In these two weeks, we are discussing insurance tips that every college student should know. When we discussed personal property a few days ago, we talked about the possible need for renter’s insurance. If you need it, here is some information to help.
There are two kinds of renters insurance policies.
You can choose from actual cash value or replacement lost when you’re looking into renters insurance policies. If you get actual cash value, it pays for what it will cost to replace your possessions minus a deduction for depreciation. If you get replacement cost, it will pay to buy a replacement item. The replacement cost policies are more expensive, but it makes sense because they also offer more protection.
Be on the lookout for discounts.
When it comes to insurance, there are ways to get discounts and the most for your money. Often times, if you purchase more than one type of insurance with the same company, you can get a discount. Check with your insurance agent now to find out what kind of deals they may have when you add additional coverage.
Consider a higher deductible.
While it doesn’t sound ideal, you may want to investigate the benefit of choosing a higher deductible. By doing this, you will be able to have a lower premium.
Choose your own insurance company.
There are more and more landlords that require their tenants to have renters insurance as a condition of the lease. They may even go as so far as to suggest an insurance company for you. Keep in mind that just because they suggest someone, doesn’t mean that you’re required to go with that company.
Because Bob Johnson Insurance is an independent agent, we can help you find the best insurance company for you. We can show you what is offered by multiple companies and provide the information that allows you to choose the right balance between price and coverage for your specific situation.
Questions for Your Insurance Review
- Explain the types of renter’s insurance that is available.
- How much coverage do I need?
- Are any discounts available?
How Long Will It Take to Get Answers to My Insurance Questions?
You should be able to get most (if not all) of your information with a phone call or two. At Bob Johnson Insurance, we are always ready to provide the answers to your questions. Give us a call at 865-922-3111.
In these two weeks, we are discussing insurance tips that every college student should know. Our first tip deals with personal property. Know what you have AND that your insurance will cover your student’s possessions.
Know What You Have: Make a List
Keep a list of all of the items the student is taking with them to school to make sure you have enough coverage for everything. It’s also helpful to have photos and receipts if possible.
Make Sure Your Coverage is Adequate
Personal Property Coverage.
Personal property can add up quickly. The student may be taking gaming consoles, expensive clothing or jewelry, laptops, tablets, smartphones, TVs, MP3 players and other things that have high value and could be easily stolen. Depending on the item, it may need special coverage due to its higher value.
Most policies provide ten percent of personal property coverage for property owned that is kept at a residence other than the insured’s. What this means is that if the parent has $100,000 worth of personal property coverage, it will cover up to $10,000 worth of coverage for the student’s property while living in a dorm.
Life happens. Sometimes events are within our control and sometimes they are not. Although most homeowners insurance policies cover personal property, they do not usually cover damage to property rented. In the majority of cases, any damage to a dorm room or an apartment wouldn’t be covered.
If the college student is living off-campus in a rented home, the policy of the parents may not provide coverage for the student’s property. This is where renters insurance comes in. In most cases, the landlord’s policies usually only cover the structure itself and not the possessions of the renters.
Personal Property Questions for Your Insurance Review
- How much personal property coverage is available for my student who is away at college? Is it adequate?
- Does my student have liability coverage in case there is damage to the dorm or the residence (apartment, house, condo, etc.) where they are staying? If so, how much coverage and is it adequate? If not, how much do they need?
- My student will be living in a [dorm, house, apartment, etc.]. Does my student need renter’s insurance? If so, how much?
How Long Will It Take to Get Answers to My Insurance Questions?
You should be able to get most (if not all) of your information with a phone call or two. At Bob Johnson Insurance, we are always ready to provide the answers to your questions. Give us a call at 865-922-3111 or click here to contact us.
When it comes to reviewing your policy, be sure to contact Bob Johnson Insurance today. We are more than happy to go over your coverage and see where you may need additional protection. Since your teenager likely doesn’t have his or her own policy, it’s imperative that you make sure that he or she is covered before sending him or her off to school.
When doing a review, there are two common areas that may need to be updated or amended. Today, we are discussing renter’s insurance.
If your teen is staying in off-campus housing, does the university provide coverage? If not, then renter’s insurance is a good idea. Even if he or she is living in a dorm, it’s always good to figure out what may or may not be covered in the school’s policy.
The other thing to consider is if your teen is living out of state. Since there may be different rules regarding insurance coverage and requirements, a review is necessary to ensure that you’re not missing anything. Some states may require more coverage than others, so it’s imperative that you fill in any gaps that might come with the territory.
How Long Does it Take?
Reviewing your coverage takes just a few minutes on the phone. Give us a call at 865-922-3111.
More Back to School Safety to Come
Our focus this month is all about school safety. Like and Follow us on Facebook and Follow us on Twitter to keep up when we release new tips!
College is expensive enough without finding out too late that an accident or theft isn’t covered under parents’ current policies.
Coverage of personal property
Most homeowners policies provide 10 percent of Coverage C (Personal Property) for property owned by an insured while it is at a residence other than the insured residence. That means if the contents of a policyholder’s home are insured for $100,000, a student’s property up to $10,000 would be covered if living in a dormitory – provided the damage is caused by a covered peril and the student meets the definition of a insured. Certain items, such as jewelry or expensive electronics my require special coverage or insuring it as a “scheduled item”.
There usually is an exclusion for damage to property rented to an insured, so generally damage to a dorm room or apartment would not be covered.
If a student’s needs can’t be met under their parents’ current policy, don’t forget about the asking for a Renter’s Insurance quote.