Insurance for renters at MSU encouraged

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A house fire at 318 Elm Place left 11 people temporarily homeless and possessionless, and the fact no one had renter’s insurance to cover their belongings made the situation more difficult. Many MSU students, however, would be in a similar situation should a disaster happen to them.

Renter’s insurance protects possessions in natural disasters and theft. Insurance officials said there are many misconceptions about renter’s insurance, especially among college students. Although it costs about $170 annually in Michigan for renter’s insurance, only 30 percent of renters have it.

“It’s definitely not a high percentage of people who purchase renter’s insurance,” said Lori Conarton, communications director for Insurance Institute of Michigan. “It’s unfortunate because a lot of time people assume that a fire or tornado that destroys their home that the landlord’s insurance will cover their belongings. But that’s not the case.”

Conarton said many students believe they are covered under their parents’ homeowner plans, but that is true for only a small number of cases. Even if students are covered through their parents, it is limited to a percentage of the content portion of the policy, whereas renter’s insurance has no ceiling.

Angie Rinock, spokeswoman for State Farm Insurance, said policies vary, and it is best to ask the insurance company about what is specifically covered.

Nick Howison, a communication junior, said he has considered renter’s insurance because he has valuable music equipment in his home. Still, he doubted Friday’s fire will ignite a wave of students purchasing renter’s insurance.

“I think it should create a sense of urgency,” he said. “But I’m not sure if the fear of losing all your stuff will make people get insurance because it doesn’t happen frequently.”

Some students, however, generally were uninterested and unconcerned in whether they had renter’s insurance.

“It’s just not one of my priorities right now,” said Zoe Shumate, a psychology sophomore.

Brian Hagan, an agent with Hagan Realty, said he believes very few of his leaseholders have rental insurance. He said the application process for rental insurance often requires gathering information about when the house was built and what kind of improvements were made.

“We don’t get a lot of those calls, which would lead us to believe a lot of people aren’t getting it,” he said.

East Lansing police Capt. Tom Johnstone said theft is a problem in the student rental housing community and that students would benefit from renter’s insurance.

“There’s a lot more larcenies and property crimes here than people would think in a year,” he said.

The former occupants of 318 Elm Place have been getting by with the financial support from friends, family, MSU and strangers which has helped them replace many of their belongings. But Friday’s fire could serve as a lesson for students, Conarton said.

“Sometimes you’re just not thinking at college,” she said. “It’s your first time out of your parents’ home and you’re not thinking about what could happen. You’re not thinking a fire could happen.”

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