Do your homework to make sure your college-bound child is covered
As young adults head off to college, make sure they have adequate insurance coverage.
Thousands of property crimes take place on college and university campuses each year. Is your college-bound child adequately insured should his or her place become the next target?
Homeowners insurance generally provides personal property coverage for a student who lives in a dormitory or other university-owned housing. The coverage is typically 10 percent of what the parents have. If the parents’ possessions are insured for $100,000, the student’s are covered for $10,000.
If your child lives off campus, however, your homeowners policy may not cover them anymore. The key question becomes: Is the child still a resident of your household?
A multitude of factors determine residency. If the student returns home for the summer and is listed as a dependent on your income taxes, he or she is still regarded as a resident of the household. In that situation, the student would still be covered under your homeowners policy.
That’s not the case if the student lives at the apartment year-round and lists it as his or her permanent address. In that situation, the student has established his or her own residence and your homeowners insurance no longer applies. The student needs to purchase a separate renters policy for protection.
A renters policy will not only cover your college student’s possessions, it will also provide liability protection should someone be injured while on the premises.
Renters insurance costs about $100-$150 per year for $15,000 in coverage. That’s pretty affordable compared to the cost of replacing personal computers, stereo equipment and other big-ticket items that college students now take to school.
College is an ideal opportunity to teach your children the value of insurance. Sit down with them and your insurance agent to make sure their needs are covered.
About American Family Insurance
Madison, Wisconsin-based American Family Insurance group, celebrating its 90th anniversary in 2017, is the nation's 13th-largest property/casualty insurance group and ranks No. 315 on the Fortune 500 list. The company sells American Family-brand products, including auto, homeowners, life, business and farm/ranch insurance, primarily through its exclusive agents in 19 states. American Family affiliates (The General and Homesite) also provide options for consumers who want to manage their insurance matters directly over the Internet or by phone. Web www.amfam.com; Facebook www.facebook.com/amfam; Twitter www.twitter.com/amfam.