Back to College 2023: APCIA Says Don't Forget Renters and Auto Insurance for College Students

CHICAGO, Illinois, Aug. 3 -- The American Property Casualty Insurance Association issued the following news release:

With many college students, and their parents currently in the process of buying expensive electronics, dorm furnishings and other essential items for college dorms or apartments, it is important to ask several important insurance-related questions to make sure these personal belongings are adequately protected, says the American Property Casualty Insurance Association (APCIA).

The National Retail Federation (NRF) predicts 2023 will be the most expensive back-to-school shopping season ever. The NRF estimates families with college age students will spend an estimated $94 billion, about $20 billion more than last year's record. This is an average of $1,366.95 per person, more than $167 higher than last year. NRF reports electronics spending for back-to-college students will rise 12%.

"It is important to add a quick insurance check up with your insurance agent or company to your back-to-school to do list," said Karen Collins, APCIA vice president, property & environmental. "Parents and college-bound students frequently buy electronics, bikes, scooters and other furnishings for dorms and apartments when preparing to go back to college. A renters policy can be an inexpensive way to provide parents and students with peace of mind that personal possessions are covered and will be replaced should something happen, such as fire or theft. Renters insurance can be easily bundled with auto insurance which makes both more affordable."

"Many renters don't think they need insurance and believe their landlord's insurance will replace their personal belongings. However, the landlord's policy generally covers structural damage to the home or apartment, not the personal belongings left inside," said Collins. "Renters insurance provides important protection such as Additional Living Expense (ALE) coverage which can help with expenses should the apartment become uninhabitable due to a covered loss such as a fire. Liability coverage provides protection if a guest injures themselves while visiting your apartment, or you are found financially responsible for any damage caused to other units, such as a fire or overflowing sink or tub that floods the unit below. It's always good advice to read over your policy to understand what is, and what is not covered."

Don't forget to talk to your insurance agent or company to understand your auto and homeowners policy and how it impacts your college-bound student. There are a variety of factors to consider, and insurance companies charge different rates and have different policies. Be aware a homeowner's policy typically provides some coverage for property away from the primary residence premises, but there could be some limitations. Be sure to talk to your agent or insurance company to understand your coverage.

"Pick up the phone and have a conversation with your agent or company about your unique needs while away at school," said Collins. "It may be cheaper for the student to stay on the parent's policy unless they have moved out permanently and established their own residence. A quick conversation can tailor the policy and identify ways to save money during these continued inflationary times."

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Original text here: https://www.apci.org/media/news-releases/release/77035/