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student insurance

Health

Healthcare Financing Resources for Low-Income College Students

September 21, 2020

Let’s face it: learning is its own reward, yes. But you’re in college primarily to build a better life for yourself and your family. You might be getting your education to escape the life of struggle that you have watched your parents endure.

But building a better life ain’t cheap. And, right now, what money you have goes mainly to school and to the essentials of living. Ponying up for private health insurance might feel like a luxury you can’t afford right now. 

Yet without that coverage, you’re also probably tempted to let your regular healthcare fall by the wayside. After all, you’re young and your physical and mental health care just might not feel like a priority right now. That is, not until you really need it. 

This article shows you how to finance your healthcare when you’re a college student living on a budget.

Know Your Options

When you’re looking to finance your healthcare, the first thing you should do is explore your eligibility for coverage under your family’s plan or through your university health system. In many cases, full-time college students can qualify for coverage under a parent’s group health insurance plan up to the age of 26.

If that doesn’t work out, you might be eligible for lower-cost student health insurance coverage through your college, university, or trade school. The chances are especially good if you enroll in a work-study program through your school.

Don’t Forget the Marketplace or Medicaid

If it turns out you are not eligible for coverage under your parents’ or school’s plan, don’t despair. There are still options. For example, depending on your income, you might qualify for Medicaid, which will allow you to enjoy good benefits at a relatively low monthly premium. 

The maximum income cutoffs for Medicaid, however, can be pretty stringent. If you’re above the threshold but still don’t earn enough to bear the often ridiculous costs of private insurance, you might be able to get coverage under the Affordable Care Act (ACA). 

With the ACA, the percentage of uninsured Americans dropped from nearly 16% to just over 9%. Through the Marketplace, you can choose the level of coverage you want or need — and the premiums you can afford.

Don’t Forget the “Extras”

Getting good healthcare is about more than funding your medical care. It’s also about taking care of the whole person, mind, body, and spirit.  And that should include everything from mental healthcare to dental care. 

After all, life is stressful, and going to college on a shoestring budget is especially so. But getting care doesn’t have to be expensive. Case in point: you have a lot of options today for accessing low-cost therapy. This includes online therapy apps to help you access immediate, on-demand support from the safety of your own home if you are battling anxiety or depression.

And while you’re taking care of your body and your mind, you mustn’t forget your smile! Living on a budget doesn’t mean you have to put off your dental care. Even if you’re in need of a non-essential or cosmetic procedure, such as a crown or veneer, there are funding options that don’t require you to break the bank.

If you set up a budget and cut out some of the extras you’re spending on unnecessary fees or on little luxuries, like your morning coffee run, you can probably cover the cost of your new smile or your other healthcare services pretty easily.

The Takeaway

Going to college on a shoestring budget is tough. But it doesn’t mean you have to do without the physical, mental, and dental healthcare you deserve. From finding coverage through your school to tapping the resources of the ACA to taking advantage of online therapy apps and dental financing, there are options available to ensure you receive the care you need.

Adulting Uncategorized

Why You Need College Renters Insurance

July 13, 2020

As you start to prepare for the new semester, there is always something new around the corner that you forgot to think about when heading off to college. Did you pack enough clothes? Do you have your laptop and smartphone? Shower caddy? Dorm bedding?

These might make the top of your move-in list, but don’t forget to add renters insurance! GradGuard makes getting renters insurance easy and eliminates the hassle of understanding your policy or wondering if something is covered.

Our policy perks include:

  • Worldwide personal property coverage
  • Protection against the theft of electronics
  • Replacement cost value
  • Low deductibles
  • No credit score or cosigner required when purchasing

Not only do we protect your stuff, but we protect the residence you are living at with our liability coverage. Ever set off a sprinkler system in your residence hall? We sure hope not! But if in the event it happens, we are there to protect you.

Watch the video below to see why renters insurance is important for college students:

You can learn more about the protection we offer by visiting our website. Remember, we sell policies for both on-campus and off-campus housing; so even if you aren’t living in the dorms this year, be sure you take us with you.

