Should I Take the Apartment’s Renters Insurance?

I got an email from a client’s father today about his sons’ renters insurance.  They are moving to a new Purdue University campus apartment this school year and the new complex offers renters insurance as part of the lease. 

The father wondered which policy was better.  Many apartment complexes and property management companies have partnerships with third party companies that can add “renters” coverage to the rental agreement and all the cost is bundled into the monthly rent payment.

This is common with campus apartments, and it sounds convenient, right?  WRONG! 

My advice is STOP! DON’T DO IT!

Let’s walk through this scenario from the point of view of Jenna Isch, your friendly insurance agent in Lafayette, IN!

Is it Really Renters Insurance?

Here is why I say STOP:  The policies offered from the apartment complex or property management company do not include actual renters insurance

It is only liability coverage, meaning the policy would pay the apartment if the students were responsible for causing damage to the apartment.  That means your kid’s stuff is not covered in the event of fire, theft, vandalism, etc.… 

The offer this client got was for $50,000 in liability coverage for $14 per month per roommate ($28/month total). 

What Does Real Renters Insurance Look Like?

We were able to write a policy with $15,000 in contents and $300,000 in liability to cover all the roommates for less than $14 a month.

The convenience of bundling “renters” with their rental agreement was not worth it, and thankfully the client asked, so we could continue to offer them more coverage at a better cost.

Contact Your Friendly Insurance Agent in Lafayette, IN

When your kids move into their apartment, don’t choose the renters coverage offered as part of the lease.  Get your own insurance.  You will not regret it. 

If you are in Indiana, get in touch with an insurance agent in Lafayette, IN. You can call or text my office at (765) 838-2781 and we can help get your student set up right. You can also book a consultation online. And we will make the process quick, easy and just as convenient.