Do your homework
Monday, August 17, 2009
We get calls every year from parents regarding the personal property of their children away at college. More than 35,000 property crimes take place on college and university campuses each year, according to the U.S. Department of Education.
With that kind of number it is important to know your college-bound child is adequately insured should his or her place become the next target.
American Family 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 dependant 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.
F Mike Alpers has been an agent for American Family Insurance since 1990. His office is located at 722 W. Sixth Ave. in Emporia. Contact him at 342-0562, toll free at 888-389-0562 or by e-mail at malpers@amfam.com