Adulting Uncategorized

The College-Bound Guide to Insurance: Be Sure You’re Protected as You Head Off to School

June 26, 2020

College students need a lot of supplies for college life. From bedding to electronics to school supplies, the costs can add up. In 2017, families spent as much as a mortgage payment or more on school supplies and that’s not counting tuition!

Is your college investment protected? Certain insurance products can help your family protect what you’ve invested in your student’s college experience, from personal property, to the cost of a trip to the campus health center during flu season.

In The Residence Halls

You’re probably bringing a laptop, smartphone, tablet, TV, speakers, dorm decor, clothes, and school supplies with you to college. Maybe you’ll even bring a bike or some furniture. The cost of these belongings can add up – what would you do if they all needed to be replaced due to a fire on campus? Or if your big-ticket items, like your laptop or bike were stolen – could you afford to replace them? Insurance can help you and your family protect your belongings if you face a loss or damage because of a covered reason, like theft, fire or water damage.

There are two primary types of insurance that can help you and your family protect your belongings while you’re at school: homeowners and renters insurance. If your parents have a homeowners insurance policy, you may already be covered, but be sure to check the specifics of the policy. Many homeowners policies will only cover full-time students living on campus, and often at a percentage (usually 10%) of the policy limits. Be sure to take into consideration the deductible, as well as a claim’s effect on the premium. Renters insurance can be a good alternative in these areas, as renters plans typically feature low deductibles and often low monthly rates.

To make the most of your insurance protection, you should create a home inventory of everything you’ve brought with you to school and how much it cost. Taking photos and carefully taking a record of everything you have will make it much easier to determine what has faced a loss if you need to make a claim. The total cost could surprise you, and knowing how much all of your stuff is worth can help you determine whether 10% of your homeowners limits or the limits you chose on your renters insurance policy are adequate protection.

The New York Insurance Association recommends that students ensure they have adequate insurance protection as well as taking a common-sense approach to protecting their valuables. They offer these tips to help students be mindful of their belongings:

  • Leave valuables at home if possible – While it may be necessary to take a computer or sports equipment to campus, other expensive items, such as valuable jewelry, luxury watches or costly electronics, should be left behind.
  • Mark your electronics – Label electronic items such as computers, televisions and portable devices like iPods with the student’s name or other identifying information that can help police track the stolen articles.
  • Always lock your room door and keep your keys with you at all times, even if you leave briefly. And not just at night—most residence hall thefts occur during the day. Insist your roommates do the same.
  • Do not leave belongings unattended on campus. Whether you are in class, the library, the dining hall or other public areas, keep book bags, purses and laptops with you at all times. These are the primary areas where property theft occurs.

Health

Newfound independence, the stress of classes, dining hall food, all-nighters, community living, partying – the college lifestyle, if unchecked, can take its toll on students’ health. Many schools require that students have health insurance, and for good reason: it can help protect students and their families from the high costs of medical treatments in the case of an injury or illness, like a sports injury during an intramural game or a case of mono.

Many schools offer students a health insurance plan, but often the most inexpensive option is for students to remain on their parent’s plan. Under health care law, young adults are allowed to remain on their parents’ plans until the age of 26. Check with your parents to see if their plan may be an option or speak with a licensed insurance agent to see what’s available to you.

In addition to health insurance, there are many ways students can take control of their well-being throughout the semester by setting time aside to eat well, exercise and manage stress:

  • Eat right. There’s a lot of temptation in the dining halls, but adding a side salad and ensuring that you get protein and vegetables and fruits each day will go a long way to giving your body the vitamins and nutrients it needs. It is important to maintain a varied diet and stay away from eating the same bowl of cereal for dinner everyday.
  • Stay hydrated. Swap sugary drinks for water. Getting 8 glasses a day can help fend off fatigue and keep you feeling good. It can be helpful to carry a water bottle such as a Hydro Flask with you to avoid becoming dehydrated during class.
  • Get sleep. It can be difficult to get enough sleep when there are so many deadlines, due dates, and social events, but you should do your best to get in bed at a reasonable hour and if not, take a nap during the day. Sleep helps your immune system and can help you retain information, so you’re not studying in vain!
  • Manage your stress. College comes with an inevitable amount of stress, but setting aside time to deal with it will make it much easier. Exercise, taking time to relax, reading a book for fun or setting aside an hour to catch up on your favorite show each week will help you unwind and appreciate the many opportunities college presents. If the stress of college life is too much, there are many resources on campus that you can turn too. Don’t wait until it’s too late.
  • Get moving. Exercise is an important part of a balanced lifestyle, and not only will it help you stay healthy, but it will also make you feel good too. Exercise for at least 30 minutes several times a week and try to walk as much as possible. Getting your blood pumping will relieve stress and help you study smarter. Your school may even offer fun classes such as spin or yoga which you can attend with your friends.

