The experience of booking contents insurance might not be high on the uni bucket list this term and with just a sixth of rooms in student accommodation considered to be affordable, you may think skipping contents insurance is an easy way to save.
But it could cost you more in the long run.
Indeed, a Confused.com study found that students have an average of £5,000 worth of belongings with them while at uni.
Before lectures begin and freshers’ week is in full flow, YourMoney.com gathered the thoughts of insurance experts to provide all that you need to know on contents insurance.
One option for students to use in their first year is the ‘temporarily removed from home’ part of their parents’ insurance.
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This is most useful for freshers in halls of residence, who can still have their parents’ home registered as their main permanent address.
Michael Foote, an insurance expert and founder of Quote Goat, told YourMoney.com: “There are a few options for students to cover their belongings. Some home insurance policies will insure their belongings while [they’re] away.
“But never take this as a given; parents should check with the provider to ascertain what’s covered and what isn’t.”
It is also important if you are taking advantage of this policy to confirm it is okay with your parents, as they will ultimately be making any claims should the situation arise.
There are also specialist providers designed for students living in halls or privately rented accommodation. Some of the specialist student insurers include Cover4Insurance, Endsleigh and Howden’s.
Helen Phipps, director at Compare the Market, said: “These policies typically protect your possessions against loss, theft, and damage. When choosing a policy, students should assess their coverage needs, ensuring adequate protection for items like smartphones, laptops, and clothing, while being mindful of the single-item limit for high-value possessions.
“It’s crucial to understand what the policy covers, including common exclusions like accidental damage and theft without forced entry. It is a good idea to buy your insurance before the academic year starts to ensure your belongings are protected from day one.”
Cutting the price of a policy
As most people who survived first year will know, money is often a luxury, so keeping on top of your premium price is vital. Indeed, Save the Student recommends that you do not pay any more than £100 per year for your contents premiums.
Phipps added that the best way to keep the price of your policy at a reasonable level is to compare the options thoroughly before picking one.
“It’s worthwhile knowing what deals are available before making your decision”, she said.
Increasing voluntary excess
Other ways include increasing the voluntary excess – the amount you pay for making a claim – of your policy, which will knock down the costs as a result.
Phipps warns that you should “make sure to only choose a level of excess you can afford, as you will need to pay this cost if you make a claim.”
“If you’re in a financial position to do so, it could work out cheaper by paying upfront for a year, instead of spreading the cost by paying monthly, which typically comes with paying interest,” she said.
Sharing is caring
Another savvy way to cover yourself, if you have moved into a shared house, is to split the bill with your new housemates.
This might be preferable if you all have expensive belongings you want to cover as a team.
But, it is advisable for everyone to be honest about their clumsiness and track record of losing phones and other gadgets. This is because you’ll lose your no-claims discount if anyone in the house needs to make a claim – even if it’s not you.
