Student 'must-haves' make insurance cover essential

Home Office figures show that one in three university students are a victim of crime each year, so a good student insurance policy is essential.

According to Endsleigh Insurance, today's tech-savvy students carry more than 1,300 worth of goods on their person around town and campus.

The insurer's research found that a student cycling into university carrying their laptop, mobile phone, MP3 player and books while wearing a watch and typically valued clothes would have an average of 1,305 worth of possessions on them. This figure even excludes possessions such as jewellery, make-up, cash and credit cards.

The survey also found that the most common item taken to university is a laptop. Every student surveyed said they would either take a laptop (94 per cent) or a desktop computer (6 per cent) to university for the start of the new term.

Endsleigh spokesperson Vicki O'Connell says students are increasingly tech-savvy, with greater numbers than ever before taking smartphones, games consoles and laptops to university.

"As lifestyles become more mobile, the 'must-have' items become more portable. Our research shows just how easily the value of your possessions accumulates," she says. "It's important to remember that items which are lighter and smaller are also more prone to loss or theft. Our research looked at the possessions of an individual, but the value of a household can increase considerably when second and third year students house-share and have multiple sets of equipment."

Essentially students have two choices when it comes to insuring their possessions while they're at university: either being covered by their parents' home insurance policy or buying their own cover.

According to NFU Mutual, about 82 per cent of home insurance policies will cover student possessions as standard even if they live away from home. However, it's wise to check policy limits.

For example, in the case of a break-in, NFU Mutual's home contents insurance will cover loss or damage to a student's belongings to up to 15 per cent of the value of their parents' policy. So if the parents have 40,000 worth of contents insurance, their student offspring will be covered for 6,000 while they are living in student accommodation.

It's also a good idea to check that the policy covers personal possessions away from the home - this will cover the student if they're mugged for their mobile phone, for example. Cyclists should also check their bikes are covered while they are out and about, not just when they are left at home or in student accommodation.

Most policies will only cover theft if a property is forcibly broken into, so won't cover incidents where student possessions are stolen by another resident in a shared house. Another common clause in the small print is that possessions might not be covered while the accommodation is uninhabited during university holidays, so students should check before heading home for Christmas and leaving their valuables in their student house.

Julie Owens, head of home insurance at moneysupermarket.com, says: "Adding a student on to a parent's home contents policy is an obvious way of keeping the costs down. However, parents should be aware that any claims made will directly impact on their own claims history.

"It is also essential to make sure you read the small print, as cover levels can vary between providers from those on the existing policy."

Students wanting or needing their own insurance policy should shop around for the cheapest or best-value deal. Comparison sites such as Moneysupermarket.com and Confused.com make this easy to do.

Some students living in halls or university accommodation might have insurance included in their rent but they should check the details of this.

Students living in private accommodation shared with other students will each need their own individual policy for their own possessions - they won't be covered by any insurance their landlord has and insurance policies can't be split with other students.

How much student insurance costs will depend on what you want to insure and where you live - expect to pay more if you're living in an inner city area with a high crime rate. However, there are a number of ways to bring the cost down.

The first is making sure your accommodation is as secure as possible. Check whether it has burglar alarms or fire alarms and that window and door locks are adequate. In shared houses it can be a good idea to also fit a lock to your bedroom door. Think about marking belongings or taking photos of them to help in the event of a claim.

Next, try to avoid making claims, as your claims history will affect future premiums.

In some cases you'll be better off covering small claims yourself rather than making a claim and losing your no-claims discount.

Finally, consider increasing your excess. The excess is the amount of money the policyholder will have to pay in the event of a claim before the insurance kicks in. The higher your excess, the cheaper your premium will be.

However, it's important to set this at a level you could comfortably afford to pay if you did need to claim on your policy.