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Does My College Student Need Insurance?

With computers, TVs, printers, PDAs and MP3 players being shipped off to school, it is more important than ever that students and their parents purchase the appropriate insurance protection. Theft can be a major concern on college campuses.

For students who live in a dorm, most personal possessions are covered under their parents’ homeowners or renters insurance policies. However, some home insurance policies may limit the amount of insurance for off-premises belongings to 10 percent of the total amount of coverage for personal possessions. This means that if the parents have $70,000 worth of insurance for their belongings, only $7,000 would be applicable to possessions in the dorm. Also, most home insurance deductibles are 1% of the dwelling amount, which means that a $300,000 house will have a $3000 deductible apply before any coverage kicks in.

Expensive computer and electronic equipment and items such as jewelry may also be subject to coverage limits under a standard homeowners policy. If the limits are too low, parents may consider buying a special personal property floater or an endorsement for these items.

Students and/or their parents may want to consider purchasing a stand-alone renters insurance policy. This can be an economical way to provide additional insurance coverage for a variety of disasters. Most polices are only $120 per year and can cover up to $25,000 in coverage for personal belongings with only a $250 deductible.

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