Home insurance: Protect your possessions at university
Moving out of your parent's home to take up residence in student accommodation is a major and often overwhelming milestone.
In the flurry of finding digs, moving in, making new friends, getting settled into university life, not to mention finding the student union bar, it's easy to overlook the "boring" things like getting contents insurance.
But a combination of the fact students are more likely to be targeted by burglary and the fact they have less money to pay for any losses make owning a contents insurance policy even more important.
According to last year's Crime in England and Wales report, full time students were twice as likely to be burgled with 4.8 per cent being victims compared to 2.3 per cent of those in managerial or professional occupations.
Yet, research by price comparison website, uSwitch, shows people in the student age bracket of 18 to 24 were the worst offenders when it came to snubbing home insurance.
It found 39 per cent had failed to secure cover for their possessions despite the fact students owned more expensive consumer goods per head than the rest of the population - with university rooms bristling with iPods, laptops, cameras, TVs and stereos.
What is more, not only are students more likely to be burgled but burglaries also become rife during recessions.
Mark Monteiro, an insurance expert at uSwitch, explains: "Consumers are running the gauntlet by putting themselves increasingly at risk simply to make a short-term saving."
And while students are also at a higher risk with their state-of-the-art gadgets such as laptops and ipods their lifestyles also make them a more likely target for crime.
Student habits mean not only do they tend to have more parties and therefore more strangers in their homes, but they also tend to be more lackadaisical with security.
It means that contents insurance policy is a must.
The problem is most students have less money than the rest of the population to spend on a contents policy. Even £15 a month, which some of the cheaper policies could set a student back, could create a massive hole in their finances.
Turn to mum and dad
There are several options available, however. One method is to get covered using your parent's home contents insurance - making turning to mum and dad a key option for "money-savvy" students.
Peter Gerrard, head of insurance research at moneysupermarket, says: "Getting a degree can be an expensive affair. With essentials to pay for such as tuition fees, accommodation and pricey consumer goods like laptops, contents insurance could be another costly addition to student living.
"However, it could cost nothing at all if students take out cover under their parents' home insurance contents policies.
"It's easy to do and will save much needed cash at a time when budgeting is tight."
It's worth checking the terms and conditions of your mum or dad's policies as they may automatically include cover for contents which are removed, temporarily, from a parent's home and this will cover your possessions at your student digs.
This will usually cover only a percentage - 15 per cent for example - of the sum insured on the parent's contents, however, so you need to be sure this is adequate cover.
Would 15 per cent or £5,000 worth of cover be enough to cover a stolen lap-top, sound system and other high-tech gadgets?
And many of these policies will also include restrictions and exclusions too.
Nationwide, for example, offers contents insurance which includes cover for students' belongings. However, it states that all their possessions must be returned to their parent's home during the holidays.
Of course, not all students will be in a position to be able to rely on their parents. And many parents might not be keen to provide insurance for their offspring since any claim made by their child will automatically affect their future claims history, and this could bump up their premiums.
So there is a strong argument for taking out a policy in your own right. Moneysupermarket also said a standalone policy would provide a more tailored coverage that would cover specific items such as library books and other items rented from college or university.
If you plan to go it alone, firstly check your bank account. Many student account packages include contents insurance as part of the deal.
Barclays student package, for example, includes Barclays Student Possession insurance which comes with a standard contents policy covering students during term-time. It covers for accidental damage to PCs, TVs or sound systems and theft of personal belongings such as library books or anything else borrowed from colleges.
Possessions are also covered whilst in transit and the policy also covers for fraudulent use of credit cards.
NatWest also offers contents insurance as part of its package.
If your student account does not include these perks, you will need to find a separate policy. You could save money on this by shopping around to make sure you get the most competitive deal.
As these policies are tailor-made, many insurers will allow you to "pick and mix" your deal. So if you only want certain items covered it might be worth choosing one of these policies as that could also save you money.
And applying online might just help you save a bit of cash as internet providers often sell policies with a discount.
When looking for a policy there are a few things to look out for. You will most likely be living with flat or house mates, in which case many policies will not cover for a theft where there was no forced entry.
Elaine Parks, head of technical services for Legal & General insurance, says: "Just as a word of warning, students in shared accommodation should not assume that they will be covered if their laptop or iPod is stolen from their room.
"Most household insurance policies will only accept a claim if it is clear that force was used to gain entry to the room."
For this reason, she said, it was important that students made sure both external and internal doors had locks.
Insurers also advise you check the how long your cover lasts. If your policy only covers your possessions when they are in your student house, you will not be able to claim if they are stolen or damaged whilst in transit or in another location.
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