Tuition

Perhaps the largest expense of all, more than airfare, a laptop, gas or a flu shot, is tuition for many families. Luckily, this too can be protected by insurance. Tuition insurance can help refund lost tuition if a student should be forced to completely withdraw from school due to a covered reason. Many schools do not refund most tuition after the first couple weeks of the semester, which could leave many college families vulnerable. Be sure to check your school’s refund policy, which you should be able to find on their website, and consider whether you need more protection than it affords.

Travel

Whether it’s traveling to campus from home, traveling to study abroad, or bringing a car to campus, insurance can help protect students from costs that may arise if things don’t go according to plan, like a health issue abroad, a canceled flight or fender bender while at school. Depending on your situation, you may want to consider insurance protection.

Car insurance is required if you bring a car to school. Look for a plan that gives you adequate coverage, though you may have to spend more to get more coverage, it will minimize your exposure. Speak with an agent about what coverages are right for your vehicle. Don’t forget to ask if you qualify for a “good student” discount – you could save 5-15%!

Depending on how far away from home your school is or where you travel to during the school year, travel insurance could be beneficial to you and your family. Travel insurance has different levels of features that you can customize for your trip. Most people think of travel insurance as just covering airline ticket reimbursements in case something goes wrong, but it can also protect you financially if you lose your luggage or need to be airlifted to better healthcare, depending on the plan you select.

Insurance can help college students and their families protect their investment in education. Some of these protections may be beneficial to your family, while some may not. It depends on your situation and risk tolerance. If you have questions regarding your insurance coverage for college, speak with an insurance agent for more information. Have a wonderful and safe semester!

Student Life Uncategorized

Are You a College Student? It’s Time to Control Your Finances

April 2, 2020

Getting an education is one of the best things you can do for your financial future. However, it’s just part of the success equation and it’s easy to make financial decisions that complicate things. It’s best to take control of your finances as early as possible and it’s never too early. The tips below can help any college student take charge of their finances.

Establish a Savings Account

Saving money is something that some college students don’t think about because there’s usually a limited amount of money available. Even if that’s the case, it’s best to set aside a small amount of money to serve as an emergency fund. Things happen and you don’t want to end up in a financial bind without a solution.

Avoid Debt When Possible

The biggest debt that most college students incur is student loans. That’s because college is expensive and sometimes it’s hard to pay for tuition and the cost of living without a loan. If there is ever a way to avoid getting a student loan or any other debt, you should definitely steer clear. Some people struggle for a lifetime to pay off student loan debt. If you decide to get a loan, make sure you do so wisely by consulting with a financial aid advisor.

Monitor Your Spending

A simple financial rule that should always be followed is to spend less money than you make. It’s easier to spend more money than you actually earn by using credit cards. This is rarely a good idea and it’s usually something that people end up regretting for many years.

Limit Credit Card Use

Credit cards are surprisingly easy to get when you’re a college student, which can be unfortunate because you’re still learning about finances. Sometimes what happens is the credit cards are maxed out and not paid on time. As a result, a good number of college students end up having to repair their credit later. If you end up getting a credit card, make sure you get one with a low interest rate and pay off the balance monthly.

Stick with a Budget

Having a budget is far more important than you may realize. That’s because knowing how much money you have to spend and sticking with your commitment not to exceed your budget can help you achieve your financial goals. If you need to earn more money, consider a side gig like Uber if you have a vehicle. You’ll be considered a contractor and you can work whenever you want. Instead of receiving Form W2, Uber will use a 1099 generator and send you the information by email or regular mail.

