renters insurance

What is Rental Insurance and Do College Students Need It?

It is that time of year where college students are heading back to class. For many new college students this is their first time away from home. This is an exciting time, and also a time to learn new life lessons. Now that you are officially an adult, it is the time to learn about adult responsibility. Insurance. Every adult is responsible for some type of insurance, such as health, life, auto, and homeowners or rental insurance. Many college students are unaware that they need insurance since they are renting. The truth is, they do. Let’s learn more.

What is Rental Insurance?

Rental insurance is like homeowners insurance, but for renters. It covers lost, stolen, or damaged possessions. It  covers accidents and injuries for guests at your home. It also covers additional expenses if your rental is damaged and is unlivable.  There are limits to the coverage amounts for these, so speak with your agent to learn more.

What if Your Stuff is Lost, Damaged, or Stolen?

While many students think about their college experience as being a fun experience, there are things that can go wrong. For instance, your rental could be damaged from a storm or a fire. Unfortunately, these things are common and can be devastating. Imagine how much it would cost for new clothes, a tv, a phone, furniture, and a computer. That could easily be thousands. Your rental insurance with pay for those items up to the limits of the policy.

Another very common, unfortunate event is theft. Imagine you come home to find your brand-new electronics are missing. That new expensive laptop you just got for school is gone. How will you do homework without a computer? This is where your rental insurance kicks in. They will pay out up to the limits of the policy.

What if there is an injury at your home?

Imagine you are having a party or a study session at your home and a glass is dropped and your guest gets an injury that requires stitches. Maybe a guest trips and breaks their leg. This can happen to anyone. Who is responsible for the ER trip? You very well could be. A trip to the ER can be very expensive. Your rental insurance can pay for their medical bills. If that guest decides to sue you, your insurance will help with your lawyer fees, up to the limit of your policy.

If Your Rental Is Uninhabitable, Where Will You Go?

If you can’t live in your rental even for a few days, you may have to go to a hotel. On average, a regular hotel costs about $130 per night. It won’t take long for that to pile up. Also, your food budget may increase if you don’t have a kitchen. You will be forced to eat out. Rental insurance takes care of the additional expenses that you will incur from being displaced. Again, your policy will cover up to the terms you’ve selected.

As you can see, rental insurance is very important. Without it you could be on the hook for any expenses from theft, damage, or injury which can result in a huge bill. For more information speak with your insurance agent to find the best policy for you.