Issue 34.13
It’s August, and that means it’s time for the annual migration of college students. Students are loading their cars with clothes, books, XL twin sheets, computers, futons and mini-fridges. Parents may be wondering: Does my homeowners insurance cover all this?
More than 35,000 property crimes take place on college and university campuses each year, according to the U.S. Department of Education. Is your college-bound child adequately insured should his or her place become the next target?
Homeowners insurance generally provides personal property coverage for a student who lives in a dormitory or other university-owned housing. The coverage is typically 10 percent of what the parents have. If the parents’ possessions are insured for $100,000, the student’s are covered for $10,000.
If your child lives off campus, however, your homeowners policy may not cover them anymore. The key question becomes: Is the child still a resident of your household?
A multitude of factors determine residency. If the student returns home for the summer and is listed as a dependant on your income taxes, he or she is still regarded as a resident of the household. In that situation, the student would still be covered under your homeowners policy.
That’s not the case if the student lives at the apartment year-round and lists it as his or her permanent address. In that situation, the student has established his or her own residence and your homeowners insurance no longer applies. The student needs to purchase a separate renters policy for protection.
A renters policy will not only cover your college student’s possessions, it will also provide liability protection should someone be injured while on the premises.
Renters insurance costs about $100-$150 per year for $16,000 in coverage. That’s pretty affordable compared to the cost of replacing personal computers, stereo equipment and other big-ticket items that college students now take to school. C
Automobiles that go to school with the college student, but are insured by the parents, are covered. Car insurance covers more than a car. If the student is hit by a car while walking or bicycling, the family car auto policy would provide some coverage for medical expenses, uninsured or underinsured motorists might apply if available under the policy.
College is an ideal opportunity to teach your children the value of insurance. Sit down with them and your insurance agent to make sure their needs are covered.
For more information or a free no obligation review of your insurance needs visit with Orville or Sandi at 720 S River Rd Ste C 135 in St George or call at 435-688-8182.