Renters Insurance for Your College Student

Fall is a season of change; particularly if you are sending your son or daughter off to college for the first time. This year parents will be sending over 13 million students off to college along with their assortment of electrical gizmos and gadgets, not to mention all the clothes and other necessities they couldn't leave home without. According to the Insurance Journal, each college student will take between $5,000 to $10,000 worth of personal property to colleges across the country. As parents, you can help protect your college-bound child's assets by getting a rental insurance policy for them.

What is Renters Insurance?

Renters insurance is ideal for students who are living off-campus in apartments or houses, and are no longer covered under their parent's homeowners insurance policy. Renters insurance is a relatively inexpensive way to protect your child's assets; with most renters policies costing between $15 and $30 a month (NAIC.org). Chances are you did a home inventory when you purchased your homeowners insurance policy. Your college- bound child should do the same and take an inventory of all the possessions they are taking with them, making sure to note the purchase price, model numbers and serial numbers.

Do You Need Renters Insurance?

Most students who reside off-campus dwell in apartments. According to the National Crime Prevention Council (NCPC), apartments are 85% more likely to be victimized by a burglary than any other form of housing. Many renters mistakenly believe that their personal belongings are covered under the landlord's homeowners insurance policy. However, most landlords' policies only cover the exterior and infrastructure of the building. In most cases, tenants are responsible for all belongings within the rented property.

Two Types of Renters Insurance

There are two types of renter's insurance coverage you can buy; actual cash value or replacement cost. An actual cash value policy will reimburse you the value of any items broken or stolen, taking into consideration the depreciation of each item. A replacement cost policy would reimburse you for the current market price for all stolen, damaged or destroyed items.

What if My Roommate Has a Renters Insurance Policy?

If you are living with someone who has a renters insurance policy, then their belongings will be covered, but that doesn't mean yours will. Each roommate must have their own renters insurance policy in order to protect their own personal property. If you or your roommate owns a dog, it is a good idea to consult an insurance professional about any additional coverage you may need.

Sending your child off to college is a life-changing event. For most kids, this will be their first time living away from home. While this rite of passage is a pivotal step in your child's maturation into adulthood, it also can be a worrisome time for most parents. Protecting your child's property with a renters insurance policy is an inexpensive way of alleviating some of your concern, and giving you some added peace of mind.