As college students begin their first experience of living away from the family home in their own rented accommodation, it is going to be an exciting experience. The idea of living independently will take precedence over mundane details such as damp patches, dodgy locks, or renter’s insurance. All types of insurance have one thing in common: the risks they cover. Some types of insurance are essential, such as auto insurance, while others are optional. Renter’s insurance is not compulsory, but when the risks are considered it is most certainly advisable and beneficial for students to opt for it
The location decided on may be a popular one, but how safe is the area in terms of crime? The property may look sound but just how high are the maintenance standards of the landlord? Students may be sharing accommodation but how well do they really know the other people? These are all unknown quantities presenting risk.
Contrary to what you may assume, a landlord’s insurance policy will only cover the property you rent , and not your own personal belongings. If a pipe bursts you won’t be liable for the cost of fixing the pipe, but neither will the landlord be responsible for replacing any personal items which are ruined. Other risks you must consider are fire and smoke damage, as again your landlord has no liability for any items you lose.
Another risk area which student renter’s insurance covers is any expenses incurred if damage to the property makes it necessary for you to find temporary accommodation. This could prove invaluable if you are suddenly homeless due to fire or flooding which makes your accommodation inhabitable.
As a student renter you are liable for accidental injuries anyone sustains within your home. This means you could face paying third party medical bills, or even legal costs. Personal liability is covered in the insurance, giving peace of mind. .The most important factor which determines the necessity of insurance is replacing damaged or stolen personal items. Even as a student you will have things which would need immediate replacement. There are clothes, computer, iPod, text books and other things.
There are two kinds of coverage available and these will make a difference to the premiums paid. These distinct cover options are ‘replacement cost value’ and ‘actual cost value’. The latter values your possessions at their current worth, considering depreciation, while the former covers the cost of replacing the actual possessions at current prices. Anyone who has possessions of any value should seriously consider taking a policy with ‘replacement cost value’. It is good practice to start to retain all receipts of goods purchased.
It is possible for a student to obtain some kind of insurance coverage through the parental home insurance policy, but bear in mind, this is very limited if the student is living away from home. Any claim on the parental policy, incurred by the student, will have a direct correlation with future rises of premiums on the parental policy. It is, therefore, of more benefit for the student to obtain their own renter’s policy, thus demonstrating personal responsibility.