FINANCE: Understanding Protection for the Modern Student Co-Op with Alex Grimnes and Brandon Fry (Part One)

These days, it seems as though everyone has a different opinion on insurance.  How much to get, where to get it, and which highly paid actor to listen to on those clever but misleading low quote insurance commercials.  Unfortunately, a lot of these opinions on insurance become over-exaggerated and obscure, and cause more damage than good. Insurance is one aspect of finance that can make any individual, let alone a college student, cringe without the right information. 

Fortunately, there is a way to find clarity through all of the muck and misperception of insurance.  That clarity is through education and finding a basic understanding of what insurance is, why we pay for it, and the benefits of not only protecting yourself, but protecting others.

So, let’s break down on key aspect that most college students continue to ignore.

Renters Insurance:

It’s true that the majority of college students either lives with parents or rents out an apartment. In the case of which a student resides at home, renters insurance doesn’t necessarily apply, but for the rest of us that live in apartments, condos, rented houses, etc, renter’s insurance is a necessity that is often overlooked.  There are a few key points often misunderstood about renter’s insurance that we would like to clear up.

           

1.     Renter’s Insurance not only covers stolen items, but also provides liability insurance. Why would you need liability insurance? Well, for accidents or lawsuits that happen outside of vehicles, you need to be covered. 

2.     Renter’s Insurance is cheap.  For around $120 a year, you can protect that fancy new laptop, television, commuter bike, and much more.

3.     Your landlord DOESN’T have insurance on your possessions. Let’s imagine that your building burns down, you are not covered under the landlord’s insurance to protect your things. Now, I know that a building burning down is kind of a long shot, but think about things that happen every day.  If a pipe breaks and floods the apartment, the landlord isn’t liable. If a window is left open and the sprinklers damage all of your possessions, the landlord isn’t liable.

So, what is the alternative? For the price of one 30 Pack of Miller a month, you can protect not only your possessions, but also cover your back for the accidents that happen outside of a vehicle. No matter what your opinions on insurance, for around $100/year, you can protect yourself from losing those things that you rely on the most.

Stay Smart,

Alex Grimnes 


www.maximwealthstrategies.com