First-year students: Insurance is a must, but how?
Tuesday, 22 September 2009 03:19
Students typically take around £3,500 worth of computer, entertainment and sports equipment - and expensive course books - to university, and student digs are unsurprisingly regularly targeted by burglars.
So it's not good news when a survey from Sainsbury's finds one in three students have no insurance in place for their belongings - yet one in three students are victims of crime.
Sarah Routledge looks at the benefits of insurance for students.
Already covered?
Some halls of residence have already bulk-bought insurance for their students, so you may be entitled to basic cover. To find out, enter your details on Endsleigh's website: website.
Check the cover carefully, as it may not be enough for you. There is always the option to top up if this is the case.
Parents' insurance
This is probably the simplest and cheapest way to cover your belongings: simply add yourself to your parents' insurance.
Sainsbury's Home Contents Insurance provides up to £5,000 cover for students of the household who are living away from home, Churchill offers £4,000, while M&S Premier home insurance offers unlimited cover.
Ben Tyte, Sainsbury's home insurance manager, says: "With an estimated one in three students falling victim to some sort of crime each year, it's worrying that so many students go off to university without any insurance cover in place for their possessions.
"However, before splashing out on insurance, students should certainly check to see if their parents' household contents insurance policy might provide cover whilst they're studying away from the family home, and also to check that this cover will be adequate should they need to make a claim."
Check the terms and conditions to your parents' insurance to find out whether you are covered, and how much cover is available. You should also check the terms under which you are covered.
Your own insurance
Another option is taking out your own policy. This is going to be more expensive, but has its own advantages, according to Cover4students spokesperson Martin Nugent.
"Some people are covered on their parents' insurance, but it isn't always appropriate to a student lifestyle," he explains.
Most policies do not cover 'walk in' thefts, where a door or window is left unlocked and an opportunist strikes.
"Our policy doesn't have that restriction. Quite a lot of claims are for walk in thefts," Mr Nugent adds.
Typically in halls, "doors are left open and people wander around, helping themselves," Mr Nugent warns.
Another problem with your parents' policy is the high excess. "It can be as high as £50, while ours is only £10," he says.
Endsleigh spokesperson, Rhiannon Harris, says: "Only specialist possessions insurance provides particular cover such as a 24 hour advice helpline; holiday cover and options to protect mobiles, laptops, mugging and assault - even course fee protection in the event that parents or guardians are unable to pay tuition or accommodation fees due to redundancy or sickness."
Taking out an individual policy may also be preferable from the parents' point of view, as any claim is likely to bump up the overall premium.
Ms Harris adds: "Many parents will have a no claims bonus that applies to their home insurance. With some policies this can be as much as 40 per cent.
"They stand to lose this bonus if their son or daughter claims on their policy. Furthermore, student claims on a parental policy can cause renewal premiums to be loaded or even cover to be refused if multiple claims are made."
A good policy will replace 'new for old' so you don't lose out when getting your possessions replaced, an excess that you can afford - are you likely to claim if you have to pay £50? - and accidental damage.
Also check the maximum payout for a single item, as an expensive musical instrument, for example, may need extra cover.
Insurance from Endsleigh starts from £16 a year for a student going into a hall of residence, while cover4students starts from £15.
Extras
Unfortunately, many of the things you might expect to be covered, won't be. Laptops, bicycles and mobile phones - which tend to be taken out of the home and are therefore more vulnerable to theft - are often excluded.
But these can usually be added on for an extra charge. Other useful extras are a refund of course fees and rent if you have to leave your course.
Safety
Ideally you wouldn't be burgled at all. Sometimes it's impossible to avoid, but there are some things you can do to help yourself.
- Many burglaries happen when a door of window has been left open. Lock up whenever you go out.
- In a hall of residence, be careful who you let in or who follows you into the building. Lock your bedroom door even if you are only going down the corridor.
- Be vigilant when using your mobile phone. If your phone is stolen call your network or 08701 123 123 to immobilise it.
- Security mark your property with the initials of your university and your student ID number. This makes it harder for a burglar to sell stolen goods and helps the police to return stolen items to you if recovered.
- Keep lists of the make, model and serial numbers of your electronic items to help police track them down if they are stolen.
- Don't advertise your wealth. If you have a brand new laptop, don't leave the packaging outside the bins for everyone to see.
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