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Renter’s insurance saves trouble

By Joel Petterson

Wednesday, March 4, 2009

A fire, theft, flood or any number of other incidents could prove devastating for students living away from home if they haven’t taken the time to protect their possessions.

“Several times a year we have students come in who have had personal property destroyed,” said Bill Larzalere, chief litigation attorney with Legal Services for Students. “The first question we ask them is ‘Do you have renters insurance?’ and, unfortunately, most of the time the answer is ‘No’.”

Renters insurance primarily covers the tenant’s personal property in case it is damaged or stolen. Any damage from fire, tornado or burglary is covered under most renters insurance plans.

“It covers anything that can be picked up and moved,” said Kayla Furden, who works at a local insurance company.

It can also cover additional living expenses in case a tenant is forced from their home, liability if a tenant’s negligence causes injury to someone else, and medical payments for anyone injured on the rental property.

“If anyone comes into your apartment and slips and injures themselves, you can be liable,” Larzalere said.

Many students don’t consider renters insurance essential, Larzalere said.

But for about $8 to 15 a month, renters insurance can save students from a world of hurt if anything ever happened to their personal possessions.

Although landlords have their own insurance that covers a house or apartment, any items renters bring in are their responsibility.

The University housing does not cover students for their possessions, either. So they could be at risk without insurance, as well.

Nearly every insurance provider sells rental policies, and different amounts of coverage are available.

Matt Walker, community manager at The Reserve, said the complex didn’t require tenants to have insurance, but it did strongly encourage it.

“We bring in a vendor every year on move-in day to offer insurance to the students,” Walker said.

Most complexes don’t require insurance, because their own facilities are covered, and only the occupant’s possessions are at risk. Any damage that results from the complex’s negligence would be paid for by the owner, but Larzalere said this can often be very complicated.

“If you do ask a landlord to pay for personal property damage, most of the time they’ll say no,” he said. “Then you have to go to court and you must prove that the damage was the landlord’s fault.”

This, he said, can be a very costly and time-consuming process, which can be easily avoided with a renters insurance policy.

Larzalere and Walker agreed renters insurance was a necessary investment.

“It’s something every student should have on their checklists when they decide to move off campus,” Larzalere said. “We always have students come in who wish they had bought renters insurance.”

Sometimes students can even be covered by their parents’ homeowners insurance if they still qualify as a dependent.

For students who need to purchase their own insurance, it’s important to make sure to get the right coverage, Larzalere said.

“When you get insurance, be sure to include every one of your possessions on your inventory,” he said.

Walker emphasized the importance of being thorough when purchasing a policy.

“When I was a student, I was told to list everything from my toothbrush to my stereo and calculate how much it would cost to replace every single thing I owned,” Walker said.

Some policies include only coverage for the actual cash value of the possessions, which would be less than the cost to replace them new, which is covered in other policies. Replacement coverage may cost a little extra, but Larzalere and Walker agreed that was worth it.

“Put yourself in a scenario where you’ve lost everything. What check do you want written to you?” Walker said.

Walker also suggested shopping around and checking different rates. The Kansas Insurance Commissioner’s Web site, www.ksinsurance.org, provides many resources to help first-time renters choose the right policy. Here, students can access guides and publications about renters insurance before they purchase a policy.

— — Edited by Chris Hickerson

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