Do You Need Renter's Insurance in Dorms?

Student renter's insurance is most useful when it covers replacement costs for belongings.

College students generally aren't required to have renters insurance to live in a dorm, but you may want to buy coverage anyway to protect your belongings. Everything from expensive textbooks to electronics could be targets of theft at a dorm, and some students may not be able to replace such belongings themselves without renter's insurance.

Replacing Belongings

Take an inventory of all the items you intend to move into a dorm to determine if you need renter's insurance. You probably could not afford to replace a computer, digital camera, clothing and other items yourself if those things were stolen. Therefore, purchasing renter's insurance before moving into a dorm can be an important protection for students and parents who don't have extra cash to replace stolen or damaged belongings.

Parental Coverage

Renter's insurance may be cheaper, or free, if parents insure their college students’ belongings through their homeowner's or renter's insurance policy. Enrolled students who are under 26 years old can receive coverage under their parents' policy, according to the National Association of Insurance Commissioners (NAIC). Bankrate.com writer Jenny McCune notes students usually receive 10 percent of their parents' coverage, so $10,000 worth of coverage would be available for a student whose parents have a $100,000 homeowner's insurance policy.

Policy Rates

Parents risk having their rates increase if they add their college students to a homeowner's or renter's insurance policy because repeated claims issued by a student would likely drive up a parent's rates. Another option is to buy separate coverage, which the NAIC indicates could cost $30 per month or less. Separate renter's insurance may give students more coverage than their parents' policy provides, which could be especially important for students who plan to take several expensive electronics to college.

Considerations

McCune recommends students find out if they can get insurance discounts through their college because some colleges get low-priced deals for their students from insurance companies. In any case, it's important to get a renter's policy that covers the cost of replacing stolen or damaged items. You will get a significantly smaller reimbursement if your policy only pays claims based on the current value of your belongings, since the value of items usually drops after purchase.

References

• Bankrate.com; Insuring a Good College Experience; Jenny McCune; January 2005
• National Association of Insurance Commissioners: Renters Insurance for College Students