Student Insurance

	Compare home insurance quotes from over 50 providers

Student insurance is a must have for any anyone at university. As a student on a tight budget having no insurance for your laptop, iPod, mobile phone and stereo system is a false economy. Student insurance protects your personal possessions when they are vulnerable and when you may need them most. 

• Why student insurance is important
• Will you be covered on your parents policy?
• What is student insurance?
• How much does student insurance cost?
• What policy details should students check?
• How can students keep their belongings secure?
• What is student travel insurance?

Why student insurance is important

Students heading to university will be laden with all the essentials for their new life of study and socialising. But they are leaving behind the comfort of their parents home and also the security it provides. This includes insurance cover for treasured personal items like computers, mobile phones, stereos and iPods to name a few which are often together worth thousands of pounds. 

Yet as many as one in three will fall victim to crime while at university according to the National Union of Students as thieves often target students as easy prey. Thieves often make a beeline for student accommodation because of the mass of people passing through and because it is empty at certain times of day and during holidays. 

But if you are heading to university you can ward off the potentially devastating effects of having valuable items stolen by making sure getting insurance cover is on your to-do list. 

After all it is often a considerable financial struggle to make ends meet at university and one of the last things you need is to have to pay to replace stolen possessions.

Back to top

Will you be covered on your parents policy?

Some insurers will be willing to add students to their parents household policy but items are often only covered if kept in a locked room. For example Hiscox, Norwich Union, More Than and Churchill provide this cover - some at no extra cost. 

This generally provides cover of up to £5000 worth of possessions or up to 15% of the sum insured on the parents policy. But the limit on a parents policy may not cover all the possessions so it may be necessary to insure valuable items separately - such as bicycles and musical instruments.

Back to top

What is student insurance?

It is often worth buying a specialist contents policy for the sum your possessions are worth - which is usually around £4000 for students according to insurer Endsleigh. 

There are many companies and banks specialising in providing student possessions insurance with policy details which are understanding towards a university way of life.

Also as students are only likely to be covering a small sum the cost should not be crippling. But it pays to do your research and check the policy terms carefully to make sure you choose the best policy for your needs.

Back to top

How much does student insurance cost?

To cover around £3000 worth of possessions you can expect to pay between just £20 and £50 a year. But remember the cheapest policy is not necessarily the best. 

How much you pay will depend on a variety of factors including where you are living what type of accommodation you are in and the sum you want to insure. Halls of residence tend to be cheaper than digs and big cities tend to be more expensive than smaller towns for example. 

In the end of course the question of whether or not to shell out for a contents policy depends on how valuable your possessions are - and if having them stolen would cause problems. 

Do the research online or on the phone to gather a few quotes and details of what each policy will and won't cover. Many insurers offer discounts if you purchase a policy online. 

Back to top

What policy details should students check?

Find out if there is any excess which is the amount of any claim you will have to pay yourself. A high excess may reduce your premium but may leave you having to replace your own belongings. For example it may not be worth a student choosing a policy with a £500 excess. Most items they want covered such laptops, stereos, mobiles and televisions often don't cost as much as that. 

Also check the single item limit. This is the maximum value a single item can be worth and anything more than this amount will not be covered unless you declare it separately. Items are also often not covered it they are not in your room or usual address. This means you may need to pay extra to cover a laptop for example if you take it around campus with you. 

It is vital to check the small print in the policies when it comes to security. Some policies dont cover students if they suffer a walk-in theft with no evidence of forced or violent entry. Yet this is a likely occurrence in halls or shared houses.

 Also check what is written about the location of contents during the holidays. Some policies will not pay out if items are not stored under lock and key during holiday periods. 

There may be some added extras. Some student policies pay a lump sum if a parent that provides financial support dies or if you have to give up your course because of illness. But you are not obliged to take these extras up.

How can students keep their belongings secure?

Students should take care and follow some basic steps to stay safe and keep their valuables secure. 

Simple things such as ensuring there are sturdy locks on windows and doors will help so students can enjoy university and their new-found freedom and not let crime get in the way. 

In addition leaving non-essentials at home and marking valuables with their postcode using an ultraviolet pen will reduce the impact of theft. This means the police can reunite stolen items with their owners if they retrieve them.

Back to top

What is student travel insurance?

Student travel insurance policies are tailored to those on a tight budget. They may be backpacking around the world for a year or simply sunning themselves on a beach during university holidays in budget accommodation. 

Insurance should be a holiday essential even for a cash-strapped student on a shoe-string budget. No one likes to think things will go wrong but unfortunately they often do. But having cover in place should put your mind at rest.

There are some low-cost student travel insurance policies on offer so survey the market and find the one to suit your needs. 

They may even offer cover for hair-raising activities like bungee-jumping or white water rafting as well as the usual lost luggage or medical bills if you fall ill or are injured while abroad.

Back to top

2009-03-09 16:32:56 © Moneyextra.com