By now, most of us know what insurance is, although maybe not entirely sure how it works or what makes a good policy. When it comes to the necessity of insurance, there is often some debate on what is covered, what’s a reasonable price, and if it is really something that people should invest in. College is one of the most expensive and risky investments a family can make. Still, many people may feel like insurance is unnecessary or unaware of what is included in a student renters and tuition insurance plan.
We break down all the misconceptions and myths surrounding college student insurance.
Fact or Fiction – 8 Misconceptions About the Value of Insurance for College Students
1. College students can’t afford renters or tuition insurance.
Fiction: Renters and tuition insurance are pretty affordable. In fact, a monthly renters policy with GradGuard costs as little as a Chipotle burrito meal! Students can also get coverage for as little as 1-2% of their overall tuition expense for tuition insurance, including room and board and academic fees.
2. My landlord will likely not replace my things if they’re stolen or damaged.
Fact: Presumably, your landlord has insurance that covers the building, but not what’s inside. So, if your backpack is stolen or your laptop is destroyed, you will be the one to replace it. Having a renters policy is essential in giving you peace of mind that your things will be protected if something happens.
Let’s take it one step further: GradGuard’s Renters Insurance follows you wherever you go. If your bike is stolen while running an errand or if your suitcase is taken while studying abroad, your renters policy has you covered.
3. My school has a refund policy, so I don’t need to pay for tuition insurance if I have to withdraw.
Fiction: Yes, your college or university indeed has a refund policy that is often only good for the first few weeks of classes. Beyond that, nearly all institutions don’t provide refunds if you were to completely withdraw, even for a medical condition such as anxiety, depression, or Covid-19. Tuition insurance can help protect you so you don’t need to rely on this if you need to withdraw for a medical emergency.
4. My stuff doesn’t cost that much.
Fiction: Find out just how much your stuff is worth — and how renters insurance can cover it all. When you sit down to think about all the things needed to attend college, it can add up – and fast! If the unexpected were to happen, do you have the budget to replace everything you own? Renters insurance can help you get your money back so you don’t have to stress about how you would replace a stolen or damaged laptop or bike.
5. Renters insurance covers more than just my personal belongings.
Fact: The fantastic thing about a renters policy is its wide range of coverage! Not only is your stuff covered in your residence, on campus, traveling to and from school, and studying abroad, GradGuard’s renters insurance includes liability coverage and loss of use protection.
Liability and medical coverage – If you unintentionally damage your place of residence, you may be held responsible for damage to your apartment building or injuries to guests. Liability coverage may help you pay for any medical fees, property damage, or court costs in this situation.
Loss of use protection – This is important to help cover the costs of food and hotel rooms if your home becomes uninhabitable due to a covered peril like a fire in your residence hall.
GradGuard’s Renters Insurance provides these exclusive student endorsements, including a low $100 deductible and no credit scoring.
6. I am young and healthy, so nothing will happen to me.
Fiction: There is a reason the unexpected is, well, unexpected – you can’t and won’t see it coming. Even though many college students are in good health, being in college doesn’t magically make you invincible. Addressing the fact you may need to withdraw from school for any unforeseen reason is uncomfortable, but you know what’s even more concerning? The idea of losing thousands of dollars.
No one wants to think about ever needing to file a claim with a tuition insurance plan, but it can reimburse the cost of a completely withdrawn term in the event of a covered illness or injury.
7. My roommate has renters insurance, so I’m already covered.
Fiction: While you and your roommate might share snacks and a Netflix account, their policy usually covers their things, not yours. Getting your own policy allows you to customize protection that’s perfect for what you need. And if your entire residence is unintentionally damaged, the reimbursement costs can climb quickly. Separate policies will ensure all of your belongings are covered.
8. Epidemics including Covid-19 are a covered reason with tuition insurance.
Fact: GradGuard tuition insurance plans purchased on or after February 18, 2022, include an epidemic coverage endorsement, which can provide protection when an insured student completely withdraws from school for the covered term due to becoming ill with any epidemic or pandemic disease, including COVID-19.
With life comes a lot of responsibility. We are here to help guide and educate you on the risks of college life. Now you know the truth about college renters and tuition insurance!