Adulting 101: How to Get Renters Insurance for College Students

Adulting requires you to plan for unfortunate events. Whether that means buying your own health insurance when you age out of your parents’ plan or beginning a retirement savings account, planning is crucial to successful adulting. Insurance of any kind helps protect you financially when things go awry.

As a college student renting an apartment or house, you should consider purchasing renters insurance. Renters insurance protects tenants and their property in an unforeseen event, like a fire, by insuring your items.

Although not all apartments or rental homes require you to purchase renters insurance, having renters insurance can help protect you and your belongings. There are typically three types of renters insurance: personal property, liability, and additional living expenses.

Personal property renters insurance covers the cost of your personal items damaged in a fire or flood. Depending on your plan, personal property insurance may also cover items stolen in a theft. Liability renters insurance covers the cost of any guests’ injuries in your rental. Additional living expenses insurance can help cover the cost of extra expenses like a hotel room if you can’t stay in your residence.

Keep in mind that your renters insurance will only cover the cost of the amount you insured and requires you to pay a deductible, the amount your insurance doesn’t cover. For example, if you have a $2,000 deductible and $6,000 worth of damage, you cover $2,000, and your insurance covers $4,000.

Whether or not you need renters insurance may depend on if you live on or off campus. If you live in a dorm, your parents’ home insurance policy might cover you. Check your parents’ policy. You can always purchase additional renters insurance. Some colleges even offer renters insurance to dorm students.

Once you live off campus, your parents’ insurance plan doesn’t cover you because you’re considered a resident at your new address. Although you might think your items aren’t worth enough to insure, expenses like laptops, furniture, and bikes can add up.

If you aren’t covered under your parents’ insurance, you should consider purchasing renters insurance. Think about the items you currently own. If you lost them all tomorrow, would you be financially capable of replacing them?

You want to get enough coverage to take care of your property, but not too much so that you are paying more for insurance than you need. Check with your landlord or campus housing to see if they cover any damages and, if they do, how much.

Start by creating an inventory of all your personal items and their estimated worth. If you can’t remember how much you paid for items, Google similar items to give you the best approximation. Include bulk items like the cost of all your clothes and shoes.

Also, consider whether or not you plan on making any larger purchases while you’re renting the property and factor those costs into your total.

Although the lowest monthly cost — or premium — might tempt you, there are several factors you want to consider when choosing a renters insurance policy. When examining your quotes, compare the monthly costs to the coverage and the deductible.

Typically, a lower premium will equal a higher deductible. Some people prefer lower monthly costs and a high deductible, while others may need to budget a higher monthly cost for a lower deductible. Investigate how easy making claims is and how quickly you will receive compensation.

If you already have an insurance policy, like car insurance, check with your policyholder to see if they offer renters insurance. If so, they might offer a cheaper price for bundling insurances or having multiple policies.

You may also be able to bundle your renters insurance with your parents’ policyholder if they already have homeowners or auto insurance.

Beyond a payment method, most renters insurance requires very little to apply. They’ll most likely need your name, date of birth, and possibly your social security number. The insurance company will also ask you to provide the rental address and the number of people who reside there.

You should compare rates from multiple insurance companies to ensure you get the best coverage for the most affordable price. Most companies provide free quotes online. Applying is generally quick and easy.

DISCLAIMER: The information provided on this website does not, and is not intended to, constitute professional financial advice; instead, all information, content, and materials available on this site are for general informational purposes only. Readers of this website should contact a professional advisor before making decisions about financial issues.