Home insurance Advice for Students

Home insurance advice for students

With the autumn approaching its time for students to prepare for a return to university by getting their financial services in gear such as establishing a student bank account or arranging a student loan. However, there is one financial product that is often overlooked but could actually be a bigger money saver than any other – home insurance.

Why is home insurance so important for students?

According to research by Saga, one in three students fall victim to crime at university each year with a quarter of all burglaries occurring through an open door or insecure window within a few weeks of a new term.

If you think it’s no big deal for a student to be burgled given that most of them have little money and therefore not too many possessions, then think again. Take a look at the typical value of the contents a student possesses such as their clothes; the value of their CD collection or digital downloads; iPods; DVD players; games consoles; books; MP3 players; laptops; and more.

With the right home insurance in place, a student could have the peace of mind that if a burglary occurs, their possessions can be replaced.

Where can students get home insurance?

Generally speaking, students have two choices when it comes to taking out home insurance – they can either be covered under their parents’ policy or take out separate cover for themselves.

Let’s look at these options:

Parents’ policies - Student cover is available as an add-on with a handful of home insurance policies. Usually this will provide cover up to a predetermined value for contents kept at the student’s accommodation and while being transferred between properties. You may be able to extend this with personal possessions cover that covers the loss or damage of any personal belongings taken anywhere in the UK. The key point with these policies is to ensure the cover available is sufficient for your needs.

Tenants’ policies - Another option for students staying in rented accommodation is to take out a tenant’s home insurance policy. This differs from regular home insurance as it doesn’t protect the building itself - that should be covered by the landlord – or any of the contents that were already present in the property. Instead it simply covers tenants’ possessions up to a certain value against risks such as flooding, storm damage and theft.

Is there anything else to look out for when choosing a home insurance policy?

If you’re a student, you should examine the terms and conditions of a home insurance policy carefully and look out for exclusions and the limits placed on specified items. Here are a few points that are particularly important:

- Bicycles: According to Marks & Spencer Money, a quarter of student cyclists have fallen victim to bike theft. Indeed there were around 540,000 bikes stolen during 2008/09 but not every home insurance policy will cover bikes automatically. You may need separate bike insurance or look for a pedal cycle cover add-on.

- Digital downloads: Some home insurers will now cover downloaded music and other digital content up to a pre-determined value.

- Discounts: See if your insurer is willing to offer a discount for security measures such as burglar alarms and outside lighting at the property.

How can students keep their possessions safe?

An important caveat on the majority of home insurance policies is that an insurer may not pay out if you are deemed to be negligent. This means that if you leave a door unlocked or a window open when you leave a house and a burglar enters the property you may not receive a payout.

So keeping your possessions safe is vital. To boost security, keep valuable items out of sight so they can’t be spotted from outside windows; and mark valuables with a UV marker pen so they can be retrieved if they are stolen. Ensure your property is properly locked whenever you leave the house and don’t leave any tell-tale signs that you’re not around - such as notices on the door telling your roommates that you have gone for the day. Use a timer switch for lights and radios to give the impression that someone is at home even when they’re not; and consider investing in security devices.

By implementing security features such as burglar alarms; five-lever mortise locks; time switch lights; outside lighting; and a safety chain at your property you may be able to save money too as most home insurance providers offer discounts for security measures.