Published: September 23, 2007 01:46 am      

Protection from unexpected

Renters insurance coverage can be critical

FAIRMONT — During Kat Stevens’ 14 years working at Fairmont State University, she has seen one or two cases in which fires damaged off-campus residences rented by students.

In those unfortunate circumstances, the university tried to help out by collecting money, clothing and appliances for the students.

Stevens, a student services counselor, said most students don’t think about renters insurance or the possibility of unforeseen accidents affecting their college homes.

“I think they’re totally unprepared for something like a fire or even a flood,” she said. “A lot of times I think money is short and they don’t have it on hand to even think about insurance.”

Lynette Maselli, communications specialist for the West Virginia Offices of the Insurance Commissioner, said students away from home might not have as much protection from the unexpected as they think.

“In many cases, the student’s personal property would not be covered under their parent’s insurance if they live off campus,” she said. “We are urging the parents to check their policy or to see if renters insurance is right for their son or daughter.”

Renters insurance protects personal property that is stolen, damaged or destroyed during an unforeseen circumstance. It provides coverage for computers, televisions, stereos, furniture and other items that are harmed.

“Anything that your child would (have) inside the dwelling would be covered under a renters insurance policy,” Maselli said.

The two basis types of coverage for renters are personal property insurance and liability insurance. Liability coverage insures the renter if someone is injured while on his or her property.

People are always exposed to the world and the threat of theft and liability exists, said Bryan Cheslock, owner and agent of Cheslock Insurance in Fairmont. For these reasons, anyone who’s renting property should consider purchasing renters insurance.

“I think that it’s probably a seriously overlooked coverage,” Cheslock said. “A lot of people assume the landlords cover that type of thing, and they don’t.”

Randy Parks, an agent for Allstate Insurance in Fairmont, agreed that any person who rents would be a good candidate for renters insurance. College students may have some coverage if their parents are still financially responsible for them under their homeowners policy. But sometimes this coverage is insufficient for the amount of belongings the students has.

If a person suddenly had to replace everything they owned because of an unexpected situation, the cost would add up to a substantial amount, Parks said.

Renters insurance, which is similar to a homeowners policy, is generally an inexpensive product. Parks said an average price for renters insurance today is around $150 or $200 a year.

Renters insurance covers theft and damages from fire, lightning, storms, and other perils. In addition to covering the contents of a person’s apartment, renters insurance provides liability protection, too. Persons also receive coverage for loss of use if they temporarily have to live somewhere else.

People can add customized options for jewelry, guns or other items, Parks said.

A landlord’s insurance protects the physical building, and he or she is not responsible for the contents inside — such as a renter’s personal property. People are often under the misconception that because they are renting, their landlord will take care of the costs if something happens. Also, Parks said persons sometimes take for granted the amount of stuff that they actually own.

“Those myths are out there that give people false security,” he said. “We always try to mention the renters policy (to clients) and the inexpensive nature of it.”

Jack Oliver II, who opened the Insurance Depot LLC in Fairmont a year ago, said landlords have special insurance policies designed to insure the structures they own. Most people assume that they are under their landlord’s insurance policy, but probably no landlord would cover a tenant’s personal losses during a fire or other circumstance, he said.

“(People) need to make sure they’re renting from a reputable landlord and things are up to code — that would cut down any losses,” Oliver said.

He said different insurance companies offer various types of renters insurance, and the coverage depends on the specific policy. If persons are looking for a policy to cover their belongings, they should shop around to get the best price and coverage.

While some renters insurance polices cover the actual cash value of the property, other policies cover the replacement value, Oliver said. The actual cash value involves what the item is worth after subtracting depreciation. The replacement value means the policyholder would be supplied with a replacement item no matter what the cost.

If a student is dependent under a parent’s insurance policy, a lump sum value will basically be assigned to clothing and other valuables because it’s difficult to determine a price, Oliver said.

“You have to have the blanket coverage to cover all your belongings,” he said.

For more information, people can call the Consumer Services Division of the Offices of the Insurance Commissioner at 1-888-TRY-WVIC.

E-mail Jessica Legge at jlegge@timeswv.com.