He's Going Away to School

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.