Insurance Tips for Back-to-School Time
College is expensive enough without finding out too late
that an accident or theft isn’t covered under your current policies. So, as you
get your children ready to head off to school in the fall, there’s one vital
“to-do” to add to your list (other than writing that tuition check): a review
of your insurance coverage.
It's important to keep in mind that policy language
varies from state to state, and there are never "one-size-fits-all"
situations, but below is a general guide. If you have questions, or want to go
over your insurance needs, don’t hesitate to contact us!
HOMEOWNERS (may vary by state and individual policy)
•
Coverage of personal property: Most
homeowners policies provide 10 percent of Coverage C (Personal Property) for
property owned by an insured that is at a residence other than the
insured’s. For example, if the contents
of a policyholder’s home are insured for $100,000, a student’s property up to
$10,000 would be covered if living in a dormitory – provided the damage is
caused by a covered peril and the student meets the definition of an insured.
•
For apartments or houses off-campus, the same
coverage generally applies. Certain items, such as jewelry or expensive
electronics, may require special coverage, or a “rider.” Renters insurance is strongly
recommended if a particular policy does not cover a student’s personal
property.
•
Liability coverage: There usually is an
exclusion for damage to property rented to an insured, so generally damage to a
dorm room or apartment would not be covered.
•
Ensuring adequate coverage: Contact us to get specific answers and
information about your coverages. Also, it’s a great idea to create an
inventory of the items your student is taking to school, as is keeping photos
of and receipts for the items.
•
Renters insurance: If your student’s
needs can't be met under your current policy, don't forget renters insurance.
Landlords’ policies generally only cover the structure, not the possessions of renters.
AUTO (may vary by state)
•
Coverage without a car at school: If your
student will continue to drive while at home on school breaks, they should
continue to be listed on your auto policy. If they are attending school more
than 100 miles from home, and are not taking a vehicle with them, the policy
may qualify for a distant-student discount.
•
Coverage with a car at school: In most
instances, a car registered to parents and listed on their policy will be
covered if used by a listed student away at school. But you should make sure
that your insurance carrier writes coverage in the college’s state and
location. And note that a change to the principal location of the vehicle could
result in a change in premium.
•
Driving a friend’s car at school:
Students generally would be covered while driving a friend’s car if the
students are listed on their parents’ policy and do not have regular use of the
vehicle. The coverage would likely be secondary in this case, as the carrier
for the friend’s vehicle likely would be the primary coverage.
•
Coverage discounts: In addition to the
possible distant-student discount mentioned above, students may qualify for a
good-student discount. To qualify, most insurance carriers require that a
student must be enrolled in at least four courses per term as a full-time
student at an accredited college or university and meet certain academic
qualifications. Also, drivers under the age of 21 who complete a driver
education course may be eligible for a policy discount.
Going away to school is an exciting time for both students
and their parents. Making sure you’ve got the right insurance coverage can help
you protect your assets as you invest in your child’s future. We’re happy to
discuss your coverage and options — just give us a call (715-723-5525) or stop
by!
