College is expensive enough without finding out too late that an accident or theft isn’t covered under parents’ current policies. So, as parents get their children ready to head off to school in the fall, there’s one vital “to-do” to add to their list (other than writing that tuition check): a review of their 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.
HOMEOWNERS (may vary by state)
- Coverage of personal property: Most homeowners policies provide 10 percent of Coverage C (Personal Property) for property owned by an insured while it is at a residence other than the insured residence. That means 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.
- Certain items, such as jewelry or expensive electronics, may require special coverage, or a “rider.” For apartments or houses off-campus, the same coverage generally applies. See your state’s product guide for specifics. Of course, 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: You should speak to your clients to give specific answers and information about their coverages. Also, having parents create an inventory of the items their student is taking to school is a good idea, as is keeping photos of and receipts for the items.
AUTO (may vary by state)
- Coverage without a car at school: If the student will continue to drive while at home on school breaks, they should continue to be listed on an insured’s 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 the parent and listed on their policy will be covered if used by a listed student away at school. But insureds should make sure that their insurance carrier writes coverage in the college’s state and location. It’s important for agents to know if the insured’s child is taking a car, because 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 they are listed on their parents’ policy and do not have regular use of the vehicle. The coverage would be secondary in this case, as the carrier for the friend’s vehicle 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, 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.
MORE INFORMATION
For more information, parents should contact their insurance agent or refer to their policy for specific definitions and coverages.