Insurance Considerations for College Students
Posted on Wed, Jun 01, 2011
As you prepare your child for college, you’re probably thinking they’ll need bedding, small appliances, a computer, etc. For most people, insurance is not tops on the priority list. But there are some important issues you should consider.
Renters Insurance
If your college student is renting an off-campus apartment or house while away at school consider purchasing renters insurance to protect their personal property, such as a computer, television, stereo, bicycle or furniture, in the event that it is damaged, destroyed or stolen.
If your child is living in on-campus housing, they may be covered under your homeowners or renter’s insurance policy. Find out though how much coverage you have in this category. Often, the homeowners insurance has limitations for personal property away from the residence premises. For personal property “usually located” at an insured’s residence other than the “residence premises,” there is often a limitation of 10% of the coverage amount, or $1,000, whichever is greater. $1,000 is probably not enough to cover the cost of your child’s possessions. This problem can be easily rectified by adding a “floater” or “rider” to your policy for the value of your student’s possessions.
Also, before your child leaves for school make note of such things as purchase prices, model numbers and serial numbers. It also is a good idea to take photos or video footage of any personal possessions for documentation and keep this information at home. If you have to file a claim, the insurance company will ask the policyholder for proof of purchase for all items reported on the claim.
Auto Insurance
If your child is planning on having a car on campus, choose a safe, reliable car to drive – the model chosen greatly affects the cost of auto insurance. You should also notify your insurance carrier of the change in garaging address as this can affect the premium
If your college student will not have a car during the school year (many schools restrict cars on campus for the first couple of years) and attends a school at least 100 miles from home, tell your insurance carrier. Rates may be lowered significantly for the period the student is not at home. You also have the option of taking your child off of your policy when they are at school and adding them back when they are home.
Health Insurance
In most cases, a full-time student will be covered in the family’s health plan until he or she graduates from college, or remains a full-time student up to 23 years of age. However, if the parents belong to a closed-network HMO that doesn’t provide non-emergency coverage in the school’s area, a separate policy for the student should be considered. Most colleges have a clinic on campus and may offer supplemental insurance as well.