Student contents insurance explained

by Esther Shaw Apr 22, 2021 3 minutes

As a student, you may think there’s no need to shell out for contents insurance while at university. But if you don’t have this cover in place, you’ll end up out of pocket if your valuables get lost or damaged – or if you end up as a victim of crime.

In fact, during your studies, a standalone contents insurance policy should be viewed as a ‘must-have’ rather than just a ‘nice-to-have.’ Here’s a closer look at why.

What does contents insurance for students cover?

Typically, this type of insurance covers lost or stolen gadgets, such as laptops and phones, as well as other possessions, including your clothes and shoes which can also add up to a fortune if you need to replace them all. Some content policies for students may also cover bikes, as long as they are properly locked.

What are my options?

Before purchasing a standalone student contents insurance policy, it’s important to find out if you are already covered. The two places to check are:

Your halls of residence agreement
Your parents’ own household contents policy

See what cover is offered by your halls

If you are going into halls, the good news is, most provide some sort of insurance as standard. Cover usually includes belongings such as your laptop, sports equipment and clothes for no extra cost.

While this may sound positive, be aware that free cover is likely to have its limitations.

For example, you are unlikely to be covered for items you take out and about with you.

Speak to your university to find out the details of the cover offered.

If the cover is not extensive enough, you could consider paying for additional cover – such as cover for a lost phone. Also be aware that some universities may not offer any cover at all.

Dig out your parents’ policy

Before buying specialist student insurance, also check your parents’ household contents policy. Many offer cover for ‘children’s belongings away from the family residence’ as standard. If a household policy offers sufficient cover, you don’t want to end up doubling up and effectively paying twice.

Equally, even if your parents’ household policy doesn’t offer this cover, it may be possible to pay a small premium to extend the policy to include what you need while at university. Contact the insurer to find out.

Watch out for exclusions

If you do decide to rely on your parents’ policy, you need to read through the Ts and Cs carefully, as the cover may come with limitations.

Check if there is a cap on claims, for example. If payouts are capped at, say, £1,500, this may not be enough to cover items of value.

Find out also whether or not the policy pays out for accidental damage. If not, you will not be covered if, say, you drop your phone down the toilet or your laptop gets soaked in coffee.

And bear in mind that some household policies do not offer cover at all for a child’s phone while at university

If the cover offered by halls – or on your parents’ household policy – is not sufficient, you may find that standalone student insurance is a better option, and also better value.

Shop around to compare quotes

If you decide you do want to purchase separate student contents insurance, the key is to shop around. The best way to do this is by going online and using a price comparison service. You will have to provide a few details about you, your student accommodation, the items you want to protect – and how much they are worth.

Once you’ve provided all the information as requested, you will be given a list of potential quotes to choose from.

Optional extra cover

You may also want to consider paying for some ‘add-ons’ to a standard policy, depending on your needs. Here are some examples:

Items away from home. Some policies will only pay out on claims for items stolen or damaged inside student properties, but not while you’re out and about. If items are not covered outside the home, consider paying for ‘personal possessions cover’
Expensive one-off items. With many policies, there will be a ‘maximum limit’ that any single item can be worth before you need to list it separately. This limit is often around £1,500. If you have a particularly high-value item, such as a high-end laptop or musical instrument, that may need to be specified
Bikes. While some student contents insurance policies may include bikes (as long as they are properly locked up), if this cover isn’t offered as standard, you may want to pay for this as an extra

Other ‘extras’ you might want to consider include ‘musical instrument cover’ and ‘lost room key cover’. Be aware that adding ‘optional extras’ will bump up the cost of your premiums, but will give you peace of mind

Things to think about when choosing a student contents policy:

Check if the policy includes ‘accidental damage.’ This could prove vital if you accidentally break something

Beware of opting for a very cheap policy, as this may come with a high excess – the amount you agree to pay yourself if you have to make a claim. If you sign up to a policy with a high excess, you need to be sure you can afford this sum
Check whether your policy offers cover during university holidays (such as Christmas and summer), or if you are only covered during term time
Insurance requires the policyholder to have a ‘duty of care.’ This means that if you leave your shiny new iPhone on a bar table while you go to the toilet – and it gets stolen – your insurer may not pay out

Policies are also unlikely to pay out if there is no sign of forced entry – for example, if one of your housemates steals your laptop

With so many things to think about – and policy features varying considerably from one provider to the next – you need to compare policies carefully to find the right one for you.

What will student contents insurance cost?

While the quotes you get will depend on your individual circumstances – and what you’d like included – student contents insurance needn’t cost the earth.

That said, certain factors may play into more expensive premiums – such as if you live in a ground-floor flat with no burglar alarm. In this scenario, insurers will deem you a higher risk.

Simple tips to bring costs down:

Improve security features on your student accommodation. Get a burglar alarm installed, and approved locks fitted on windows and doors
Pay upfront. Pay for your annual policy in one go rather than in monthly instalments (where you get charged interest)

Opt for a higher excess. But only go for a level you can comfortably afford

Don’t automatically renew your policy

Once you’ve bought student contents insurance, it can be tempting to sit back and let it auto-renew. But if you do this, you could end up paying over the odds for your cover.

The best way to keep costs down is by shopping around and comparing prices each time your policy is up for renewal.