5 Insurance Considerations for Your College Student
By Elena Majorian
As the fall semester gets underway, it’s a good time for families to take a fresh look at their insurance program, especially when a child is heading off to college.
For many families, a child leaving home can create insurance considerations that aren’t always obvious. There are often changes to housing and garaging locations, landlord requirements, or purchases of new valuable personal property. Each of these situations can affect how your existing homeowners, umbrella, and auto policies respond.
Before your child heads back to campus, consider reviewing the following areas with your insurance advisor.
1. Does Your Contents Coverage Extend to Your Child’s College Residence?Many homeowners policies provide some coverage for a dependent child’s personal property while they are away at school. However, the amount and conditions of that coverage can vary significantly.
For example, a student may take a laptop, television, bicycle, clothing, furniture, jewelry, or other personal belongings to campus. Depending on the policy, coverage for property located away from the primary residence may be subject to a reduced limit or other restrictions.
It’s worth confirming:
• How much coverage applies to property kept at a dorm or other temporary residence
• Whether the coverage is based on a percentage of the contents limit or a specific dollar amount
• Whether there are special limitations for items such as jewelry, electronics, or other valuables
2. What About Liability Coverage at the Student’s New Residence?
If your child is living away from home, it’s important to understand whether the liability protection under the family’s homeowners policy extends to that new residence and under what circumstances.
Consider scenarios such as a guest being injured in the student’s apartment or the student accidentally causing damage to someone else’s property.
You will likely also want to add the location where your child lives to your umbrella policy; the umbrella policy is designed to provide an additional layer of liability protection, but its applicability can depend on who qualifies as an insured person on the homeowners policy.
A quick review can help confirm that you and your child remain appropriately protected. Do not assume that a student’s housing arrangement is automatically covered simply because they are a member of the household.
3. When Does a Separate Renters Policy Make Sense?
There are differences between a dorm room and an off-campus apartment that impact your insurance needs.
If your child is moving into an apartment or rental house, you may want to consider a separate renters policy. A renters policy can provide coverage for the student’s personal property as well as personal liability. Your insurance advisor can then discuss whether it is appropriate to add the location to your umbrella policy.
4. Are You Signing a Lease as a Guarantor?
Parents are often asked to sign a lease as a financial guarantor. While this may seem like a financial or legal consideration rather than an insurance issue, it is worth discussing with your insurance advisor.
A guarantee of a lease does not necessarily mean that the underlying obligation is something your liability policy will cover. Before signing, review the lease and any guarantor agreement and discuss the arrangement with your insurance advisor. Be sure to understand where insurance does or does not apply.
5. Auto Insurance: With or Without a Car
A student’s auto situation can change considerably once they head to college.
If your child is taking a car to school, let your insurance advisor know where the vehicle will be primarily garaged. The location where a vehicle is regularly kept can affect rating, coverage, and underwriting.
You should also consider:
• Whether the student will be driving another person’s car or a rental vehicle
• Whether the vehicle is titled or registered differently
• Whether the family’s umbrella policy requirements are still being satisfied
If your child is leaving the car at home, don’t assume you can simply remove them from the auto policy. A college student may still drive while home on breaks, borrow a friend’s vehicle, or otherwise have access to cars while away at school. Maintaining the appropriate coverage can be important for liability purposes.