Student renters without personal insurance at risk for major losses

In the aftermath of recent fires in off-campus residences and robberies in South Campus, Boston University students and officials said they are recognizing the importance of taking precautions to protect their valuables.

The Campus Housing Risk Mitigation Research Study surveyed 59 chief housing officers representing colleges and universities across the United States. Thirty percent of the respondents reported more than $50,000 in property damages in the 2010-2011 academic school year were due to fire, flood and other incidents in residences. Each incident had an average of $5,000 in losses.

The study also reported theft of personal belongings and bike theft generated the highest number of incidents “resulting in damage or loss to resident personal property” in 2010-2011.

Bill Suneson, co-founder and president of Next Generation Insurance Group, said his company supported the study because it provides insurance products to college students, young adults and their families.

“The big take away from that was the need for renter’s insurance,” Suneson said in a phone interview.

A recent survey conducted by Apartments.com found that 20 percent of communities polled require residents to carry renter’s liability insurance throughout their tenancy, according to the study.

“Some building owners are now requiring tenants to buy renters insurance before they move in there,” Suneson said.

The BU Housing website states off-campus residents should carry sufficient personal property insurance as BU’s insurance program only covers BU-owned property.

BU spokesman Colin Riley said BU encourages families to explore their options in extending their homeowner policies to their children when they go to college, as the university does not assume responsibility for students’ personal property.

“The things is, you’re . . . young adults,” he said in a phone interview. “You learn a lot of things when you transition to full independence. You’re realizing that there are additional issues.”

Fifty-seven percent of respondents strongly recommended students obtain renter’s property insurance, while 26 percent strongly recommended they obtain renter’s liability insurance, according to the study.
School of Management junior Diana Whalen, who lives off campus in Allston, said she does not have renter’s insurance.

“My roommate had her laptop and an iPod stolen from our apartment,” Whalen said. “We didn’t do anything about it and she just had to replace the stolen things with her own money.”

Students living in apartment-style on-campus housing said they recognized the convenience of having renter’s insurance after a string of robberies in South Campus.

Eilis Meagher, a senior in SMG, said her TV, camera and jewelry were stolen from her on-campus apartment in South Campus when it was broken into on Jan. 13.

“My parent’s homeowner’s insurance covers me at school, but the policy has a $1,000 deductible,” Meagher said. “The amount I had stolen from me was probably closer to $400 or $500, so since it was less than the deductible, we did not file a claim.”

Meagher said she plans on purchasing renter’s insurance when she is no longer covered by her parents’ plan.

Suneson said incidents such as the fire at 84 Linden St., which left seven BU students homeless, illustrate the importance of having renter’s insurance.

“It’s a perfect reason why renter’s insurance is important,” Suneson said. “Renter’s insurance not only provides coverage for property but also provides loss of use coverage. If they had a renters policy, we would have paid for them to stay in a hotel.”

David Goldenberg, the father of fire victim Josh Goldenberg, said his son lost all of his possessions in the fire. David’s insurance policy partially covers Josh’s losses.

“They don’t really pay for replacement value,” David said. “He lost thousands of dollars in possessions. His computer, his glasses [and] all of his clothes.”

Students living off-campus, such as Whalen, said the incidents reminded him of the importance of obtaining renter’s insurance.

“The incidents on Linden Street and in Brookline make me more concerned that we have properly functioning fire alarms than renter’s insurance,” Whalen said. “However, having the laptop and iPod stolen do make me think that we should look into renter’s insurance.”

BU has no requirement for off-campus students to purchase renter’s insurance, Riley said.

“That’s a personal decision,” he said. “The people who live off-campus certainly have a different situation in the sense that there’s a landlord or other tenants . . . when you live off-campus, you are deciding to live independently of the university.”

Suneson said one of the benefits of renter’s insurance is its affordability. Policies cost between $110 and $200 a year.

“While break-ins on campus are luckily not too common, renter’s insurance can give you peace of mind that you won’t find yourself having to shell out thousands of dollars to replace a laptop mid-semester,” Meagher said.