until you have a new home ready or your apartment is habitable once again. Additional living coverage will pay the amount above and beyond your usual cost of day to day living.
- You have two different options for loss settlement. The first type gives you the items current value (commonly called actual cash value), while the second type gives you the replacement cost for the item, which is comparable to the new, retail value of the item. The replacement cost option sets you at a higher premium, although it does mean you get more for your property.
- Expanded riders. If you have expensive furniture, tech equipment, or other property that exceeds the amount covered by your basic rental insurance, you can add coverage for higher value items on individual riders. This allows you to fine tune your coverage so you don’t have to worry about whether or not your items fall under the policy.
- Saving money on auto insurance. Renter’s insurance is usually very inexpensive. Most companies will discount your auto premium with the addition of a renter’s insurance policy. Often times, renters insurance is much less than you would expect.
