- Division of Insurance
As Massachusetts’ college and university students’ move away from home and return to school, the Division of Insurance (DOI) is reminding them to review their insurance needs to ensure that they are properly covered. A recent survey conducted by the National Association of Insurance Commissioners found that only 21% of young adults, ages 18 to 27, had renters’ insurance.
Though landlords and management companies typically have their own insurance policies in place, those generally cover the building itself. The landlord policy does not cover a tenant’s personal belongings. This means that if the building catches fire, or if the shower in the bathroom in the unit above you starts to leak, or if your unit is broken into, you likely will not have any coverage to help you replace any items that were damaged or stolen.
If your lease agreement does not require it, the DOI strongly encourages those renting an apartment or house to consider obtaining this coverage. Renters’ insurance provides protection for the personal belongings owned by those who are covered under the policy. Your agent or insurance company can help you understand what the policy covers, whether there are any coverage limitations, and if certain types of electronic equipment may need additional coverage beyond what is in the policy. Additionally, renters' insurance may provide coverage to pay for alternative living accommodations if a storm, fire, or other covered peril impacts your ability to live in your apartment.
Young adults worried about the cost will find relief in knowing that renters' insurance premiums are relatively inexpensive, usually costing about $30 or less per month, depending on where you live and how much coverage you purchase. Higher amounts of coverage will result in a higher premium payment.
College students living in a dorm room may be covered under their guardian’s home insurance policy. It’s advised that college students check with their family or insurance agent to understand what coverage might already exist.
Finally, students away at school and not using a vehicle should be sure to contact their family’s automobile insurance company to determine whether they can be temporarily removed from their family’s personal automobile policy to help save money.
More information about renter’s insurance can be found on the DOI website at Renters Insurance | Mass.gov