Start Investing

If you’re working a full-time job and they provide a retirement account, make sure you take full advantage of that benefit. It’s easy to think you have plenty of time to invest in a retirement account, but that time will go by quickly. By starting at a young age, you’re more likely to achieve your retirement goals.

Maintain Insurance

Health and disability insurance are two types of insurance that most people should have. If you don’t know whether or not you have these insurance plans, check with your employer. If you don’t have them, it’s time to get them. Not having insurance is something that can have devastating consequences when it comes to your finances.

Being a college student doesn’t mean you don’t have to be diligent about your finances and the financial decisions you make now will impact your future. Since you will probably have a learning curve like most people, it’s best to read as much as possible about personal finances. You’ll be glad you did.

BIO:Brett Clawson has a degree in Business Management and has started a couple of small businesses. When he’s not focusing his time on those, he spends time with his wife and two sons. His oldest son has entered the wonderful realm of college, and he now enjoys sharing tips that he and his son have found essential for college life.

Student Life Uncategorized

Where to Store Your Stuff

March 27, 2020

As finals approach, each hour is precious for those college students who will be going home for the summer. Some of them could simply pack their suitcases and drive home, but others might have an apartment or a dorm room full of furnishings. Being able to retain their belongings without making it into yet another hassle can take time and planning, and it can cut into valuable study time. Here are a few suggestions that might help ease the mind and leave plenty of time for study.

Start Winnowing Possessions

When the last semester begins, it is time to start winnowing possessions into what should be kept and what should not. For those who have a dorm room with mostly clothes and personal belongings, it can be a simple matter to decide what they really want to keep. Others will find they have to start making choices about items of furniture that really matter, and they need to consider what can be easily replaced.

Consider the Next Semester

Living in a dorm room is relatively easy when it comes to limiting possessions, but those who want to continue living off-campus will need to consider the next semester. If they will be renting another apartment, furniture will likely be important. Even a partially furnished apartment has room for a few items any student might find necessary, so making decisions now about the next semester should figure into what to keep and what to give away or toss out.

Taking It Home

Parents are a good resource for college students, and many return home for the summer months. Their family is often ready to welcome them with open arms, but it might become an issue when moving back home. Being able to pack and load everything into a moving van will be the easy part, but is there enough storage in the basement or attic to accommodate everything is something that should be considered. Taking it home might sound great, but it is only good if there is enough storage room available.

Packing Up

Whether it will take only a few suitcases or a moving van, packing up is part of the process. For those who will be able to easily move, labels and lists are not necessary. Those storing their possessions at home or in a facility over the summer will need to make sure they pack their items in good boxes and label them. Even furnishings should be wrapped during the move, and it should remain on them until they are secure in the new dorm room or apartment.

Using a Storage Facility

It might not be feasible to take everything home, but students who wish to keep their possessions could consider using a storage facility. It might also be less expensive to rent a unit for a few months than packing everything up and bringing it home. There are plenty of good options available, and small units can be very affordable. Making sure to use all the available space in a small unit can keep the cost low, and it will avoid the need for renting a vehicle to move a long distance. For those who were considering the time it takes to load and unload, it could be just as easily done while moving into a storage unit than moving it all home.

Shop Around

The cost of storage can vary even within a small geographical area, so it is important to shop around for the best deal. Some facilities offer discounts for students, and others have rental specials at certain times of the year. Most of the information can be found online, and even taking the time to call and ask about multiple rentals for several students might garner a discount or two.

Student Deals

The need for summer storage has long been an issue, and there are a few colleges offering students help in this area. Contact the Student Union on campus for possible assistance, and ask them if they have a discount deal with any local storage facilities. For those seeking more options, there are some storage facilities that cater to students such as SMARTBOX.

Whether you decide to pack everything up and take it home or leave it in a storage unit, remember that GradGuard offers worldwide personal property coverage as an automatic added endorsement with their renters policies! Be sure to have your items protected whether they are traveling home for the summer or locked up in a storage box.

