Insurance probably isn’t top of mind for young adults heading off to college or renting their first apartment. But with freedom comes responsibility—and in this case, the responsibility is to make sure that they and their belongings are protected by getting the proper renters and auto coverages.
The good news is that many young adults may not need to take out additional policies and, for those who do, some policies cost mere cents a day. ERIE can help with policies that fit whatever life stage you’re currently in.
PROTECT YOUR PLACE
Dorm dwellers and apartment renters alike should definitely get schooled in insurance.
“When kids are away at school, they’re considered residents of their parents’ household and are covered to the full limit of the parents’ homeowners or renters policy until they’re 24,” says Jennifer Koebe, ERIE’s vice president and regional underwriting officer. This holds true as long as the young adult is a full-time student and maintains residency in their parents’ home—which they must have lived in directly prior to moving out—when not on campus or in an apartment during the school year.
Things are a little stickier with non-full-time students and renters who are 24 years of age or older. To protect this group’s personal property against damage from fire, smoke, theft, vandalism, lightning and other common disasters, they’ll need to take out a standard renters insurance policy, such as an ErieSecure Tenant® policy.
This policy offers personal property coverage, loss of use (coverage that kicks in to take care of living expenses associated with a temporary relocation), personal liability protection, and medical payments for damages or injury that occur in your rental unit or as a result of personal activities away from home. And, similar to how an ERIE homeowners policy works, the customer gets worldwide coverage that protects his or her possessions even if they are damaged, lost or stolen when away from home, whether the location in question is an exotic locale or a friend’s place across town.
The ErieSecure Tenant® protection (including liability protection), which starts at $100,000 in coverage and goes up to $1 million, typically costs less than $120 a year and far less when paired with an ERIE auto policy. It's recommended that renters consider a personal liability limit of at least $300,000 and that they opt for guaranteed replacement cost over actual cash value.
WHAT’S THE DIFFERENCE?
“In an actual cash value settlement, if something happened to that TV you’ve had for 15 years, you’d receive the money it was worth with the depreciation factored in,” Koebe says. “With a guaranteed replacement cost settlement, you’ll be able to buy a brand new TV. There’s a small difference in premiums between the two, but the value that replacement cost provides Customers dealing with an unfortunate situation is significant.”
TIPS TO KEEP YOUR STUFF SAFE
Even with an insurance policy in place, it still pays to practice some tips to protect your property and keep claims in check. Here are a few:
- Safeguard pricier items—or just leave them at home. According to the Campus Safety and Security Data Analysis Cutting Tool,* over 22,000 dorm burglaries occurred in the years 2013, 2014 and 2015 combined. Expensive bikes, jewelry, watches and laptops are some of the most frequent targets, so take care to lock them up or leave them at a trusted residence that doesn’t have a high level of foot traffic. Renters should also be aware that ERIE has a $3,000 coverage limit per item for the theft of things such as jewelry and watches. If a prized possession is worth more than that limit, make sure to talk to your agent about getting additional coverage for that item.
- Lock your doors all the time. It sounds obvious, but most dorm thefts occur during the day.
- Fireproof your home. Don’t leave candles, grills and cigarettes—the most common causes of fires—unattended. To be extra safe, consider flameless candles, indoor grills and kicking the habit.
- Engrave electronics. Engravings make it easier for police to identify stolen computers, televisions and tablet.
- Create a home inventory. By saving all receipts from major purchases, making a detailed list of everything of value in your home or apartment, and photographing or videotaping your possessions, submitting a claim will be easier. You’re also more likely to receive reimbursement for what’s stolen or damaged.
- Consider adding Identity Recovery coverage to your policy. College students are increasingly targets of identity fraud. The Federal Trade Commission reports college students (ages 20–29) represent the highest percentage of all identity theft complaints. College students have pristine credit records and they’re exposed to situations that can leave them vulnerable to identity theft. Fortunately, it’s affordable to add an ErieSecure® Advantage Bundle endorsement, which will help cover the cost of identity theft by reimbursing you up to $25,000 of fraudulent credit card fees. The Advantage Bundle also includes increased sublimit coverage for theft-related losses.
Like a favorite roommate, Miller's is there for you. Talk to an Miller's Insurance agent today to get the right coverage for you.
There’s no doubt about it—insurance can be as much of a head-scratcher as a trick question on a final exam.
While we can't make insurance any less complicated, we can help it make more sense. To understand how ERIE’s policies can safeguard you and give you peace of mind, check out these ERIE resources:
- ERIE’s website–You'll find lots of helpful information and insurance glossaries along with a free online auto quote tool, a life insurance calculator and plenty of FAQs in the Support Center.
- Miller's Insurance blog–Here, you have access to hundreds of stories to help you live better and safer. For example, you can search on a variety of topics and find everything from the latest trends in cars and tech to interactive quizzes and videos.
- Your Miller's agent–Your knowledgeable agent is there to help you, so don’t hesitate to throw any questions his or her way.
- Your policy–For the final word, consult your individual policy. And if you still have questions, talk to your agent.
- Another great resource for insurance info is the Insurance Information Institute’s website.
Read about protecting your wheels next.
*This analysis cutting tool was designed to provide rapid customized reports for public inquiries relating to campus crime and fire data. The data are drawn from the OPE campus Safety and Security Statistics website database to which crime statistics and fire statistics are submitted annually, via a web-based data collection, by all postsecondary institutions that receive Title IV funding (i.e., those that participate in federal student aid programs). This data collection is required by the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act and the Higher Education Opportunity Act.
Insurance products are subject to terms, conditions and exclusions not described in this article. For additional coverage questions, please refer to Erie's disclaimer and talk to a Miller's Insurance agent for policy details. Coverage is not available in all states.
This article brought to you by our friends at Erie Insurance. Miller's would like to extend it's gratitude to Erie Insurance for both being a wonderful business ally and for letting us use the articles found on their blog, Eriesense.