As a college student, you’re probably looking around your apartment now thinking, “what do I have that I could possibly want to insure?” You might see the futon you pulled out of the dumpster after last year’s move-out week, the pots and pans you bought from the Goodwill that may or may not be carcinogenic, and the table you got off Craigslist that came with three chairs and a broken leaf, and think “nope, don’t really care about any of this.”
While those things specifically aren’t worth a lot, when you add them together with your laptop, your Bose headphones, those chemistry textbooks you only used once, your iPhone, and that weird kitchen appliance your Mom got you for Christmas, you do actually have a decent amount of possessions. And if you’re like most other college students, you probably don’t have the money to replace them if they all went up in smoke. So, how do you protect your moderately adequate items in the event of a disaster?
The answer is renters insurance.
While it doesn’t sound very devil-may-care, and it probably won’t fit your free-and-loose-no-commitment-20-year-old-flower-child image, renters insurance is one commitment you, as a college student, don’t have to fear. In most cases it will really only cost you somewhere around $10-$30 a month, all of the things you love will be covered, and you only have to commit to the policy for as long as you have the apartment.
Why do you need it?
Well, if we haven’t already made it clear that you might want to keep your computer, and have somewhere to live in case your entire apartment catches fire, there’s a couple other reasons why a college student should have renters insurance.
You’re not covered: A lot of students think they’re covered under Mom and Dad’s policy until they’re 26. While this is true of your health insurance, if you live off campus in an apartment, house, or condo, your parents’ insurance does not apply.
Your clothes: If that wasn’t reason enough, just think about that wardrobe you’ve been carefully tailoring and adding to since you left home. A renters insurance policy covers your personal property, which does in fact include that lovely closet of yours.
Your electronics: In all seriousness, college students do have high-value possessions that deserve to be protected. From your laptop, to your FitBit, to your iPhone, those are things that cost big money and you most likely don’t want to pay to replace. Renters insurance makes sure that you don’t have to start over with money you don’t have. There’s nothing worse than asking somebody else for money, again. Renters insurance makes sure you don’t have to.
What do you need to know?
Other than what renters insurance protects, it’s good to know what your options are, and what you’ll be covered for. So here’s a couple things to keep in mind when you shop around for a renters policy that fits.
- There are two different types of renters insurance. So, what are the two different types, and what sets them apart?
- Actual Cash Value – This option pays to replace all of the possessions that were lost, but they take out a deduction for depreciation. That means if you lost your computer, you wouldn’t get back enough money to buy a new computer, you’d only get back what your computer was worth at the time of its demise.
- Replacement Cost – This option pays you for what it would cost to go buy replacements for your possessions, with no deductions. Obviously this one costs a bit more, and you have to know what your limit is as well, because all insurance policies will only reimburse up to a certain limit, which brings us to our next point.
- Floaters/add-ons – If you have a lot of valuables, like those electronics we talked about, or who knows, maybe you’re into Louis Vuitton, it’s better to take out a floater policy specifically for the more expensive items. Since your renters insurance policy will only cover damages to a limit, a floater will ensure you get as much coverage as possible for the things you’ll definitely need replaced.
- More than just property coverage – Your renters insurance will cover more than just personal property damages as well:
- Liability – Say someone got hurt at your home. Not from sledding off the roof or playing some ridiculous made-up yard game of course, but let’s just say somehow, they got hurt. Your renters insurance will protect you up to the limits on the policy, against any possible claim or lawsuit.
- Additional living expenses – In the event that you do have a disaster that makes your apartment unlivable for a time, renters insurance will pay for you to stay somewhere while your apartment is restored, and it will pay for your meals.
How to make sure you’re getting the right coverage
It’s really hard to take stock of your possessions after they’re gone. If you want to make sure that you’re getting compensation for all of your possessions, it’s a good idea to take inventory. This might sound super long and boring, but only takes a few minutes to make a video with your phone or make a list of the things you want covered. You only have to do it once, and you’ll be able to report exactly what was lost, and get reimbursed for those items. Make sure you keep the list or the video somewhere you can access it easily, like on the cloud or in your email, in case something does happen.
If you’ve decided that renters insurance might be a good investment as you move into your next apartment, give Doyle & Ogden a call. Whether you have a few questions that need answering, or if you’re trying to find a policy to suit your needs, our insurance agents have years of experience, and with over 10 companies to choose from, you’re sure to get better coverage for the best price. Give us a call at 616-949-9000 or get your free quote online!
