Homeowners Insurance Lowdown

I’m going to talk to you about something that pertains not to the loans you take for college but to the costs you incur when in college and how you can reduce them. If you are in college and live off- campus, you should probably consider purchasing renters' insurance.

I know this may sound incongruent with your ideas of wanting to save money in college. When I talked to a few student friends of mine, their first reaction was that the landlord does have insurance so why should we shell out more money? Good argument. But remember, when you leave home, you are probably coming with quite a few of your personal items like your computer, stereos, and probably bicycles. All this will be worth a few thousand dollars. Do you think your landlord’s insurance will cover all this personal property of yours? What happens if there is a burglary and all your stuff gets stolen, or a fire rages through the apartment you stay in and ravages everything. What are you left with? Nothing.

If you take out a renters' insurance, it will protect personal property against damage or loss and will also protect you in the event that someone is injured on the premises. You should carefully consider the type of coverage you require. Personal property coverage applies only to repairs or replacements of damaged, destroyed or stolen personal belongings. Liability insurance provides coverage against a claim or lawsuit resulting from injury or property damage to others caused by an accident that took place on your property. Monthly premiums for renters' insurance average between $15 and $30, depending upon the home's location and size, as well as the value of the policyholder's possessions.

As I always say, before you purchase the insurance policy, confirm that you are dealing with a legitimate company by contacting the Insurance Department's toll-free number at 1-877-881-6388.

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