The apartment’s a scene of chaos, with chairs knocked over and clothes strewn everywhere. It may be a standard sight in a student apartment but this time there’s an important difference; the mess has been caused by a thief who has made off with your most valuable possessions. It’s at this point someone may enquire “Have you got renter’s insurance?”
Unfortunately, all too often the first time students become aware of the existence of renter’s insurance is after disaster has befallen their prized possessions. It doesn’t need to be a case of theft; renter’s insurance also covers accidental damage and the risk of damage from fire, flood, or an earthquake. However, no matter what the cause is, the bottom line is you’ll end up out of pocket unless you’ve had the foresight to purchase a renter’s insurance policy.
Of course, college students are not typically rolling in money. It’s understandable that insurance is an unaffordable luxury. However, this doesn’t stop many students from owning expensive gadgets, such as game consoles, iPhones, wide-screen TVs, and sound systems. The re-purchase price might be very high if you were suddenly forced to replace them so, when viewed in that light, the cost of insurance is not so great and not so much of a luxury.
Another reason why renter’s insurance is particularly pertinent for students is that they are often prime targets for theft. Student apartments typically are low cost, may be situated in less salubrious areas, and often don’t have security systems. Local criminals often target college students as they know they tend to have the kind of high valuable items that can easily be re-sold for a quick profit. They also know students spend a lot of time away from their apartment (either in classes or socializing) which makes student apartments a relatively soft touch for professional thieves. Having renter’s insurance in place buys peace of mind which can allow students to get on with the job of having fun and gaining important qualifications.
Students often arrive at college with limited knowledge of financial matters but renter’s insurance is one of the financial management tools they should be made aware of. To obtain renter’s insurance, students should work out the replacement value of their possessions and ensure the requested policy covers the potential loss they could incur. It should be noted, coverage against flood or earthquakes is sometimes an add-on to the basic renter’s insurance policy and you would need to factor in whether you live in a high risk area for such natural disasters.
One final point to note is parents are often happy to assist in supporting their children through their college years. One way they can do this is to help with the cost of the renter’s insurance premiums. After all, chances are it will have been the parents who will have splashed out on at least some of the fancy and expensive mod cons that so enrich students’ lives!