Students risk big bill when forgetting insurance

Technological appliances account for over half (54per cent) of the total value, which is no surprise when 92per cent of students own a laptop and smart phone. But there is still room on the shelf for books; the average student book collection is worth £181.

The value of student possessions might be rising, but one in three does not have insurance cover. In other words, they would have to pay to replace or repair any items if they were damaged or stolen.

Tom Thomson of Sainsbury’s Home Insurance says: “Having a wide range of technological appliances is the norm for students nowadays, but this pushes up the average value of a student’s belongings enormously. Going without home contents insurance could be a false economy and could end up costing a lot more in the long run.”

Insurance cover is particularly important for students as statistics suggest they are vulnerable to crime. It is estimated that a third of students become victims of crime, mainly theft and burglary, and about 20per cent of student robberies occur in the first six weeks of the academic year.

Ben Wilson, home insurance spokesperson at Gocompare.com, says: “Students often take a lot of desirable electronic items, musical instruments and bicycles with them to university and this, coupled with the fact that student accommodation, which is usually shared with multiple other people, can be less secure than other properties, can make them an attractive target for burglars.”

Some insurers automatically include cover for student home contents on their standard home insurance. In other words, a parent could insurance their child’s possessions at no extra cost. But it’s important to clarify the terms and conditions of cover. For example, the insurance might only apply during term time. Some insurers also limit the amount of cover or insure only one child at a time. So, if your sibling is already at university, you might not be insured. Then there are restrictions on claims, such as evidence of forced entry if your possessions are stolen.

Mum and Dad should also bear in mind that if the student makes a claim on the policy it will affect the parents’ no claims bonus, pushing up the price of cover in the future.

Students who are living in a hall of residence should check if the university offers insurance for personal possessions. Again, though, it’s important to be clear about any policy limits and exclusions.

Landlords are not responsible for contents insurance so students in private rented accommodation often take out their own cover. A number of companies offer specialist insurance for students, which is usually restricted to term time. There might be other conditions, too. For example, many policies impose limits in the value of individual items as well as an overall policy limit. So, your policy limit might be £5000 but there might be an individual item limit of £2000. If your £3000 laptop were stolen, you would therefore only be able to claim £2000. Also, some policies don’t cover bikes and instruments as standard.

Remember, too, that you will each need your own contents cover if you live in shared accommodation. You might also have to put a lock on your bedroom door as a condition of the insurance.

Most insurers will extend the policy to cover accidental damage. It might cost a bit more, but it often proves a useful addition to student contents insurance. If you have a party in your room, for example, it’s not hard to imagine that something could get broken.

You might also want to consider insurance for your possessions when they are not in your home. You could then be covered if your tablet or laptop was stolen when you were out and about.

STUDENT INSURANCE TIPS

1. Don’t assume that your possessions will automatically be covered by the family home insurance policy, halls of residents or your landlord’s insurance.

2. Check policy excesses and terms and conditions to ensure you have the level of cover you need and that you can fulfill the insurer’s requirements - for example, insurers may specify that you lock your bedroom door when you leave the house.

3. Items such as bicycles, musical equipment and course fees are not usually covered as standard, but cover can be bought for an additional premium.

4. Expensive items will need to be listed separately on the policy to ensure the cover is adequate.

5. Check the period of insurance, some policies don’t provide cover outside of term-time.

6. If you live in shared accommodation – each of you will be responsible for taking out your own contents insurance.

7. While many insurers will replace laptops, new for old and sometimes within 24 hours, they can’t replace the data the laptop contains – so get into the habit of saving essays to external drives.

8. Don't keep more cash in your digs than is absolutely necessary and never keep your PIN codes with your cards.

9. Register your valuables on an online property register so if they're recovered they can be traced back to you.

10. If you are living in halls of residence be careful who you let in, or who comes in after you, as they may not necessarily be a student.