Tom's Blog
It seems like summer just started, but when August arrives, the vacation plans have been executed and the only thing on the minds of many is “back to school” planning. Some of you may be planning to send your child off to college for the first time or may have a child returning to college; however, there are many facets to the planning of college life. Your checklist may include things like laptops, clothes, bedding, and books, but have you considered what type of insurance may be needed for your college student?
Criteria for Coverage
Planning for your child’s departure can be overwhelming, but it doesn’t have to be. The good news is that under your N.C. homeowners policy, your college bound child will be covered as long as your child is a resident of your household before going to college, under the age of 24, and a full-time student, however, there may be gaps in coverage for some situations, so you need to be aware of what is covered and what may fall short.
Your N.C. homeowners insurance policy extends coverage to your college student for liability, such as bodily injury or property damage. If your child injures someone or causes damage(s) to property, coverage would apply; however, there are situations that may have limitations or even exclusions. Knowing what these are will make the transition to college much easier. Talking with your local N.C. independent insurance agent should be your first step in the planning of your college student’s departure.
Below Are Some of the Focuses You Need to Address with Your N.C. Independent Insurance Agent:
Umbrella- As stated above, your liability coverage does extend to your college student; however, you may want to consider a personal umbrella policy which provides a higher level of liability protection should something catastrophic happen while your child is in college. It also provides protection above and beyond the usual coverage for things such as wrongful eviction, false arrest, libel/slander, false imprisonment, and even legal costs associated with the above.
Auto- Before your child leaves for college, contact your N.C. independent insurance agent to discuss all of the situations that will pertain to your college student such as:
- Will your child have his/her car on campus? If so, will there be other people using the car?
- How is the car titled and insured? Is the car in his/her name?
- If the car remains at home, will your child be operating the vehicle upon his/her return from college on weekends, breaks, and summer?
These are just some of the questions that need to be addressed to ensure there are no gaps in coverage regarding auto coverage.
Personal Belongings/Property- When your child is packing up all of his/her personal belongings you may be surprised at how much they actually have. If you take inventory of each item, it may add up to a pretty hefty price tag. 10% of your N.C. homeowners insurance policy extends to your dependent child for personal property in a dorm room; but would 10% cover the cost of the items if they were stolen or lost? For example, your college student may have a laptop that costs $2500 and if it was stolen or lost, would your current homeowners policy provide replacement cost for this or will you suffer a financial loss?
Keep in mind, also, that some items are subject to specific limitations and if something should happen to these items, the coverage may fall short. For a nominal fee, a personal property endorsement can be added to your homeowners policy that will outline any of the “big ticket” items and can be scheduled for a certain amount.
Renters– If your child will be living off campus in an apartment, you should purchase renters’ insurance. This will protect your child’s personal items should a covered loss happen, even if your child is studying abroad.
Don’t Wait!
College is just around the corner so don’t wait to discuss the insurance your college student may need. Contact our office TODAY at 866-869-3335 to discuss the protection you and your college student deserve.
