Even though most students know the importance of having car or homeowner's insurance, banking representatives say students underestimate the value of renter's insurance.
Rich Job, Bank of the West sales representative, works with many USD students and said not enough of them get renter's insurance when they move off-campus, which he attributes to a lack of information. He said renters' insurance is important not just for the protection of personal property, but also for the student's liability coverage.
Jerry Priebe, a State Farm insurance representative in Sioux Falls, also says more students need to be aware of the importance of renter's insurance.
"I'd love to see everybody buy (renter's insurance) because it protects them properly," Priebe said.
But some students just don't understand the point in getting renter's insurance. For senior Bryce Reidiger, his main concern is the price of insurance.
"I'm a college kid, you know, and renting is expensive enough," Reidiger said. "I don't want to break the bank."
Banking representatives say students shouldn't worry about the cost because most policies range from $90 to $100 per year.
"Companies understand that students have a tight budget, so they offer things like payment options, sometimes with payments as little as $10 a month," Job said.
There are bigger and more expensive plans that can cost more, Priebe said, but a minimal plan is affordable and worth the money for all renters.
"To be safe, everyone should have the opportunity to buy their own (insurance) because it is affordable," Priebe said.
Junior Cam Stalheim said he might have considered getting renter's insurance if he knew more about the benefits.
The problem with renter's insurance is that people aren't informed about it and many students believe their landlord's insurance will cover them, when it actually only covers the landlord's property.
Renter's insurance, on the other hand, covers the renter's personal belongings and the renter's liability. Priebe said that landlords should recommend insurance to all of their tenants.
"(Renter's insurance) has on and off the premises coverage for personal belongings that you own," Priebe said.
Renters' insurance will cover a renter's possessions, even if they're in a storage facility, but Priebe said it won't cover automobiles.
Priebe also said the liability coverage that is covered under renter's insurance is beneficial to the renter. The liability coverage will pay for medical expenses of someone hurt on the rental property.
Renters' insurance in houses with several roommates or unmarried couples must be bought by each member of the house individually, Job said, and the process of getting renter's insurance is very simple.
"There's only one thing (renters) really have to have an idea of and that is the amount of personal property coverage they would need to have," Job said.
Job recommended that when renters want to buy renters' insurance, they should add up the monetary value of their most expensive possessions, so they know about how much the possessions are worth.
Even though the process to get renter's insurance is very simple, Job said, many renters still don't get the insurance.
"Nobody is forcing them into getting (insurance). They don't have to," Job said.
Even with the low payment options for renter's insurance, Stalheim said for him, it's still not worth the cost.
"I would consider it but I probably still wouldn't get it. I'm just not concerned enough that something would happen," Stalheim said.
Reach reporter Dede Johnson at Deanna.Johnson@usd.edu
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