A Guide To Renters Insurance For College Students

Posted by: TheGuarantors on August 25, 2021

As a college student, life is hard enough with deadlines and assignments, never mind the added logistics of living on your own for the first time. If you've chosen to live off-campus with your friends in off-campus housing, this is for you! Moving away from home and your college campus comes with unique challenges - one of which is deciding if you need college renters insurance. Look no further - this is your one-stop guide to the ins and outs of renters insurance for college students!

Do I need renters insurance as a college student?

  • For students who live in campus dorms or at home, you might be covered under your parents' homeowners' insurance - ask your parents to find out!
  • As for students who live off-campus, it is important for you to get policies of your own because your personal property is at risk of being unprotected should accidents happen.
  • For those students whose housing arrangements are temporary, such as renting rooms through Airbnb or crashing on a friend's couch, unfortunately, you will not be eligible for the renters insurance policies. In this scenario, the host is responsible for obtaining short-term insurance.

On the whole, it is a good practice to make sure your policy or your parents' policies offer adequate coverage for your life as a student!

What is covered under students renters insurance?

If you're a college student living in off-campus housing, it is highly recommended to insure your belongings. This is especially important if you're living independently on your own for the first time, considering how unpredictable college life can be. And everything you've packed in your suitcase and hauled to school costs a pretty penny - from premium laptops to expensive textbooks to TVs.

Even if you're living at home or in school dorms, renters insurance will cover your personal property to a certain extent; however, it does not lend itself to liability or loss-of-use.

  1. Property Coverage: Renters insurance for college students protects you from the loss or damage to your personal property - this includes everything from your headphones to your mini-fridge.
  2. Liability Coverage: You will have liability coverage on the off-chance that someone in your rented home should get hurt. Make sure you read the fine print of your policy to see the special limits of liability.
  3. Additional Living Expenses (ALE): Renters insurance makes sure that you are reimbursed if your rented home should become uninhabitable due to peril - in this context, peril covers lightning, fire, theft, smoke damage, among others. In this case, the policy will cover temporary housing expenses such as groceries until your home is safe again.

For a quick overview of the protection offered by renters insurance, have a look at the graphic below.

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Source: Mint

How much does renters insurance for college students cost?

The average cost of renters insurance nationally is $15 per month, but the rates available to you may differ based on where you live. This is because the likelihood of perils such as fire, storms, and theft varies from place to place, from state to state. Despite the low monthly costs, student renters insurance can offer up to tens of thousands of dollars in protection.

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Source: National Association of Insurance Commissioners via the Insurance Information Institute.

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Source: Value Penguin

Tips For Renters Insurance For College Students

  • You can get discounts on your renters insurance policy by investing in cost-effective solutions to protect yourself, such as installing a smoke alarm or adding a deadbolt lock to your door!
  • The quotes for your renters insurance policy will also be lower if you have one or more of the following safety features in your home: fire extinguisher, local burglar alarm, and automatic sprinklers, to name a few.

To Buy or Not to Buy College Renters Insurance?

Buying renters insurance for college students is a smart financial move - the policy itself is economical in the bigger picture if you lose everything you own. Forbes Advisor has listed Lemonade as one of the best carriers of renters insurance in June 2021. For the full list of companies that offer the best prices for student renters insurance, visit this list to choose a company that best suits your needs!

Sources:

Insurance Information Institute

ValuePenguin

Business Insider

Billyard Insurance Group

Forbes Advisor