Kids and Money: Renters insurance for college students can provide peace of mind

Insurers recommend adding up the value of your student's personal belongings as accurately as possible to determine whether a policy's limits are adequate, writes Steve Rosen.

Your incoming freshman college student is raring to start, and all the dorm gear has been ordered or is already boxed up and ready for move-in day.

A new laptop, printer and smartphone, not to mention the big-screen TV that was a graduation gift from Mom and Dad. A new bicycle to get from one end of campus to the other and, of course, a thousand dollars in college textbooks are on the way.

That adds up to well over $3,000 in personal property that's being lugged to a dorm room this fall that could be a haven for burglars, who perpetrate the most commonly reported campus crimes.

Now comes the question you probably haven't thought much about: Do you need renters insurance protection in case of theft?

The short answer: Some schools may require students to have some form of renters insurance. But by and large, students living in dorms or other campus housing may have at least partial coverage on their parents’ homeowners insurance policy and don't need a separate policy.

However, some homeowners policies don't automatically cover a student's dorm-room residence, and some charge a higher deductible than a standard renters policy. In addition, coverage may be limited to 10% of the personal property coverage in a parent's homeowners policy.

Renters insurance is surprisingly affordable — in some cases as low as $5 per month.

In many cases, you may be able to get a discount by buying renters insurance from the same company that insures your automobile.

If your student is living off campus this fall for the first time, many landlords will require proof of insurance as a condition of the lease.

When shopping for a policy, insurers recommend adding up the value of your student's personal belongings as accurately as possible to determine whether a policy's limits are adequate. Know what's covered and what's not.

For example, renters insurance may cover the theft of a laptop but not knocking it off a desk and cracking a screen.

Some insurers may add an apartment roommate or three for a slightly higher premium as long their name is on the policy. But many insurers will require roommates to have separate policies.

For peace of mind, it's worth shopping and comparing coverage and costs of various renters insurance at sites such as TheZebra.com and Gabi.com.

While you may think college campuses are safe, serene communities, the reality is they are small cities where crime does happen. Then there are the unexpected damages from, say, a broken water pipe in a dorm that floods lower-level rooms and destroys electronics, furniture and clothing, or a burglar who cleans out an apartment of high-tech gear during a long weekend.

Finally, count on the unexpected, such as a party getting out of hand and a big-screen TV getting broken, or an expensive laptop walking away. Those incidents happened to my kids, and I was glad I had renters insurance to cover the losses. The monthly premiums were well worth the money I spent for protection.

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