Financial 4.0 logo
EventsMarketplaceAsk An Educator
Sign In
LIFESTYLE & TRAVELBUDGETING

The Benefits of Renters or Dorm Insurance

Written by: Guest Writer

2 min read | Published: February 7, 2021

Image for The Benefits of Renters or Dorm Insurance

Spending money on insurance is not what most people would consider fun, but it can give you much-needed peace of mind. As you accumulate belongings with any significant value, it becomes worthwhile to consider purchasing renters insurance or dorm insurance. Considering how inexpensive they generally are, it’s most likely a no-brainer.

What is insurance?

Insurance is essentially financial protection that you purchase up front. Think of it like a bodyguard for your financial well-being. We buy insurance for our health, our vehicles, our homes, and even our pets. If something unexpected happens that costs money to fix or replace, your insurance can swoop in and cover some or most of the expenses. Although most of us purchase insurance with the hope we’ll never have to use it, the benefits can be huge, should such a situation arise.

What is renters insurance?

Renter’s insurance is typically purchased by people who rent an apartment, condo, townhome, or other type of living space. Most renters policies have three main components: liability, belongings, and loss-of-use.

Liability coverage involves costs related to personal injury that might occur within the rental unit that are the result of something other than the building structure. Coverage for belongings generally pays to replace items that are stolen or damaged due to fire, flooding, etc.

Loss-of-use coverage, also referred to as additional living expense (ALE), generally helps to pay a portion of your living expenses if you’re forced to vacate your residence for reasons out of your control, such as structural damage.

What is dorm insurance?

If you live in on-campus housing, you may have a couple options. Sometimes, your parent or guardian’s homeowner’s or renter’s insurance policy can be extended to include your belongings in a residence hall on campus for free or for a small additional cost. If not, you might consider purchasing dorm insurance, sometimes called college renter’s insurance. This type of insurance generally covers only your belongings, so you’d have to inquire about options for adding liability or loss-of-use coverage.

How much do these cost?

The costs will typically vary, depending on what dollar amounts you choose for your maximum coverage. You may also have options for a deductible, which is the out-of-pocket cost you are still responsible for if you file a claim.

According to Nerdwallet, the average monthly cost for renters insurance in Michigan is $11. PolicyGenius states that dorm insurance generally costs about $20 per month or less. Some policies will cost even less, especially if you can bundle the policy with your auto insurance. Because renter’s insurance policies may offer some coverage for your vehicle when it’s parked at your rental property, purchasing renters insurance can reduce the cost of your auto insurance.

Sources:

https://www.investopedia.com/terms/r/renters-insurance.asp 

https://www.policygenius.com/renters-insurance/renters-insurance-for-college-students/ 

https://www.nerdwallet.com/article/insurance/how-much-is-renters-insurance

Was this helpful?

Browse Related

Image for How to Avoid Health Insurance Scams

How to Avoid Health Insurance Scams

BLOG | FRAUD

1 min read | January 27, 2019

There has been an increase in health insurance scams throughout the nation that has left many with their money and identity stolen. Thankfully, there are many ways to identify when you are getting scammed and how to stop it from happening.   

Learn More

Image for Car Insurance 101

Car Insurance 101

BLOG | LIFESTYLE & TRAVEL

2 min read | March 3, 2018

Most drivers are paying for car insurance, despite the fact that they rarely need to file a claim. The one time you do need it, though, all of those payments will likely pay off. Some states, including Michigan, require all drivers to have car insurance.

Learn More

Image for Before You Sign Your Rental Agreement

Before You Sign Your Rental Agreement

BLOG | INTERNATIONAL STUDENTS

2 min read | October 3, 2023

Renting your first place in the U.S. can feel intimidating, especially as an international student. The steps to becoming a renter in the U.S. might differ greatly from back home. Read on to learn more and discover our top tips for those aspiring to rent! 

Learn More

Browse by Category

Image for Budgeting

Budgeting

Image for Career

Career

Image for College

College

Image for Credit

Credit

Image for Fraud

Fraud

Image for Investing

Investing

Image for Lifestyle & Travel

Lifestyle & Travel

Image for Student Athletes

Student Athletes

Image for International Students

International Students


Oakland University Credit Union
www.OUCreditUnion.org

Oakland University Credit Union, OUCU, is a licensed trade name of Michigan State University Federal Credit Union. MSUFCU remains the legal entity behind both brands, MSUFCU and OUCU. Federally insured by NCUA. Equal Housing Lender.

If you are using a screen-reader or other auxiliary aid and are having problems using this website, please call 800-766-6828 for assistance. All products and services available on this website are available at MSUFCU full-service locations.

LEARNBLOGSPODCASTSQUIZZESCALCULATORSVIDEOSEVENTSMARKETPLACEASK AN EDUCATORFAQABOUTCONTACT US
Download on the App StoreGet it on Google Play

Copyright © 2024 Reseda Group LLC, used under license.

Terms of Use
Privacy Policy
Disclaimer