The benefits of renter’s insurance for college students

Soon after receiving an acceptance letter into a school of choice, college bound students and their parents begin preparing for campus life. Colleges in turn, write letters and send e-mails detailing what is and is not acceptable for on-campus housing. Naturally, Mom and Dad want their child to experience many of the comforts of home, while receiving a good education. Parents discuss hotplates and microwaves, blankets and dishes. Responsible parents should also engage in a discussion concerning renter’s insurance.

If your son or daughter is renting, their landlord isn’t obligated to insure the contents of the domicile in which the student lives. The landlord is required,  as a homeowner, to have homeowners insurance, but this protects his interests not yours. In addition, if you think your student’s possessions are covered by your existing homeowners insurance, think again. Most companies allow coverage of property which is under your roof only. Just for clarification, your on-campus child does not live permanently with you, in the same house and therefore is not covered by your policy. In an emergency, parents are left to replace their kids contents out of pocket. Who needs that and tuition? It only makes sense to prepare for the unexpected. Renter’s insurance protects the interests of college students and their parents.

•Consider the contents of the students residence.

This is the age of technology. Most students have big ticket items which should be insured. In the event of an emergency such as a fire, flood, or even theft, iPods, laptops, and cellular phones are expensive to replace. Renter’s insurance will benefit you in the loss of these and other items.

•Replacement value or actual value is a policy consideration.

Replacement and actual value means exactly what their names imply. A replacement value policy covers the cost of what you would pay to replace the item. An actual value policy covers the exact value of the item at the time of loss and in its present state. If the object is ten years old, you are reimbursed what the item is worth today, not what it cost to replace a brand spanking new one. Replacement value is better in the long run. The company will pay exactly what it cost to replace the item, no matter how old or used the item being replaced.

•Renter’s insurance will provide peace of mind.

Should a situation arise which forces the student from his residence, parents who have secured renter’s insurance can relax. A renter’s insurance policy may provide funds for your child to relocate so that he is not left high and dry. For this reason alone renter’s insurance is valuable.

•College students are liable in their rented homes.

If a visitor in your home takes a fall, renters insurance covers your liability. Liability protection is a definite benefit to renter’s insurance.

When leaving home, students pack u-hauls and station wagons to the gills with belongings they cannot live without for four years away. It makes sense to insure those possessions. Parents will do well to place renter’s insurance at the top of their ‘to do/to get’ list.