Debt Worried Students Need to Get Clued up on Their Cover Sacramento Bee
30.08.11
Peter Harrison, insurance expert at moneysupermarket.com , said: "Students gearing up for the start of university may be more focussed on the fun of fresher's week than thinking about their insurance cover. But students are a prime target for theft and burglary and many will have a number of expensive electrical items which will need protecting, so foregoing insurance could prove a false economy.
"It's vital to take out adequate insurance to protect belongings such as iPods, laptops and mobile phones and one way of bringing down the cost for this cover is to add students onto their parent's home contents policy. Parents should be aware however, that any claims made will directly impact their own claims history and may lead to them losing any no claims discount and result in increased premiums in the future. It is also essential to make sure you read the small print as cover levels can vary between providers from those on the existing policy. Students may also find it worthwhile looking at providers such as Endsleigh who offer specific student insurance policies."
Source:
bHome Insurance/b ? bContents/b Cover | Social Marketing Tips
Put simply contents cover insures all of the items within your home, with some policies covering those items kept outside, or within out-buildings too.
Although there are many “smaller” options and added extras, there are two main types of policies that you can choose to cover your possessions.
Firstly there is “New-for-Old” cover, which, in the event of a pay out will ensure all of your possessions are replaced with new counterparts. Although the premiums for this kind of cover may seem a little steep, it’s important to take into consideration the high values of depreciation for certain items such as furniture and electrical equipment.
Secondly is “Indemnity” cover, which tends to be the cheaper option of the two, as if the insurer has to pay out, they will deduct the cost of everyday “wear-and-tear” from each item replaced.
The breadth of cover you require will vary greatly depending on your individual requirements. As well as all the obvious items, there are some that may or may not be included a standard.
Examples include; items that may be used outside of the home (e.g. laptops, bicycles, handbag or wallet contents).
The number and type of eventualities resulting in a payout will also vary considerably from policy to policy, typically though, cover against theft; fire, flooding, earthquake and vandalism are included.
Wilful damage and damage caused by DIY though, are common claims that are rejected.
The value of your possessions is likely to far exceed what you would expect, so as a rough guide; you should move from room to room, calculating how much it would cost to replace each item from new.
With this in mind you should then be able to see if the amount of home insurance you have is relative to the value of your possessions.
