Do students need insurance?

Students attending University or College have a wealth of essential technology: cell phones, computers, iPads, TV's, digital cameras, MP3 players. Not to mention printers, scanners, web cams, speakers, headphones, flash drives, zip drives, software, and DVDs. These can represent a fair chunk of their parents' wealth.

As they are vulnerable to damage, theft and other losses in dormitories or in off-campus accommodation, student “content” insurance is essential. Some college residences provide basic insurance, but all students should make sure that all their possessions, not just electronics, are covered.

Students may well ask why they need insurance, thinking that will be covered by their parents home owner's insurance. This is unlikely to be the case and students are well-advised to set up insurance coverage before they leave to start their studies. Your insurance should cover transporting your goods to university or college which is good in case you leave something on the bus, train or plane. Insurance coverage cannot be backdated, so if you fail to make arrangements before you leave and something happens to your belongings in transit you will not be able to make a claim.

Laptops and cell phones may need to be listed individually on a "contents" policy. The details in the policy will allow for rapid replacement which is very important to keep students in touch and able to continue their studies. Anther aspect of insurance to consider is whether anything you leave in your dorm room is covered while you are away for the vacation. It may be necessary to add coverage for your belongings when you take them out of the dorm. This applies particularly to laptops and cell phones which can so easily be dropped or mislaid. Check the policy carefully and add this coverage's if they are not part of the package.

In the event that you need to make a claim, you may need some documentation. In the case of theft or accident, you may need to furnish a police report, so keep the case number on hand. For items that are not itemized in the policy, you may be asked to provide a receipt in order to prove you actually owned the item you are claiming. Making and keeping a detailed inventory of the possessions you are taking to school with you, could be very useful if you need to make a claim. List serial numbers, date of purchase, purchase price and so on.

Student contents insurance is not automatically renewed. You will get a renewal letter at which point you can decide whether or not you need to buy a new policy for the next academic year. Obviously, you will need to pay again, but you can delay the starting date of coverage to coincide with your return to college.

How much coverage you need will depend on the total value of your belongings as well as your accommodations. A secure dormitory may be less risky than a shared apartment downtown. Only your insurance agent can tell you which policy is best for you.