The fall transition back to school is busy and expensive, but it's also prime time to be marketing this policy to parents of college-bound kids.
Dormitories are the hallmark of college life for many young adults, but millions of American university students make the choice to live off-campus in apartments. And while the National Retail Foundation’s 2014 Back-to-School Survey expects the average college student and their family to spend upwards of $900 this fall, there is one additional consideration producers ought to be bringing up to parents: renters insurance.
“As back to school shopping kicks into full gear, parents and students are busy stocking up with items such as laptop computers, tablets, printers, mobile devices, bicycles, stereo equipment, televisions and hard to replace items that are worth protecting if destroyed by fire, lost or stolen,” said Christopher Hackett, PCI director of personal lines policy. “As parents and students living in apartments think about issues such as transportation and safety, a simple renter’s insurance policy will give them peace of mind that personal possessions are covered and will be replaced should something happen.”
Mark Carrasquillo, an account executive with EG Bowman in New York City, has had the most luck selling renters policies not to the students themselves—who mistakenly believe their landlord will cover any mishap or stolen property—but to their parents.
“Every generation has millennials, so to speak,” Carrasquillo said. “At one point in time, we were all in our 20s, just out of college or the service, and we found ourselves in the workplace and not making a lot of money. If it weren’t for a family support group, you weren’t going to purchase renters insurance.”
“It’s actually parents who have the wherewithal to say, ‘Look, you’re not moving to the big city without this. Of the many conversations on renters insurance I’ve had over the years, most have been with parents—not the person renting the property.”
In pitching renters insurance to millennials, Carrasquillo says it’s vital to discuss the relative affordability of the coverage and its importance.
“You’d be surprised what you can afford,” he said. “You have to prioritize, and this is something that should be included in the budget. The happy hours with your frat brothers and sorority sisters have to stop.”
In fact, the PCI estimates that renters insurance is roughly $5.00 per week—far less than the $20 on average Americans spend on coffee.
"When a child moves away from home or goes off to college, it is easy to forget or not realize that there are important insurance questions associated with living on your own,” said Hackett. “It’s always good advice to read over your policy and have a conversation with your insurance agent or company to understand what is, and what is not covered. Although a renter’s policy will not replace lost homework, it will help replace personal items if something unexpected such as a theft or fire occurs.”
You may also enjoy: "Renters insurance: 10 cities with market potential"
"The vital renters insurance policy change you're not making"
"Bundling home and auto: Just how much does it save?"
