As university terms approach, parents and students are being alerted to a sharp rise in the value of insurance claims for belongings, with the average payout now standing at £1,766. This figure represents a more than doubling since 2022, when the average claim was £781, according to recent data from insurer Aviva.
The increase highlights the potential financial impact on students if their possessions are lost or stolen, whether or not they have specific insurance policies.
Common Causes for Claims
The majority of student insurance claims are for theft. This can encompass burglaries of homes and vehicles, as well as items being taken while students are out. The remaining claims are attributed to accidental damage, such as dropping electronics or spilling liquids on devices. Laptops, phones, and bicycles are among the most frequently claimed items.
Understanding Insurance Coverage
In some instances, students may be covered under their parents' or guardians' home contents insurance. Aviva indicates that students in full-time education might be included through the 'contents temporarily removed' clause in a parent's policy. This coverage typically extends to belongings kept in term-time accommodation but often requires the student to return home with their possessions during holidays. It is advisable to confirm specifics with the insurance provider.
Policies of this nature generally cover theft and damage from events like fire and water leaks. Some policies may offer additional 'personal belongings' cover for items taken outside the home, such as smartphones, laptops, and jewelry.
If a student is not covered by a parent's policy, they can opt for specialist student contents insurance. The annual cost for such a policy is approximately £74, though this can vary based on location and the value of the student's possessions. Some universities also include contents insurance within the cost of university-managed accommodation, and certain student bank accounts may offer this as a benefit.
Protecting Valuables
To help prevent claims or ensure coverage is not invalidated, students are advised to take several precautions. These include consistently locking doors and windows when leaving their accommodation, never leaving valuables unattended, and keeping high-value items out of sight. For bicycles, proper security by storing them inside or locking them to a fixed object when unattended is crucial for claim eligibility.
Furthermore, students who take a car to university must inform their insurer of the change in address. Failure to update policy details can impact cover and the validity of claims. Steven Jackson, home product manager at Aviva, emphasized the importance of simple measures like securing rooms and avoiding leaving valuables unattended. He also reiterated the value of checking existing insurance arrangements through parents, universities, or bank accounts, and considering optional add-ons like 'Personal Belongings' cover for items taken out and about.