Parents who call in to get a mandatory renters insurance policy for their student often ask,
Why does my college student need renters insurance? There’s nothing to protect because he doesn’t have any property, or any assets.
It’s a recurring question, and the idea that your college student has nothing to protect is a common misconception. Let’s take a look at why…
Why Does My College Student Need Renters Insurance?
Many parents wonder why their college student needs renters insurance. You’d be shocked at the many reasons why!
Why Does My College Student Need Renters Insurance? So What If The Landlord Sues Him For Damages?
This question leaves out a key element of most college student apartment leases. Often, college students have no full time job and wouldn’t qualify on their own for an apartment lease. The common solution to this is to have a parent co-sign or guarantee the lease. In most cases, this means that the parent is just as obligated under the terms of the lease as the student. It also means that the parent is just as liable as the student if there’s bodily injury or property damage to another person.
If your college student starts a fire and it destroys a building, they (and their renters insurance) are liable. Everyone on the lease is likely to be held liable for an event like that. So, why should parents care? Because that means they are equally obligated. That half million dollar judgment will be against your student and against you when the commercial carrier tries to subrogate after they’ve paid out the claim to the property owner. Joint and several liability among leaseholders is fairly standard, meaning that everyone on the lease is responsible, even if they don’t live there.
Since you didn’t personally cause the fire or the loss, your homeowners policy may or may not be interested in defending or paying that claim. Since the money has to come from somewhere, a renters insurance policy is a natural way to firewall that liability away from your own assets. Since you’re listed on the lease, you should also be a named insured on the renters insurance policy. This provides the protection you and your student deserve, and it only costs about $150 a year.
Don’t forget that your college student has earning potential later in life. If insurance doesn’t cover the judgment from that incident, that judgment can follow your student around until he does have something to take. At that point, if the other people on the lease haven’t paid their share, he could be responsible for the entirety of the amount.
Why does your college student need renters insurance? To prevent their negligent actions from coming back and causing irreparable harm to you and your assets. To find out more about how to protect yourself and your college student with renters insurance, contact Effective Coverage today at (800)892-4308 or click above for free online renters insurance quotes.