College Bound: What Students and Parents Need to Know
Insurance News You Can Use
As summer turns to fall, students have headed off to college and are busy making their dorm room or apartment feel like home away from home, complete with a laptop, TV, stereo equipment, clothes, video games, and maybe even a new iPad.
Whether your student is taking all of his or her worldly possessions or just enough to get by, they’ll need insurance to cover the things in their dorm room or apartment. Now is the time for parents to make sure your student is covered by your homeowner’s insurance or a separate renter’s insurance policy.
Students living in dorm rooms are typically covered by their parents’ homeowners policy if they are temporarily living at school and are younger than 24 years old. However possessions in a dorm room are considered “personal property located off premises” and most homeowners polices limit coverage to 10 percent of off-premises property. For example, if you have $80,000 in coverage for your home, your student’s dorm room is covered up to $8,000. If your student is taking lots of valuable items with them to live on campus, he or she may want to take out a separate renter’s insurance or property policy if the value of their belongings exceeds the coverage offered through the homeowner’s policy.
Renter’s insurance is a must if a student is living in an off-campus apartment. Most insurance companies consider students’ apartments permanent residences, which means a parent’s homeowners policy doesn’t apply. A landlord’s insurance also doesn’t cover a renter’s personal property. Renter’s insurance usually costs less than $250 a year for about $15,000 in coverage and covers the possessions in the unit in the event of a loss. It also protects the individual from liability if he or she causes damage to the rental unit.
Knowing you have the right insurance in place will provide peace of mind to you and your student. To review your existing policy or for more information, contact us