When your child begins college the last thing on your mind is purchasing insurance for their personal belongings.  One should be mindful that a new college student can have increased risks.  What do you do when your child calls you that their laptop was stolen?  Renters insurance is a decision that will give everyone involved piece of mind in these circumstances.

The decision of protecting your personal items adequately is dependent on your living arrangements while away at college.  Your parents can speak with their insurance agent to identify the coverage limits stated in their policy.  Your parents’ insurance policy will typically not cover personal belongings for off-campus living.

Renters’ insurance: Types of Coverage

  1. Personal property – protects your belongings from a covered peril such as: Fire, Hurricane, or Theft.
  2. Liability property – protects from third party claims.  This includes injuries in insured property or rental property is damaged by insured.  For example, a poorly installed satellite dish which can create leaks on the roof of the property.
  3. Loss of Use – covers temporary housing if insured property becomes uninhabitable.

The average cost of renter’s insurance is only $200 per year, for $20,000 of property coverage and $100,000 of liability coverage.  When shopping for renters’ insurance know the difference between cash value and replacement cost.   Cash value reimburses the value of your personal belongings at the time of a claim.  Replacement cost reimburses the full value of the replacement of an item.

If you have any more questions, concerns, or would like a renters’ insurance quote feel free to contact our office.