Transition Uncategorized

Three College Surprises to Avoid

July 11, 2019

Given the amount of work I have done with colleges and universities over the past twenty years, I am often asked by parents for advice. Most recently, parents I speak with are particularly concerned about the cost of college and campus safety. Here are a few of the most common questions that I receive and my response to them:

  1. Do You Have a FERPA Consent? FERPA (The Family Educational Rights and Privacy Act of 1974) was designed to protect the privacy of educational records and to establish the rights of students to inspect and review their educational records. Even if you support your student financially, the college or university will not have any obligation to share student information with you unless you have the consent of your student. College Parents of America recommends that all families discuss this topic and have a plan for dealing with student information.
  2. Does Your School Provide 100% Refunds? If your student is forced to withdraw from school due to an unexpected illness or injury, there’s a high possibility that your university will not provide a refund of the tuition that you paid that semester. In this case, you could lose thousands of dollars in non-refundable tuition and fees. GradGuard Tuition Insurance can help refund those costs that your university is not reimbursing you. Note that different plans are offered in different states and vary for price and coverage, but purchasing a plan is smart to consider nonetheless. Be sure you know your school’s refund policy and remember that tuition insurance must be purchased prior to the start of classes for your chosen term.
  3. Is Campus Crime a Bigger Deal Than Reported? Colleges and universities are required to disclose annual campus crime and safety statistics through the Clery Report. Note that your university probably doesn’t reimburse students for stolen or damaged property. Not to mention if your student causes damage to their residence hall; in that instance, you will likely get stuck with a bill for the damage at the end of the year. With all this in mind, you will want to consider GradGuard College Renters Insurance. Evaluate the benefits of a low-deducible insurance policy, with worldwide personal property coverage, and specifically designed for students all for an average of $15 a month; there should be no argument!

Bottom line; no one likes to be surprised.

It’s true that some families are able to replace stolen property or pay for an extra semester of college if their student is forced to withdraw for medical reasons, but why would you want to? Especially if this is your students first year at college, you will seriously want to consider both tuition and renters insurance from GradGuard.

The GradGuard team is focused on our mission to help protect the investment in higher education that college families make. Over the years we have developed some keen insights into the risks facing college students.

We have worked on many products to help colleges protect their students from risks that may disrupt their education. College is a great investment, but it’s worth remembering that only 19% of 4-year bachelor degree students graduate in 4 years. Name another large investment/purchase that has such an uncertain outcome. When it comes down to it, don’t be surprised if an unexpected event delays your student’s graduation and be prepared in case it does. GradGuard has your back and wants to help when we can. Visit our website today for more information.

Health Uncategorized

Top 3 Reasons College Tuition Insurance Is a Smart Decision

July 11, 2019

When college families and their students are discussing college, the topic of money always comes up in the conversation. For good reason too! Did you know that the combination of tuition, fees and room and board charges average between $20,000-$50,000 a year?

For many college families, the expense of a higher education is one of the largest investments they will make. Since there is so much money at stake, we suggest that college parents make a plan in case their student is forced to withdraw from school due to severe injury or illness. Of course, if you are one of the few families out there that can afford to lose your large investment, then tuition insurance may not be necessarily needed for you.

However, for most of the twenty million college students and their families, the financial loss of an entire college semester is a burden big enough to break the bank. As a result, college families are smart to consider the purchase of tuition insurance prior to the start of the school semester.

3 Reasons Tuition Insurance is a Smart Decision

  1. If you can’t afford to lose the tuition paid for a semester at school – Tuition insurance can provide up to 100% refund of your expenses in the instance that a student gets severely ill or injured; it can also help cover the costs needed to get back on your feet in the event of needing to withdrawal.
  2. If your school does not provide a 100% refund – Do you know what your school’s refund policy is? A majority of school refund policies do not extend beyond the fifth week of the semester, and many don’t refund the full cost after the start of classes. Be sure to check with your school to see what their policy is so you can see how much of your money is at risk.
  3. If you have additional academic expenses – Even if the school does provide you with a 100% refund for tuition, most schools do not refund academic fees or student housing. Many tuition insurance plans can provide coverage for academic fees and student housing in addition to tuition.

Student health incidents like illnesses, accidents, and injuries happen frequently, even to young and healthy college students. The good news is that college families can protect their investment by purchasing tuition insurance! Visit our website at www.gradguard.com/tuitioninsurance to see the plans available on your campus!

