For students who no longer have insurance coverage under their parents, it is up to them to insure their possessions in case they are stolen, lost or damaged.

If someone stole one of your prized possessions, or your apartment went up in flames, would you be able to do anything about it?

Sure, you could call the police or try and salvage the remains of the fire, but do you have any guarantees as far as getting your laptop back, or getting reimbursement for anything lost? Without coverage under an insurance plan, probably not.

For students who no longer have insurance coverage under their parents, it is up to them to insure their possessions in case they are stolen, lost or damaged. Without coverage, students can find themselves in a financial (and sometimes emotional) hole if an unfortunate circumstance happens that costs them some, or all, or their personal property.

Renter’s insurance covers one’s personal possessions if stolen or damaged by fire, smoke, explosions, vandalism, building collapse, water and falling objects. These things may seem unlikely to occur, but they do, and there is often no way to prevent them from happening.

“Of course we recommend renter’s insurance (to students), but many times they don’t need it,” says agent Peter Gramoll of the Peter Gramoll Agency in Shorewood.

“If the student is considered a resident or dependent of their parents, that home insurance coverage extends to the student away at school,” says Gramoll.

The student would receive 10 percent coverage or $2,500, whichever amount is more.

While the cost of renter’s insurance can vary depending on the amount of coverage one wants, the size of one’s apartment or house, and the area in which one lives. The Wisconsin Office of the Commissioner of Insurance reports the average cost ranges from $62 to $244 per year.

“The average annual cost in Milwaukee is about $150,” says Gramoll.

Gramoll says that some common claims filed by the college population are stolen or lost laptops, fire and vandalism.

Like Gramoll, American Family Insurance Agent Dennis Wurch says that typically, college students do not need renter’s insurance because many are still covered under their parents’ homeowner policies. But this only applies to students who have parents with a homeowner’s or renter’s policy and are still legally listed under their residence or claimed as a dependent.

Many students at the University of Wisconsin-Milwaukee are financially independent or over 24 years old, which means they are no longer qualified for their parent’s insurance.

Wurch says students living in the Milwaukee area can expect to pay around $100 per year for a rental insurance policy. Like Gramoll, Wurch also cites laptops as a top claim from clients who are college students.

To get a renter’s insurance quote from an agent, one typically needs to provide date of birth, social security number, address and details about residence, including how old it is and what kind of heating it has.

To find an insurance agent, the Office of the Commissioner of Insurance (OCI) recommends asking friends or family for an agent or company to contact. Companies and agents can differ significantly in terms of cost, so shop around a little before settling on one. Often one can get a discount for holding both auto and renter’s insurance policies with the same company.

So what does one need to do to ensure their possessions are covered, and that they would get back what they are worth if a claim needed to be filed?

First, assess the value of your belongings by calculating how much items you want insured are worth. The estimated value of all these possessions is called the “actual cash value.” Remember to factor is wear and tear on certain items such as electronics. Even if you paid $200 for your television five years ago, it is not worth that full amount anymore. Decide how much someone would be willing to pay for an item to estimate its worth. Items like art and jewelry, if kept in good condition, should not lose their value. In fact, their value may go up over time.

It is important to keep a list of accessed values of personal property somewhere off your living premises, in case that list is destroyed or lost. Make several copies and keep them in several different locations.

Recording the serial numbers off your possessions is a good idea, so is taking photos of your most valued possessions to ensure the best coverage in case you need to file a claim.

The OCI emphasizes the need to check your policy’s theft coverage, as this is one of the most common types of rental insurance claims, especially among college students, who usually live in apartments. Report any instances of theft to the police department as soon as possible.

All students should know what kind of insurance, if any, they have on their personal possessions. It may be better to be safe now instead of being sorry later by considering renter’s insurance.

“Get it before you have to make a claim,” says Wurch.

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