August 17, 2021
And just like that, we are nearing the end of summer. Around the country, parents are packing up their college kids and sending them off to their next chapter.
Preparation for the journey includes the typical purchases like bedding, dorm decorations, laptops, techie items, and other general supplies. But often overlooked is a chat with your insurance agent to make sure your child starts college properly insured.
A discussion with an Avery agent can reveal whether or not insurance is needed.
For instance, if your college student attends college while living at home, or lives in on-campus housing, they are typically covered by their parents’ homeowner’s insurance.
However, students living in an off-campus apartment will benefit from renters insurance in his/her name to cover losses or liability claims. Renters insurance doesn’t cover roommates. It only covers the insured policyholder. Each roommate should have their own renters policy.
There are three parts of coverage to review:
- Personal Property. Protects the value of your belongings from a covered event, such as fire, windstorms, lightning, and certain types of water damage. Renters insurance may also help cover theft of your belongings. Common exclusions include flooding and earthquakes.
- Liability. Protects you against a claim or lawsuit if you accidentally hurt someone or a visitor is injured in your rental. Think icy steps or rowdy house party. Yikes!
- Loss of Use. Provides coverage for additional living expenses if your rental becomes unlivable due to damage.
When choosing your renters insurance policy, you’ll likely have to select between “actual cash value” and “replacement cost” coverage. The type of protection you choose helps determine how much you’ll be reimbursed for a covered loss.
Actual cash value coverage considers depreciation when assessing how much the policy will pay out after a covered loss, such as laptop theft or damage caused by a lightning strike or power surge. Maybe you spent $1,000 on your laptop several years ago, after calculating depreciation, that’s not necessarily what your insurance company will cover if you file a claim today.
Replacement cost coverage provides for the cost of a replacement laptop, of similar make and model, in today’s dollars. Premium costs for this coverage may be higher than the cost of actual cash value coverage, but you have greater protection.
“The premiums are very reasonable for the peace of mind it offers parents,” said Lauren Gordon, Director of Personal Insurance for Avery. Some factors that influence your premium amount include the level of coverage you want, where you live, if you own a pet, and your credit score. “For added savings, consider bundling your auto insurance for possible discounts on your renters policy,” continued Gordon.
Let an Avery agent explain what coverage options are available to you.
Once you get the policy, it’s a good idea to keep a home inventory; a succinct list of possessions in your apartment — it can be a big help if you ever need to file a claim.
To create a home inventory, make a list of your items and back it up with relevant information such as the type of item, the year you purchased it, its original price and any other relevant details. If possible, attach sales receipts and any appraisal documents. Include the serial number for appliances and electronic equipment.
Today’s technology makes it super easy to capture images or videos of each room. Be sure to narrate the video along the way to point out particular assets.
Whether you’re living in the dorms or are sharing an apartment with friends, an Avery agent can help you choose the coverages you need as a college student. Call today!