Do College Students Need Renter's Insurance

If you're going off to college or are sending someone off to college, you'll likely find that there are countless details that need to be considered. Although it may not be obvious, you should definitely consider the importance of covering your possessions with some type of insurance policy.

Dormitory Living

If you'll be living in an on-campus dormitory, you may find your personal possessions are actually covered to some extent by your parents' homeowner's insurance policy. You'll need to check the policy or consult with your insurance agent to find out what kind of coverage there is and, if coverage exists, to what extent it will pay for losses to your possessions while you're away at college.

Coverage for college students living away from home will usually have a cap on claim amounts allowed – typically 10% of what's covered for the main policyholder living at home. Policies that cover students living in dorms also usually have an age cutoff, typically age 26, after which students no longer qualify to be on their parents' policy. It's also common for coverage to exclude liability and loss of use coverage.

Students Not Living in the Dorm

For students not living in a dorm on campus or for those who aren't covered for loss of their personal possessions under their parents' homeowner's policy, the best alternative is to obtain renter's insurance coverage. While insurers won't write a renter's insurance policy to cover a dorm room, some have policies available for specific coverage of personal possessions in a dorm room, absent of the added liability and loss of use coverage.

Students living off campus, in an apartment or house, can buy a renter's insurance policy at an affordable price and cover not only loss of their personal possessions but also liability protection in case someone gets injured on the property they're renting. They will also have coverage for loss of use of their dwelling, in the event that something occurs that makes their home no longer habitable for a period of time.

While it may be easy for a college student to rationalize foregoing the purchase of renter's insurance because they have few valuable possessions, it's also easy to miscalculate the value of what they own. But even more importantly, the value of having financial protection against a liability lawsuit cannot be overstated. Loss of use is also a valuable protection to have.