Student Life Uncategorized

New Search Tool Makes It Easy to Find College Student Insurance

July 10, 2019

Paying for college can be a challenge but thanks to a new innovative college search tool, GradGuard provides a convenient gateway to the relevant protection college students need.

The average published tuition and fees for full-time four-year undergraduates for 2018-19 is $36,890 for private non-profit universities, according to the College Board’s Trends in College Pricing. In total, more than 20 million students and their families invest an estimated $500 billion annually in tuition, academic fees, student housing, and related expenses.

In fact, for many college families, the expense of higher education is one of the largest investments they will make. “With so much money at stake, GradGuard’s new search tool makes it easy for families to find the insurance protection they need to protect their college student”, said Bob Soza, Chairman of College Parents of America.

The GradGuard search tool provides an easy way for families to find and purchase renters and tuition insurance programs designed just for their college or university.

“When you consider the facts,” co-founder of GradGuard, John Fees states, “It’s smart for college families to consider how to protect their student and the investment they are making in higher education.”

The Need for College Renters Insurance
College students need to consider protecting themselves with renters insurance. According to reports from the 2017 Clery Act, colleges and universities reported 18,458 burglaries and robberies. During the same year, campuses reported 1,830 fires within student housing.

While risks such as theft, burglary, and campus fires are an ongoing problem on many college campuses, the good news is that there is a renters insurance policy that is designed just for college students. GradGuard’s college renters insurance contains an exclusive student endorsement that features a low-deductible, replacement coverage and worldwide property coverage. For about $.50 cents a day, families can protect students against losses that could otherwise disrupt a semester, making renters insurance a must-have consideration for college families.

The Need for College Tuition Insurance: 
College families are also smart to consider protecting themselves with Tuition Insurance. A 2017 survey of university bursars and health administrators confirmed that 84% of institutions do not provide a 100% refund. Even if the school provides a 100% refund for tuition, most schools do not refund academic fees or student housing.

Tuition insurance can provide up to 100% refund for your expenses if a student gets sick, injured or has to leave school due to a covered reason. Tuition insurance can help cover those costs without the added stress of a financial loss. Many tuition insurance plans provide coverage for not only tuition but also for expenses related to academic fees and student housing.

Research from the American College Health Association demonstrates that many student health issues including illnesses, accidents, and injuries are so serious that they can force a student to withdraw from classes.

“College families are often unaware that the investment they make in a college education can be at risk,” Fees continued. “From theft to student health, college students can be vulnerable to real financial losses that can disrupt their education. GradGuard’s search tool and unique insurance programs, however, make it convenient for college students and their families to protect their investment in higher education.”

Student Life Uncategorized

Five Reasons Tuition Insurance is a Smart Decision

July 1, 2019

For many college families, the expense of higher education is one of the largest investments they will make. In fact, according to College Data – the average published in-state tuition, fees, and room and board charges for the 2019-2020 school year was $26,590; with tuition exceeding $50,000 at private institutions.

With so much money at stake, it’s smart for college families to have a back-up plan in case your student needs to withdraw from the university due to a certain illness or injury. Supporting a college student through an unexpected event like this can be stressful and can absolutely be made worse if parents don’t know the university’s refund policy. In most cases, universities don’t offer refunds of tuition costs outside of the first few weeks of classes; that’s why college families should consider tuition insurance.

The Top 5 Reasons Tuition Insurance is a Smart Decision

  1. If you can’t afford to lose the investment you are making each semester: Tuition Insurance can provide up to a 100% refund of your expenses if your student needs to completely withdraw from the university due to a covered reason. Tuition insurance could cover those costs and help you get back on your feet in the event of a withdrawal, without the added stress of a financial loss.
  2. If your school does not provide a 100% refund: Do you know what your school’s refund policy is? As mentioned above, most schools don’t offer refunds after the fifth week of the semester. In fact, in a 2020 survey done by HigherEdStudy of college and university bursars and heath administrators, only 6% of schools reported providing 100% refunds. According to the survey, most schools only refund a portion of tuition for qualified withdrawals through the fifth week of classes and virtually no school provides a refund for academic fees.
  3. Not every student graduates: There are many factors that may disrupt a student’s education. Tuition insurance is not drop-out insurance, but it can help you to avoid the financial loss if your student needs to withdraw from school due to a covered illness or injury.
  4. If you have additional academic expenses: On the off-chance that the school does provide a 100% refund for tuition, most do not refund academic fees or student housing. Many tuition insurance plans can provide coverage for not only tuition but also for expenses related to academic fees and housing.
  5. Student health and well-being can force a student to withdraw from classes: The American Health Association National College Health Assessment reports that student health incidents such as illness, accidents, and injuries happen frequently, even to your healthy college students. It is important to note that ordinary student health problems such as mono, chronic health conditions, or injuries may also force your student to withdraw from classes and cost them thousands of dollars.

