INSURANCE: Safe as student houses

Insurance cover and basic security precautions are inexpensive investments that can save a lot of headaches

One of the first things you should do when you arrive at university or college is to get insured. Unfortunately, students are prime targets for burglars and student halls of residence and rented houses make rich pickings. Expensive goods such as computers, stereos, TVs, CDs, cameras and mobile phones are all easily stolen and burglars stake out houses where they know there are a lot of students coming and going.

Sheila Docherty, the vice president (welfare) of the students union at the University of Bristol, advises all students to get insured. "Students houses may have a computer and a stereo in every room and with students constantly moving about, security can be quite lax."

The other problem is that landlords often don't put the best locks and bolts on all the doors and windows. "When you are moving into a new house, security is not always the first thing you think about," says Sheila Docherty. "But once you have moved in, make sure that there is a proper deadlock or Yale lock on the front door and that there are locks on the windows. If you have a security system, use it."

Many students think they don't have anything worth insuring and that they will save themselves money by not getting insured – but this is a false economy. A spokesperson for Endsleigh, the specialist student insurer, says: "If you add up the cost of replacing the things you are taking away to university or college you will undoubtedly find that it runs into thousands of pounds."

Mark Foster, 20, is studying a BSc in geology at the University of Hertfordshire, and is about to move into a private rented house for his second year. He is going to get insurance now that he has moved out of a hall of residence because one of his friends was burgled and he knows he runs a risk by not being insured. "My friend's house in Hatfield was burgled last year over summer vacation and he lost everything – his computer, mobile phone, all the key target items. Luckily he was insured. Burglary is a problem you have to think about."

But before you pay out for insurance, check that your contents are not already covered by your parents' home insurance policy. In some cases it is possible to extend a normal household policy to a student's possessions, but cover is likely to be limited and your parents will need to check how their no-claims bonus will be affected if you do have to make a claim. Churchill's standard policies automatically cover belongings away from the home for permanent members of the family and that includes sons and daughters. Children's possessions are covered for up to 10 per cent of the sum insured and this tends to provide £3,500 of cover, as standard cover is £35,000. The other thing to check is whether your hall of residence covers you for insurance, as some universities are taking out block cover for their students living in halls of residence.

If you have decided to take out your own direct policy, it is worth shopping around. There are a growing number of specialist student insurance companies, the main ones being Campus, Endsleigh and Saxon Direct. As Sheila Docherty says: "Make sure you choose a company that will insure individual rooms in halls of residence and houses, and research what the premiums are and what you are going to get for your money."

Also find out the minimum amount you have to pay if there is a theft and see who is underwriting your firm – you don't want a fly-by-night company that is going to go bankrupt. When you come to giving a figure for how much your belongings are worth, make sure that it is high enough. Research has shown that students frequently underestimate the value of their belongings. If your policy is one in which possessions are replaced following a claim on a new for old basis (which means you will receive new items at today's prices), you must insure your belongings at their replacement as new value.

Premiums for a single room in a hall of residence are very reasonable: Endsleigh will insure contents worth up to £2,000 from £18 a year and the Student Shield policy from Saxon Direct starts at £15 for full-risk cover, while Campus offers a flexible three-year protection plan and online quote and cover service.

Once you leave the secure environment of a hall of residence and move out to private rented accommodation, the premiums do rise. The amount you pay will depend on where you live and whether you are considered to be in a high-risk category.

Endsleigh, for instance, has 10 area categories, and a student living in Leeds LS2, which is one of their highest risk areas, will have to pay £96 for £2,000 worth of contents. In Cheltenham, which is their lowest risk category, a student will pay £24 for same cover. It is also worth having a look at what the big banks such as NatWest, HSBC and Lloyds TSB offer in the way of insurance as part of their student packages.

USEFUL WEBSITES

www.churchill.co.uk
www.directline.com
www.endsleigh.co.uk
www.saxoninsurance.com
www.hbinsurance.co.uk
www.campus.webx.co.uk