Note: If you are not preparing to send a child to college, please pass this on to someone you know who is sending their child to college.
The days when children just took a pen, ruler and protractor in a pencil case, plus maybe some lunch money, to school are long gone. These days they carry a small fortune in electronic equipment, wear more expensive clothes and use designer-label sportswear for gym sessions. That means they’re more vulnerable to loss and you’re more likely to be out of pocket when things get lost, damaged or stolen.
So, does your Homeowner’s insurance cover you for this risk? And what about equipment that is loaned to them?
Generally, as long as your child is a full time student, was a resident of your house before moving to college, and is under age 24 there is some coverage for the students “stuff” while they are away at school. However, that coverage is generally limited to 10% of your contents (Coverage C) on your homeowner’s policy. For example, if the contents limit on your policy is $140,000, your child would have $14,000 of coverage for the “stuff” in his dorm room. There are limitations on certain items including computers, jewelry, musical instruments and collectibles.
Also, it’s important to check your policy to see which items are covered and whether there are any exceptions, exclusions or limitations. Not all homeowner’s policies are the same. If you need help, please contact us.
Consider a Renter’s policy for your student. This may not be necessary, but it might be a good idea. Why? If your student has a claim at school under your homeowner’s policy you may lose your “loss free” credit and your homeowner’s premium may be surcharged. This could end up costing you much more as a renter’s policy may only cost you $150 per year.
Is your child taking a car to college? How will that affect you and your car insurance rates?
Check out our website for more information as you prepare to send your child to college.
Call us today at 215-885-2200 to review your coverage with us.
