Insuring Your Child’s Property While Away at School

Sending a child off to college is a big day for a family, one that shouldn’t be ruined by concerns about whether the valuable items the child is taking to school are insured.

When sending your college-age child off to school, he or she usually takes along a computer, television, stereo, DVD player, clothing, possibly furniture and other items. Unfortunately this leaves many parents questioning whether their homeowners insurance protection will cover the items while they are out of the home.

Relax! The good news is that most homeowner’s insurance policies will provide coverage for personal property located away from the principle residence, such as with a child at college. However, there are coverage limits that parents must consider.

These limitations include:

1. Does child meet the definition of “full-time student” as defined by the school? If not the child may no longer meet the definition of “insured” under his or her parents’ homeowners insurance policy. Some homeowners policies grant insured status to students only if they are considered full-time by the school they are attending. It is important for your child to tell you when there are any changes to their enrollment status.
2. Is the child on the “seven-year plan?” Many homeowners insurance policies extend coverage to a full-time student living away from home provided he or she is under a certain age. Once that age is eclipsed, the policy will no longer consider the student “an insured,” thus expiring the policy’s duty to pay claims on his or her behalf. Check your policy to determine if there is an age limit restriction.
3. What about coverage limits? There are coverage limits for property that is located away from the insured party’s principle residence. For example, a homeowner’s policy may provide $50,000 for personal property coverage but limit that coverage for property located away from the insured’s principle residence to only 10 percent of that amount.

In addition to these limitations, there are others that should be considered by parents of a college-bound child. Certain types of property such as electronics, collectibles, high-value jewelry and other valuable items may have separate coverage limits that are significantly lower than the normal personal property limits. Review these limits with your insurance agent to determine if additional coverage is necessary.

Having adequate insurance is the best defense against a loss that could otherwise taint your child’s college years, so review your coverage today, before your son or daughter heads off to school.