Back to School Insurance Tips
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. If you have questions, or want to go over your insurance needs, don’t hesitate to contact us!
- Coverage of personal property: Most homeowners policies provide 10 percent of Coverage C (Personal Property) for property owned by an insured that is at a residence other than the insured’s. For example, 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.
- For apartments or houses off-campus, the same coverage generally applies. Certain items, such as jewelry or expensive electronics, may require special coverage, or a “rider.” 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.
- Renters insurance: If your student’s needs can’t be met under your current policy, don’t forget renters insurance. Landlords’ policies generally only cover the structure, not the possessions of renters.
- Coverage without a car at school: If your student will continue to drive while at home on school breaks, they should continue to be listed on your 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 parents and listed on their policy will be covered if used by a listed student away at school. But you should make sure that your insurance carrier writes coverage in the college’s state and location. And note that a change to 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 the students are listed on their parents’ policy and do not have regular use of the vehicle. The coverage would likely be secondary in this case, as the carrier for the friend’s vehicle likely 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, most insurance carriers require that 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.