Do I Need to Update My Policy If I Have a Child Going to College?

You probably don’t need to make sweeping updates to your insurance coverage to protect your college student, or your assets. But there are a few things to consider this fall.

Renter’s Insurance

College dorms can be high-traffic areas, so it’s best to leave the valuables at home. As a parent, your homeowner’s insurance likely covers your teenager’s belongings, typically up to 10% of your property coverage. (i.e., if you have $300,000 in personal property coverage on your house, your college student’s belongings are covered up to $30,000, excluding your deductible.)

Before packing your teenager up for school, it’s a good idea to inventory the computers, electronics, jewelry, clothes, sporting equipment and other items of value that are headed off to college with your teenager. Gather photos, videos, or receipts to help you obtain reimbursement in the event they are lost or stolen. (And consider “scheduling” any particularly valuable pieces of jewelry or high-end electronics separately. These insurance riders cover a specific, itemized valuable, reimbursing you to cover replacement costs in the event the item is lost or stolen. Be prepared to provide an expert estimate for these items to prove their worth before adding them to your insurance policy.)

Keep in mind that the liability coverage for your homeowners’ policy likely does not cover any injury incurred in your child’s dorm or apartment – another consideration when selecting renter’s insurance.

Auto Insurance

Is your college student taking a car to school? While insurance laws vary by state, generally, if your teenager is covered on your auto policy at home, he or she will also be covered at school, regardless of location. (Premiums may fluctuate based on location.)

If your child is attending college and not bringing a car, he or she will likely still want the ability to drive it when visiting home for the weekend. Ask your insurance agent about distant student discounts (often available for students pursing an education more than 100 miles from home) and other tweaks to your policy that can help you balance premium costs for a car that’s seldom driven with coverage for your teenager when he or she is home on break. This is also helpful for instances when your teenager may drive a friend’s car – although the car owner’s policy should provide basic coverage, this offers you and your child another layer of insurance protection.

As a rule, college students may remain on their parents’ policies if they share a home address. If your child purchased his or her own car and owns the title to it, they are responsible for the corresponding auto insurance.

Need another reason to push your teenager to study? Many insurance providers offer discounts for academic excellence. Ask your agent what the requirements are for your state.

Would you like expert help reviewing your home and auto insurance policies to make sure your college student is properly covered? The Consumers First team is here to help!

By: Nancy Hallahan