The Investment in College and your Student Deserve Protection

Remember tuition insurance must be purchased prior to the start of school and, like all insurance plans, be sure to check the specific terms, conditions, and exclusions of your policy.

This article was updated in July 2020.

Student Life Uncategorized

Do College Students Need Renters Insurance or Does a Homeowner’s Policy Provide the Right Coverage?

July 1, 2019

In 2019, the average college family spent an average of $976.78 per student on back to college shopping. You need a lot of things for college, but are those belongings safe in your residence hall or off-campus apartment? As you pack up your things for school, you may want to consider ways to protect your stuff. Insurance is one way to protect these items by offering financial protection in the case of a loss. However, it can be confusing to know what kind of insurance you need to protect your belongings (and liability!) and how much that can cost.

The first step is to determine whether your parents have homeowners insurance, then ask them about the terms of that insurance. Will it extend to cover you while at school? Is it enough coverage? If the answer is no to either of these questions, you may want to consider Renters Insurance. But how do you know what to get?

Luckily, I had the opportunity to sit down with GradGuard founder and insurance expert Bill Suneson to get the scoop, which is summarized for you below.

When a student moves into a residence hall, typically the terms of the housing agreement make it clear that the school is not responsible for stolen or damaged personal property. Also, the student becomes personally liable for any damage caused to the dorm room or residence hall. The same applies to most rental agreements if you move into an apartment off-campus. Without the proper insurance, you (and your family) can incur a significant financial loss if you cause unintended damage to your residence or suffer a loss to your personal property. For example, if you burn the wall making a late night snack, or someone steals your bike, without insurance the burden is on you to replace those items and pay for the damage.

GradGuard College Renters insurance is an easy and affordable way to protect your personal property against theft, water damage, fire, etc.  It is not uncommon for a laptop computer or bicycle to be stolen from a dorm (you can probably name a friend this has happened to) and most low-deductible renters insurance plans would provide a quick replacement.

Also, a renters insurance plan protects students if you are personally liable for causing damage to your residence – colleges or building owners would promptly bill you for your portion of the loss. It’s not something you would necessarily think about when you’re excited to move in and start the semester, but just remember about how easy it could be to inadvertently trigger the sprinkler system if you caused a small fire cooking in your kitchen.  That’s a lot of money and damage that you’d be responsible for. Without the proper coverage, you may find yourself with a hefty bill.

GradGuard is just one way to protect yourself. You may already have some coverage thanks to your parents. Yes, most homeowner’s insurance policies do extend coverage to students when they are away at college. However, your parents should review their policy closely before you leave for college as some policies may have certain limitations.  For instance, policies may limit coverage to students attending college full-time or living on-campus (even more restrictions if the student is living off-campus.)

But there are some things to consider about a homeowner’s insurance policy that you should discuss with your parents. Most homeowner’s policies have high deductibles and families are unlikely to file claims such as a $500 bike theft because the payment would not exceed their deductible.  Also, home insurance rates are increasing and filing small property or liability claims generally result in higher rates for your family over time.

With deductibles as low as $100 and most premiums about $.50 a day, GradGuard College Renters Insurance is both valuable and affordable for students even though some coverage may exist through their parents’ homeowner’s policy.  Spend a couple minutes reviewing this information with your parents to figure out what will work best for you and your family. You may find you feel comfortable with the cost of replacing your personal items and decide against coverage altogether, but you may find you want some protection. As always, speak with an agent to find the best policy for you. Happy packing!

This article was updated in July 2020