Does My College Student Need Renters Insurance?
On Campus
College students living on campus in a dorm during the school year may be covered under their parent's homeowners insurance. Usually, the named insured or resident relative has coverage for up to 10% of their personal property coverage while that property is at a temporary location away from the home. For example, if you have $200,000 of contents coverage on your home insurance policy, you may be covered up to $20,000. A college student in temporary housing at a college dorm would still be considered a resident under the homeowners insurance policy.
Off Campus
College students living in an off-campus apartment should consider purchasing renters insurance to cover their belongings and provide personal liability protection. Unlike the scenario above, college students who live off campus usually sign yearly leases. In this case, the college student may no longer be considered a resident relative under the policy definitions. If if the landlord does not require the college student to get a renters policy, they should still consider purchasing one.
Why a College Student Should Get Their Own Renters Insurance
Here are some additional reasons why a college student should get their own renters insurance:
Very Affordable - The average renters insurance cost around $10-$15 a month. They spend more than that on their daily trip to the coffee shop.
High deductible - Even if the student does have coverage under their parent's homeowners insurance policy, the parent most likely has a deductible of $1,000. It most cases, the student's property that was stolen would not even meet the deductible. With a renters policy, you can choose a deductible as low at $100 the their would be no substantial price difference.
Blemish on Parent's Policy - Homeowners insurance claims should be submitted in caution. Insurance is not meant to be used for every and any small financial inconvenience. Putting 2 to 3 claims in a short amount of time could cause the parent's home insurance policy premium to increase drastically and/or be non renewed by the carrier.
The Party House - Besides protecting your personal property, renters insurance provides liability coverage. Personal liability coverage is designed to protect you, as well as other individuals who visit your home, if an accident were to occur. This type of coverage will help pay for medical costs and legal fees that you could end up incurring.
Hope this Helps!
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