2 min read
There’s a lot to consider when sending your child off to college, and insurance coverage is often overlooked. While many students may continue to qualify for coverage under their parents’ homeowners policy, the extent of that coverage can vary depending on where they live and what personal property they bring with them to school. Students living in a dormitory may have different insurance considerations than those living in off-campus housing, and certain belongings may require additional protection.
Coverage for Students Away at School
In most cases, full-time students may still benefit from coverage extensions under their parents’ homeowners policy. Before the school year begins, it is best to review your coverage options with your trusted insurance advisor to confirm how the policy applies to your students away from home and if there are any limitations or requirements.
Protecting Personal Property on Campus
A student’s personal property may be covered under a parents’ homeowners policy, but it’s important to understand the limitations. Even when a loss is covered, the homeowner’s policy deductible would still apply. For families with higher deductibles, smaller losses such as a laptop or other property may fall entirely below the deductible. A renter policy may provide a more practical solution for a student, offering a lower deductible and coverage more suited for the losses they are more likely to experience. It’s also important to identify high-value items, such as jewelry, watches, and collectibles that require additional or scheduled coverage.
Understanding Liability Exposures
Liability is often one of the most important coverages to review because seemingly routine situations can result in significant financial consequences. Claims may involve legal expenses, medical costs, settlements, and judgements. Students living away from home may encounter new exposures through social gatherings, hosting guests, participating in activities, or simply navigating a greater level of independence.
Auto Insurance and Students Away at School
Students away at school can have implications on the family’s auto insurance too. They are often required to remain listed on the family auto policy if they have access to family vehicles when returning home during breaks. Important considerations include where a vehicle will be kept, if the student has access while away at school, and if friends or roommates will have access to it. Many insurers offer premium savings for students who maintain good grades—a nice added incentive for strong academic performance—as well as for those attending school more than 100 miles from home without a car.
Potential Coverage Gaps
As students begin living more independently, new coverage gaps can arise that families may not anticipate. Off-campus housing management may require a renters insurance policy, while studying abroad may create a need for travel insurance or other specialized coverage. Sharing details about your child’s living arrangements, travel plans, activities, and lifestyle with your insurance advisor can help identify potential gaps before they become a problem.
Additional Living Expense Protection
When a student is living away from home, one of the most overlooked benefits of having a renters policy is additional living expense coverage. If a student is displaced from their residence because of a covered loss, the costs can add up quickly. Temporary housing, meals, and other necessary expenses may continue for weeks or even months while repairs are being made. Parents often assume their homeowners policy, or the school (depending on type of housing) will take care of these expenses. But additional living expense protection may not extend to the student from the home policy, and the school may not be responsible to rehouse them. We’ve seen that in many student housing claims, the additional living expense becomes the most significant financial burden. Without the appropriate coverage in place, a student and family could be paying these unexpected costs out of pocket. We recommend exploring renters coverage as an important layer of protection.
Pre-Semester Checklist
The summer before your child leaves for school, review your homeowners, auto, and liability coverage with your insurance advisor. Discover how coverage applies to your student’s living arrangements, discuss any valuable property being taken to school, and identify potential risk exposures from lifestyle choices and activities they plan to participate in. A little planning today can help prevent surprises tomorrow. Our team at J.W. Allen has decades of experience helping families feel confident their students’ belongings are covered while away at school.