Quick Quiz

When preparing to send you child to college be sure to review:
 
    1. Their college essay
    2. Your bank account
    3. Their insurance coverage

If you selected insurance, you go to the head of the class. When your child moves from home to college there are a number of insurance questions to consider, especially if he or she is planning to live off–campus. Remember, not all insurance polices have the same terms and conditions. Consult with us, your Trusted Choice^SM agent, to determine the limits and types of coverage that apply to your family’s lifestyle.

Home Sweet Dorm

Insurance companies consider college students to be residents of their parents’ home, temporarily residing elsewhere. They also consider your dorm-room contents to be “personal property, located off premises”.

Most homeowners/renters policies limit coverage up to 10 percent of personal property, off premises. If you have $90,000 of contents coverage at home, you will have $7,500 for an off premises dorm room. You will need to decide if that’s enough to repair or replace all electronics and other items likely to fill your trunk, back seat, and roof rack in the fall. If it’s not, you might consider purchasing a separate renters policy or property policy for the dorm room.

Moving On Up

Nearly one-fifth of college students rent off-campus apartments. Most insurance companies consider these apartments to be a permanent residence. Therefore, the apartment will not be covered under the parents’ homeowners/renters policy for contents or liability.

Generally, the person who signs the lease is held liable (and may be sued) if someone is injured on their leased premises or by their property. A roommate or parent may also be sued, whether they’ve signed the lease or not, if the injured party thinks the roommate or parents might be responsible for the claim.

Regardless of who signed the lease, when your child is living off-campus they should obtain their own renters policy. Many insurance companies will not insure multiple names, or unrelated names, on a single policy. However, if you, as a parent signed the lease, you and the student should be named as insureds on the policy.

The annual premium for renters insurance is very reasonable, usually less than $250 a year for about $15,000 worth of contents.

Up and Away

Studying abroad can provide a host of insurance issues. For example, an insurance company can suspend theft insurance at a student’s domestic residence if he/she has been studying abroad for more than 45 days. Consult with us, your Trusted Choice^SM agent, to make sure your child is covered in at least the following major areas:

Theft of personal property
 
Trip cancellation/interruption
 
Emergency medical evacuation and/or repatriation coverage
 
Health and/or hospitalization insurance

Hot wheels

Few colleges allow freshman living on campus to bring their cars. But 70 percent of the rest of the students have them. Things to consider if you child has a car:

Leave the car at home:
 
    You might be eligible for a reduced rate if the car is titled in the student’s name, no one
    else will be driving it, and the student will reside more than 100 miles away from the car.
 
Take the car to college and:
 
    Notify your insurance company that the car will be garaged in another location. Premiums
        can be affected positively or adversely by a location change.
 
    State laws vary. For instance if your child goes from a “straight-liability” to a “no-fault” state,
        their liability coverage may not be adequate. Increasing or decreasing policy coverages
        will impact their premium accordingly.
 
    Consider letting your child assume the title to the car if they are 18 years or older. As the
        titleholder they must get their own auto policy. This will decrease your liability exposure.
 
    Discourage your child from allowing others to drive the car. Regardless of who may be
        using the car and for what purpose, your child is still responsible for the car and what
        is done with it.

Out Of Sight, Out Of Network

Health insurance coverage is complex, at best. Imagine the potential difficulties for your child when they’re away from home. Problems can surface without warning, so it’s a good idea to familiarize your child with the coverages and emergency provisions of your plan and policy.

Mistakes in this area can be extremely costly and plans vary widely, so check with your health-plan administrator in advance to minimize surprises.

Here are some of the major issues to resolve before your child leaves for school:

Age cutoff—Full-time students between the ages of 18-23 can usually be covered
    under their parents’ health plan. Some plans have younger age cutoffs. Most
    continued require proof of enrollment from the school in order to keep coverage
    in force.
 
Full-time or part-time—The definition of full-time or part-time student can vary
    between colleges and health plans. You will need a signed document from
    registrar for your the enrollment officer or insurance carrier to demonstrate
    full-time status.
 
In network—If your health plan (HMO) has a physicians’ network where your child is
    going to college you will need a referral from your local physician.
 
No physicians’ network—Your plan may offer an indemnity option where you will
    pay 80 percent of all medical bills and the insurance company will pay 20
    percent. Find out before your child leaves for school.
 
College health plans—Most colleges offer some type of limited, campus-based,
    infirmary or emergency health care. Ask the registrar or student health services
    director for details.
 
Ineligible—Your child is no longer eligible on your plan? Many colleges and
    insurance companies offer affordable, extremely limited health insurance
    plans for individuals. If the student is working while attending school, check
    with their employer to see if any health insurance benefits may be available.

Guarantee Your Child's Education

Experts recommend obtaining or increasing your existing life insurance to cover the total cost of your child’s tuition. When estimating that cost you will want to include: tuition, room and board, transportation, books, and supplies.

Date Posted to Site:   May 2003