Renter’s Insurance is required for all residents living on campus and recommended for those who choose to live off-campus.
Renter's Insurance protects your personal property, such as a computer, television, stereo, bicycle or furniture, in the event that it is damaged, destroyed, or stolen.
If you are a resident who is dependent under your parent’s insurance, your personal property may not be covered. Ask your parents to check and ensure that your belongings are covered or choose to do some research and find a policy that best covers your belongings.
What is Renter's Insurance?
Renters insurance protects your personal property against damage or loss, and insures you in case someone is injured while on your property.
Why Purchase Renter's Insurance?
In you live in a rented apartment (again, this includes on-campus living,) your property manager's insurance does not cover your personal property in the event that it is damaged as a result of a fire, theft or other unexpected circumstance.
College students living in on-campus housing are ideal candidates for needing renters insurance, since many students bring thousands of dollars worth of personal items, such as electronics, a computer, textbooks, clothes, furniture, and a bicycle, with them to school. It is the renter's responsibility to provide coverage for these valuable items.
Most renter's insurance policies provide two basic types of coverage: personal property and liability. Personal property coverage pays to repair or replace personal belongings if they are damaged, destroyed, or stolen. This is the most commonly purchased renters policy.
Liability insurance provides coverage against a claim or lawsuit resulting from bodily injury or property damage to others caused by an accident while on the policy holder's property.
Unusually expensive items, such as fine jewelry or an art collection, may require the renter to purchase additional coverage, called a "rider" or "floater". Your insurance agent can help you determine if additional coverage is necessary.
The premiums for renter's insurance average between $15 and $30 per month depending on location and size of the rental unit and the policy holder's possessions.
Shop for the Right Coverage
Another important factor to look for when shopping for renters insurance is "actual cash value" vs. "replacement cost" coverage.
Actual cash-value coverage will reimburse you, the policy holder, for the cost of the personal property at the time of the claim, minus the deductible. It is important to account for depreciation when considering this coverage option. For example, if a stereo system was damaged in your apartment after the sprinkler system engaged, five years after the stereo was purchased you would be reimbursed for the current value of the system.
Replacement cost coverage, on the other hand, will reimburse the full value of the new stereo system, after you purchase the new system and submit your receipts. While the up-front cost is greater, you are more likely to receive accurate compensation for your processions.
Other Points of Interest Regarding Renter's Insurance
When a claim is reported, the insurance company will ask you for proof of purchase for all items reported on the claim, a comprehensive list of possessions, including purchase prices, model numbers and serial numbers, will suffice. It is also a good idea to take photos of video footage of any personal possessions for documentation. Making sure it is stored in a secure, off-site location.
When determining how much, if any, renters insurance you should purchase, estimate the value of your personal possessions. This is the amount of insurance you will need to replace the contents of your home if everything were destroyed.