Why Renters Insurance for College Students Is a Smart Move

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Why Renters Insurance for College Students Is a Smart Move

Staff Writer · Apr 12, 2010

Paying for college is overwhelming if you don’t have scholarships to pay for full tuition. Renters insurance is a smart way to hold on to as much money as you can in order to pay for two, four or more years of higher education. Without it, you may have to pay to replace your belongings or defend yourself in court. That money could be put to better use on books, tuition and rent.

Landlord’s Insurance vs. Renters Insurance

You landlord has rental property insurance or a similar policy on the apartment. Your landlord doesn’t want to run the risk of a college student destroying the apartment. He figures that you have no money to make repairs or restore the apartment structure, and therefore he needs insurance to repair the apartment, because your security deposit is not sufficient. His insurance covers the appliances and furniture that he owns, but not your things.

Renters insurance protects everything that you own at the apartment, in structures attached to the apartment, like in a garage, and some policies will cover items you have in storage or at your parent’s home. If you don’t have renters insurance, then paying to replace things is a financial drag that can make it hard for you in the college years. You’ll have to work more hours to make more money while taking classes to replace what you’ve lost, or sell some of what you have left. That’s too much stress that can be avoided with affordable payments of less than $15 on a monthly basis.

Roommates Renters Insurance

It’s not smart to buy personal property together with roommates, such as electronics and furniture. You don’t know how long you’ll remain together in the apartment, because the reality is roommates break agreements often. However, if you’ve already done so, you and your roommate will need to agree to buy renters insurance to cover those belongings if they total a significant amount. For example, if you used credit cards to buy $3,000 or more worth of “stuff”, then you should add each other on your separate policies in connection with those things. Be careful though, because you want to do this correctly to ensure that the property is covered. Each of you should talk through the situation with your insurance agents, as insurance companies have their own methods and policies.

Avoid Expensive Legal Costs

Paying for college is hard enough; you don’t want to add expensive legal fees to the mix. That’s why renters insurance is a smart move, because you’re paying low payments in advance, just in case you find yourself in court. Some people argue that the chances of being sued for liability are low, and renters insurance is a waste of money. If you follow that train of thought, you’ll be gambling your college education, because your wages, car, personal items, funds in a bank account and anything else that can be taken from you to satisfy a court judgment will. Trying to go to school after that is very difficult. Why take the risk?

Get renters insurance while you’re in college to save yourself money and legal hassles. It’s a smart move.

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