Sending children off to college can leave more than an empty nest. Gaps in insurance coverage can develop when students live away from home. As the fall semester approaches, we want to share what insurance repercussions parents should consider.
As more and more college students take expensive electronics and their own cars away to school, it’s important to understand how it affects your family’s insurance protection.
Insurance coverage for personal belongings could be contingent upon where a college student resides. For those living in a dorm, their parents’ homeowners’ policy most likely offers limited coverage – typically 10 percent of the policy’s personal property limit.
If your child is taking along high-priced electronics or other valuables to their dorm, it’s worth looking into your policy limit.
However, a homeowners’ policy may not cover personal belongings for college students who live in off-campus housing. A renter’s policy may be necessary to cover their belongings in the event that they are damaged, destroyed or stolen.
Auto insurance also is impacted by residence. Parents whose children do not take a car away to college may be entitled to a premium discount and still be able to retain coverage for them during semester breaks. For children who take their car to school, premiums could increase or decrease, depending on the college’s location. Regardless, maintaining a certain grade point average may trigger a good-student discount on the premium.
It’s important to pick up the phone and inform our agency if your children go away to college. We can help you to understand what your policy limits are and what scenarios could trigger gaps or even premium discounts.