October 3, 2011, Phoenix, Arizona – National Multi-Housing Council – Student Housing Conference – New research from Next Generation Insurance Group (NGI) reveals that college students are often unaware of their exposure to property and financial losses due to fire, theft and vandalism in on- and off-campus housing. Inadequate liability protection also places unnecessary financial burden on Student Housing Providers for property damages caused by resident carelessness and negligence.
Government data confirms that fire and theft are of particular concern. The most recent data available from U.S. Fire Administration National Fire Data Center indicates that, on average, an estimated 3,800 university housing fires occur annually in the United States. These fires resulted in an average of approximately five deaths, 50 injuries and $26 million in property loss each year. Over the 2007-2009 data period, roughly 28,000 burglaries were reported on campuses each year, with in excess of 14,000 per year occurring in the residence halls. (2007-2009 ed.gov safety statistics) http://www2.ed.gov/admins/lead/safety/criminal2007-09.pdf
Students living independently for the first time may mistakenly believe that their parents’ homeowners insurance will protect them. In many cases, homeowners insurance contains high deductibles or eligibility requirements that may exclude certain claims, ultimately making it insufficient or inadequate for college students and their prospective risks.
Rental housing expert, Ben Hoglund, CPM, believes that it is incumbent upon student housing providers to educate their residents on the importance of adequate renters insurance protection. “They aren’t going to learn that in class,” proclaimed Hoglund.
The survey conducted by Hoglund and NGI highlights the need for renter education. The survey “2011 Campus Housing Risk Mitigation Study” researched the types, causes and monetary impact of property damage occurring on college campuses across the United States. The study also addressed student and housing provider awareness of available insurance products to mitigate these risks. The findings show that:
- –Thirty-three percent of respondents indicated that it is not their policy to require reimbursement for resident-caused fire or property damage in excess of $5,000.
- –Campus policy on required property insurance varies, with many schools having no requirement with regard to renters insurance.
- –Twenty-four percent of respondents were not aware that some renters insurance products do not include both personal property and liability protections.
- –A majority of respondents estimated that less than 60 percent of their student residents are aware that they can be held financially responsible for damage to university property for which they are at fault.
- –Vandalism, bicycle theft and electronics theft are the most reported personal property losses by campus residents.
“Student housing providers are making great strides in terms of knowledge of sophisticated insurance products and programs to improve education around resident safety issues, but there is more still to be done,” said John Fees, CEO, Next Generation Insurance Group. “This survey provides strong basis to indicate that campus housing leaders have significant opportunities to reduce property damage losses and lessen resident financial exposure through adoption of policies commonly employed in the private sector.”
Due to higher insurance deductibles and low collection rates on resident damages, private sector housing providers have become proactive in their efforts to mitigate property financial losses caused by resident carelessness and negligence. The survey concludes that these negative trends can be improved by:
- –Policy changes to require resident reimbursement for community property damages due to resident carelessness or negligence.
- –Recommending that campus residents obtain personal property insurance as well as personal liability coverage. Improved awareness of renters insurance features, especially regarding personal liability protection.
- –Improved education targeted toward students and other campus residents regarding their own potential financial responsibility in the event of fire, flood or other property damage caused by their own carelessness or negligence, or lack of reimbursement for damages to their personal property in the event of an accident for which they are not at fault.
- –The Campus Housing Risk Mitigation Research Study was conducted among Chief Housing Officers from the Association of College and University Housing Officers – International (ACUHO – I) on behalf of Next Generation Insurance Group. These Housing Officers have a combined occupancy of nearly a quarter million students.
NGI’s insurance products include renters insurance that cover personal property loss in the case of fire, certain natural disasters, theft and vandalism, and provides personal liability protection for bodily injuries to another person or for damages to another person’s property if an incident occurs within the rented residence or elsewhere.
About Next Generation Insurance Group, LLC (NGI)
Founded by veteran affinity and collegiate marketers, Next Generation Insurance Group builds specialized insurance programs and delivers innovation to the insurance industry, enabling consumers to mitigate the risks in their lives, fulfilling the needs of underserved consumer groups, especially first-time insurance buyers – young adults, students, graduates and their families. An authority in life-stage marketing and emerging trends and markets, NGI’s insurance programs serve the next generation of insurance customers by providing “right fit” insurance products that are distinguished by their relevance, convenience and value.
NGI is a nationally licensed insurance agency that delivers branded insurance programs through multiple channels including national and regional insurance agents, affinity groups and financial institutions. In partnership with Sallie Mae, it created Sallie Mae Insurance Services to offer specialized programs to colleges and universities, Upromise and Sallie Mae customers. NGI’s offerings include: GradGuard, the nation’s first comprehensive insurance and benefit solution for college students and their families; CollegeRentersInsurance.com, offering personal property and liability protection for college students; and StudentHealthPlan.com, an alternative to school-sponsored health insurance for full- and part-time and non-traditional students. NGI has been awarded a provisional patent for its Education Life-Stage Insurance Programs. More information is available a twww.nextgenins.com. Follow the company on Twitter @nextgenins for life-stage risk news, information and product updates.