The Office of Student Housing strongly recommends that students consider purchasing renter’s insurance.
Renter’s insurance provides important coverage for you and your possessions against theft, fire, or water damage. Although landlords carry insurance to protect the building, their policies will not protect you or your belongings in the event of loss. Many renter’s insurance policies also cover individual liability if someone is injured in your apartment.
In order to determine if renter’s insurance is a good idea for you, think about what you own and what it would cost to replace. You should select a policy that will cover that amount of damage. In some instances, individuals may need to purchase a “rider” to cover specific items that are valued beyond the specified amount covered by the policy.
There are several different types of renter’s insurance and many different companies offer policies. Be sure to ask the company if the policy will reimburse you for “actual cash value” or “replacement cost.” Actual cash value policies only covers your belongings for the value of the item at the time it was damaged while replacement cost coverage will cover the cost of replacing the items. Renter’s insurance policies generally carry a deductible. For example, if a policy has a $1,000 deductible, the insurance company will cover your losses minus $1,000. Generally, a higher deductible means a lower monthly bill. Be careful to ensure that you can afford the deductible if an emergency occurs.
If you decide to purchase renter’s insurance:
- Contact your parents’ home-owner’s insurance company to see if you are covered in your apartment. If you are, you will not need to purchase an additional policy.
- Contact your car insurance and medical insurance and ask if they give discounts for having multiple insurance policies with them.
- Contact at least three different companies to get quotes and find the best deal.