By this time of year many high school seniors are preparing for their next level of studies. Their plans may include heading off to college in another city or state. One of the most important things they will need at school is something that doesn’t have to be packed at all – the right insurance coverage.
Is Your Child Renting a Home or Apartment?
If your child is renting a home or apartment with others, you may want to consider a renters policy. The concern is that roommates can create liability for you if their actions cause a loss, (parties, drinking, etc). You might be exposing own liability insurance thus increasing your premiums over time. We usually recommend a separate renters policy to keep the liability separate. This will keep any liability separate from your individual policy.
As parents it is important to understand how sending your child off to college may impact your insurance needs.
Typical Insurance issues- (living in dorms)
- Personal property – Depending on the value, items like clothes and computers should be covered under your homeowner’s policy. Most homeowner’s policies provide 10 percent of Coverage C (Personal Property) for your property while it is at a secondary residence. If you have a high deductible on your homeowner’s policy you may want to consider purchasing a renter’s policy for your college student to cover his/her belongings at a lower deductible. Check with our office for any limitations.
- Jewelry or other high end items – These may require special coverage. It is a good idea to call our office for a review.
- Personal Liability – This coverage is provided anywhere the student goes, unless it is outside of the US. Then the policy may have some limited coverage.
What will an Auto policy provide?
- Auto – If your child is living in a different city or state without a vehicle, please notify us as there may be an additional discount since they are not a full time driver. We do recommend keeping your child on your policy, even if they don’t have a car at college.
- Health – Children can remain on your health policy until the age of 26.
Once your child graduates and moves out of your home you and your child will need to make different decisions regarding their insurance needs. We recommend you contact us to review all the exposures with you, which will allow us to create individual solutions for you.
Maybe you can’t afford to replace it all, but you can insure it — and usually very inexpensively. A renters insurance policy costs less than a dollar a day in many cases. In case of the unexpected, that small daily cost will save you thousands.
For particularly valuable items, you can add a personal articles policy to cover it.