Benefits of Renter's Insurance for College Students
Young adulthood is full of all sorts of unexpected twists and turns. When you are renting an apartment on or near campus, schools often advise students to purchase rental insurance. Renter's insurance usually covers the same types of damage that homeowners insurance does, although there is often an option for accidental damages to personal property as well.
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Personal Belongings Coverage
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You may feel that the likelihood of a natural, physical or man-made disaster is slim. Your college apartment or dorm is not in a hurricane- or flood-prone area, you have responsible roommates who won't leave the stove on overnight and the building you live in is in great condition. Given the terrific circumstances of your residency, why spend money on insurance coverage? However, what happens if you drop your phone in the dishwater, if your roommate spills coffee on your laptop or you leave your iPod in the lounge and someone else takes off with it before you return? Many insurance companies offer coverage for such seemingly unlikely events exclusively for college students.
Property Damage
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Far-fetched as it may seem, let's say you dump your ex-boyfriend and start dating someone else. Your ex gets wind of your new beau's visit to your home, pays a visit and punches a hole through your door. Sure, you can sue him for the damages and wait for a court to decide whether he is truly liable or not. In the meantime, your landlord will want you, the renter, to get that door fixed -- immediately. Insurance companies are aware that college kids often find themselves in such unavoidable binds, which is why coverage for such unpredictable incidences is essential.
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Fire, Theft, Weather
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Students should be aware that disasters and accidents can happen to anyone, anywhere. Young or old, nobody is completely immune to the possibility of fire, weather damage or criminal actions. Without basic renters insurance, students could literally lose everything in such a tragic event. Part of the responsibility of independence is backing yourself up with coverage and protection in case the unexpected should arise.
Coverage
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Insurance agencies that offer renter's insurance for college students usually have two basic types of coverage options. "Replacement cost value" covers the replacement of physical possessions at up-to-date prices. "Actual cost value" assesses your items their worth at the time the policy is opened, then estimates depreciation. The "actual cost value" package will typically have a lower premium than the "replacement cost value" package, since one will pay out more than the other in the case of a claim. If your possessions hold significant value, you would benefit from paying the extra premium for "replacement cost" coverage.
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