Insurance Protection for Your College Student

Plan ahead to make sure your college student has appropriate insurance protection while away at school.

As the summer winds down, millions of college students will be heading back to dorms or apartments across the country. If your child is among them, you probably have made sure your student has the necessary furniture and electronics for a successful year. But have you considered whether these items will be covered if lost or stolen?

Insurance companies cover full-time students under age 25 in various ways. Check with your insurance agent before your child returns to school to see if your personal homeowner policy’s contents coverage applies to your child’s possessions in a dorm room or apartment, and if your homeowner liability coverage extends to your child while living away at school. It's important to consult your agent with questions about your specific policy and situation.

Three Basic Ways a College Student's Possessions Might be Covered

1. As a percentage of the personal property limit on the parents’ homeowner policy.

Many insurance companies consider campus housing a secondary residence for the student and may cover your student’s possessions as a percentage of the personal property limit on your homeowner policy – personal property means items you can remove from your home or premises. For example, if you have $75,000 in personal property coverage, your student may have 10% of that, or up to $7,500, in coverage for belongings taken to school. Liability coverage – which insures legal liability for bodily injury or property damage to others – may not be included.

2. As part of the personal property limit included in the parents’ homeowner policy.

Some insurance companies offer broader coverage through their homeowner policies. These companies allow the parents’ personal property limit to include the student’s belongings and liability without defining a percentage. For example, if you have $75,000 in personal property coverage on your homeowner policy, this includes items you have in your home as well as those that your student takes to school, and liability coverage is automatically included.

3. Under a separate renter’s insurance policy in the student’s name.

Some insurance companies contend that being away at school for nine months of the year is long enough to require a separate renter’s policy to cover belongings and liability. Liability insurance is usually included in a renter’s policy. Keep in mind that a renter’s policy in the student’s name may be the more expensive option. In most situations, each roommate needs a separate insurance policy.

Update your Auto Policy

Planning to send your child to school with a car? Your agent may need to amend the address to reflect your child’s address at school. This is known in the insurance industry as the “garaging location,” whether or not a garage is involved. Keep in mind that distance from home may be one factor in the premium cost for your policy.

And even if your college student will not keep a car at school, it’s important to keep your agent in the loop. When your student is no longer a year-round member of your household, he or she does not have full-time access to the vehicles on the policy and may result in a rating change, possibly saving you money.

Sending a child off to college or university can be an exciting and challenging time for parents. Ease your mind by talking with your independent insurance agent to ensure you and your child have the proper coverage while away at school.

This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact your local, independent insurance agent for coverage advice and policy service.