You nursed him through whooping cough, cheered
at his soccer games, and cried when he graduated. Now he is off to college even though you may
not be ready.
There are so many details that need to be
addressed, including insurance. Is there
coverage for his laptop and x-box? Will
he be covered if he drives his roommate’s uninsured car? What if he burns the dorm down with a
chemistry project? Will your insurance
cover him when he is away at school?
·
The Need
In addition to property
coverage, the student away at school needs liability insurance to cover two
basic exposures:
o Non-owned auto
o Personal activities
Although the student has no
assets, he does have a promising future.
A judgment handed down today could hang over his head for the rest of
his life
·
The Parent’s Policies
If the student gets sued for
bodily injury or property damage, his parent’s insurance may apply. The policies provide coverage as long as the
student is considered a resident of the parent’s household at the time of
loss. What qualifies a person to be
considered a resident of the household is not defined in the insurance policy;
the insurance company will make that determination when there is a claim. This issue has been the focus of numerous
court cases; the findings of the court vary from one jurisdiction to another
·
Separate Policies
Those families who feel
uncomfortable with this uncertainty, can purchase insurance in the student’s
name. A renter’s policy will provide
both property coverage and liability for personal activities. If the student has an auto policy in his own
name, that policy will usually provide liability for driving non-owned
autos. Of course, the additional cost of
these policies is always a consideration.
Your insurance agent will be able to advise how
your insurance applies to the student away from home and the coverage options
that are available. Then you can make a
decision on the steps to take to protect your student’s future.
