It’s that time of year again when parents are packing up the minivans to move their college-bound kids to college. Before you say your goodbyes and enjoy some peace and quiet at home, it’s important to make sure your insurance policies are looking after your kids while they are away.
Homeowner’s Insurance Versus Renter’s Insurance
Many, but not all, homeowner’s insurance policies will cover your child’s property if they are living on campus. It is important to ask your insurance professional whether your policy will provide coverage or not. The majority of policies will provide protection up to 10% of the total property coverage, meaning if your homeowner’s policy covers $100,000 in property, it may cover up to $10,000 of your child’s property while he or she is living on campus. However, a lot of policies do not cover some high-ticket items, such as expensive jewelry and some electronics. For these items, you may require an addition to your policy called a “rider.”
If your child is living off-campus, he or she will not be covered by your homeowner’s policy. Renter’s insurance can be purchased at a very reasonable price and can cover your child’s property in the event of fire, theft, and a myriad of other unexpected circumstances. It’s important to note that each roommate should purchase his or her own policy, since roommate’s property will not be covered by your child’s policy.
Depending on whether your child is bringing a vehicle with him to college or not, the school year brings various changes to your auto insurance policy.
If children are not bringing a vehicle to college with them but will drive your vehicle during visits home, they should remain on your policy. However, some auto insurance providers have distant-student discounts for students who attend a college more than 100 miles away. Also, to ensure your college-bound child is protected when borrowing a friend’s vehicle, it is important to consult with your insurance agent about your best option.
For students who will have a vehicle on campus, it is essential to understand whether your insurance policy will cover your child in their specific state. Most auto insurance policies will cover your child if they are driving a named vehicle while living out-of-state at college. However, you should make sure you understand your policy’s restrictions thoroughly.
Preparing Your Insurance Policies For College
It is common to purchase an insurance policy, and then never think about it again. However, as your family’s lifestyle changes, your insurance policies should, too. Let your BenefitSource insurance professional help you prepare your insurance policies for college. We specialize in evaluating your individual needs and any changes that need to happen to ensure you have the right amount of coverage at the best price for your college-bound child. Call us directly at (877) 215-5431 or email us to set up your appointment.
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