Why College Students Should Consider Renter's Insurance: Protecting Your Belongings on Campus and Beyond

By Russell Seidelman, former Assistant Director of Financial Aid at the University of Portland Many students spend hours curating their dorm rooms to get the right vibe. Sometimes this means outfitting their new digs with posters and a lava lamp. It can also mean buying brand new electronic devices, including a laptop. Unfortunately, with so many students living in shared spaces, theft and vandalism are a reality on any college campus. Students are advised to protect themselves and their property. As a solution, some colleges recommend that students consider renter’s insurance and provide information on various options during summer orientation or online through the housing selection process. There are a handful of companies specializing in this market. One such company, GradGuard, works with over 600 colleges and universities nationwide. GradGuard also offers tuition insurance. This is an example of the language used by one university in the Terms and Conditions of their Housing Application and Agreement:

“The University does not assume any obligation or liability for loss or damage to items of personal property which may occur in its buildings or on its grounds, before, during or after the terms of this License. This includes but is not limited to damage, loss, fire, water damage, theft, flooding, etc. Students are urged to purchase renter's insurance for protection against loss or property damage.”

Protection of a student’s personal property is the main reason for obtaining insurance. Types of covered property may include cell phones, clothing, bicycles, furniture, and even jewelry. Policies provide coverage for items damaged in the event of fire, vandalism, wind, sprinkler system malfunctions, etc. If students decide to move off campus, they may be faced with housing options where landlords will require them to obtain renter’s insurance as part of the terms of their lease. Off-campus housing options vary, but students may want to consider renter’s insurance, even if it is not mandatory. These policies are more traditional than the ones for dorm rooms, but the idea is same: protection. Most of the major insurance providers offer renter’s insurance and it would always be advised to inquire with your current insurance company about bundling discounts. Always shop around for the best deal for your needs! If you ask an 18–22-year-old to name an insurance company, they may reference Lemonade, a company with an attractive marketing campaign that specializes in low-cost renter’s insurance. According to Lemonade, there are several considerations when deciding on the type of coverage you need, the amount of coverage you choose, and the deductible you choose. The higher the deductible, the lower the premium. The deductible is the amount agreed upon to be paid up front in the event of a claim. For example, suppose your deductible is $500 and your $2,000 laptop is stolen. The insurer will pay you $1,500 ($2,000 - $500). The other primary factor is the amount of coverage you choose. Many insurance policies will cover the basics: Personal Property: Think stolen laptop or bicycle. Lemonade, for example, states that their policy covers you “anywhere in the world.” Loss of Use: The assistance provided if your home becomes unlivable due to a natural disaster or other event. Personal Liability: Legal and medical costs if you are responsible for injuring someone or damaging their property. Medical Payments: Minor medical expenses if someone is injured on your property, regardless of fault. Extra coverage is available but will increase your premium. Extras include coverage for fine art, jewelry, cameras, musical instruments, and other big-ticket items not covered with a basic policy. Other specifications may be regional, like earthquake coverage. The most important reason to get renter’s insurance, or really any type of insurance, is to protect yourself financially from unexpected losses. Getting a handle on how insurance works is one of those personal finance lessons that really pays off, especially for college students learning to stand on their own two feet.