Tenant's Insurance
Why do I need insurance?
Renting an apartment or house presents certain risks and responsibilities. Baylor
University does not provide insurance coverage for individual students or their
personal belongings. Landlords insure their buildings but not the belongings
of their tenants. Therefore, students should obtain insurance through agents
of their choice. (Do not assume you are automatically covered by your parents'
home owner's policy.)
What things are covered?
Your personal property is covered, whether it is in your home or elsewhere,
even in your car. A standard tenants policy covers furniture, clothing, and
most other personal belongings for their actual cash value at the time of loss;
but it provides only limited coverage for furs, jewelry, silver, and other specific
valuables. Ask when you buy the policy about computers, stereo systems, or other
costly items. You may want to add specific coverage for these items in your
general policy or purchase a separate policy.
The tenants policy typically insures your household contents and personal belongings against
losses from:
- fire or lightning
- explosion
- smoke
- windstorm or hail
- vehicles
- falling objects
- riot or civil commotion
- theft
- aircraft
- plumbing problems
- vandalism
- electrical power surges
(This policy will also cover the damage to or theft of personal belongings in your car.)
Tenants insurance provides liability coverage for injuries or damages caused
by you or even your pet. It includes the legal cost of defending you if you
are sued. It does not apply to liability resulting from the use of an automobile.
Your policy may also pay for any increase in living expenses necessary when
your apartment cannot be occupied because of the types of damages described
above. For example, if your home is badly damaged by fire, you may have to live
in a hotel and eat in restaurants while it is being repaired. Your insurance
company will reimburse you, up to the limits stated in your policy, for the
difference between these expenses and your normal living expenses.
How do I select a policy?
First, estimate the value of your household belongings. Begin by making a list
of the contents. Include any furniture you own and major personal belongings,
noting the prices and dates of purchase where possible. Keep store receipts
and photographs of major items in each room with your list. It's a good
idea to keep a copy of the inventory and photographs in a safe place away from
home.
Next, shop around for the best value. Ask friends to recommend insurance agents
or companies from which they have had good service. Check the yellow pages.
You may wish to contact several companies. Discuss any concern you have about
special coverage. Ask questions about anything you don't understand.
The greater the deductible you pay (the amount of loss you pay for before the
insurance coverage takes over), the lower your rates. An average deductible
is $100. Prices for renter's insurance vary from $50 to $100 annually.
The rate depends on the location of your apartment, the type of construction,
and how the company rates the university area in terms of crime. It is smart
to shop around and compare insurance companies. Also, be aware that some companies
refuse to sell insurance to students living in a university area.
Finally, read your policy thoroughly. If you have claims, report them promptly
and accurately.
This information taken from Tenants Insurance Basics by the Insurance Information
Institute