Should I Buy Renters Insurance If I Live In A Dorm?

Dorm living gives you an excellent opportunity to live independently without worrying about many of the responsibilities that come from finding off-campus housing and dealing with a landlord. However, you do need to think about whether you need renters insurance to protect your belongings in this type of housing.

What is Renters Insurance?

This type of insurance policy covers you and your belongings in certain situations. For example, if your personal property gets stolen or damaged in a disaster, then the policy would pay to replace the items or repair them. If someone gets injured and you're responsible, or you break their belongings, then the policy would cover your expenses.If your dorm room is uninhabitable and you don't have a place to live, some renters insurance policies will cover the expenses that you incur for temporary housing. For example, it can cover your hotel bills.

Are You Covered by Your Parents' Insurance Policy?

You may be able to skip getting renters insurance at all if your parents have their own renters or homeowners policy. The terms can extend to their children under 26 of age when they're living on campus. It's worth checking to see whether this applies to your situation so you can save the extra money.Some insurance policies have different coverage limits for your property at the dorm because it's considered away from home. If that's the case, you'll need to confirm that the limits are high enough for your possessions. Your parents may request that you get your own renters insurance policy so that you don't end up making claims on the more expensive homeowners insurance policy.If you live in off-campus housing, it's unlikely that your parents' homeowners insurance probably won't cover your belongings or liability.

Should You Get Student Insurance or General Renters Insurance?

Some insurance providers offer a type of insurance coverage that's specifically for students. They have features that are specific to the unique needs of college students, such as covering gaps from their parents' insurance. Your college or university may offer this directly, which makes it a convenient option to roll into the rest of your student housing payment.

General renters insurance works well if you plan on moving to off-campus housing in the future or if you prefer to have more flexibility on coverage options. You may have a limited amount of coverage with the insurance provided through the school, which could lead to some major issues if something bad happened to you, your dorm room guests, or your stuff.

How Much Coverage Do You Need?

The exact coverage that you need depends on the value of your personal property, and whether you have items that may fall under specialized handling. If you have a lot of electronics, for example, you would want to get a policy limit that would allow you to easily replace these items with an equivalent model.High-end jewelry and musical instruments are two categories that may need to be handled on an individual basis, as they may be difficult to replace or exceed your entire coverage limit. Generally, renters insurance have low premiums and deductibles compared to other types of policies.

What is a Covered Risk?

Your dorm insurance policy has a list of covered risks, which are situations where your insurance covers your personal liability or replacement costs. Pay close attention to this part of the policy, as you don't want to purchase insurance and end up not getting the coverage that you expected for your personal property.If you know that there's a particular risk factor on your campus that could lead to your belongings getting stolen or destroyed, make sure that the covered risks include these scenarios.

How to Shop for Dorm Insurance

If your parents' policy doesn't cover you or they prefer that you get your own insurance, it's time to go dorm insurance shopping. The best place to start is with your school to see whether they offer this coverage. If they don't or it doesn't seem like a good deal, start comparing quotes from various insurance providers.

Start with your automobile insurance provider, as you can often get discounts when you have multiple policies through the same company. Compare it with quotes from a few other companies and make sure that you create a complete inventory of your personal belongings. You don't want to choose a low coverage limit on accident and run into problems with your studies if your computer gets broken.

You can keep your monthly costs low by choosing a higher deductible, but consider whether you'll have that lump sum on hand in the event that something happens. If you choose one that's too high, you could set yourself up for a lot of frustration in the future.

Renters insurance is a valuable policy to have even in college dorms. You don't have to worry about the cost of replacing your stuff or paying for personal liability expenses when they fall under this plan. Since the monthly costs are relatively low, it's easy to fit in nearly every budget even when you need high limits.