College Students and Homeowners' Insurance

No matter how often you review your homeowners' insurance policy, it is important to review it again when it is time for your child to go to college. Generally by the time children reach college age, they have collected computers, video games and other electronics to the tune of several thousand dollars, not to mention bicycles, books and clothes-most of which were probably funded by their generous parents. When your student goes to college, you need to determine whether your homeowners' insurance will cover loss of these expensive items, or whether the child will need renters' insurance.

Of course, an additional insurance policy is yet just one more expense on top of the many other costs involved in parenting a college student. However, the replacement cost of computers and other expensive treasures is far more than the cost of the monthly premium on an insurance policy.

Talk to your Agent

One of the first things you should do when you get ready to send your kid to college is to talk to the agent who handles your homeowners' insurance policy. Every insurance company and every insurance policy is different, so you need to talk to your agent to get the details of what your policy will and will not cover. He will also discuss deductibles and limits that may affect your decisions.

A common clause in homeowners' insurance policies is that they will only cover your college student's possessions while they live on campus. Although dorm life can be a bit wild, it is a somewhat controlled situation in the eyes of your insurance company. On the other hand, once your child moves off campus, they are now in a completely uncontrolled environment, so this is considered to be a greater risk. If your student will be renting a place, it is a good idea to get renters' insurance to replace the homeowners' insurance. Note: renters' insurance policies are designed for traditional families or single renters, so if your child will have a roommate (or several), every renter in the home needs a separate policy.

Take a Count

While your child is packing for college, take the time to put together an inventory of their costly possessions. Take pictures and keep receipts to facilitate the claims process in case something is stolen or ruined and you have to make a claim against your homeowners' insurance or renters' insurance.

This is also a good time to discuss the responsibility of having a renters' insurance or homeowners' insurance policy. These policies are not green lights for careless behavior! You most likely have a limit on your coverage, and renewals or future policies may be affected by a large number of claims. The purpose of these policies is not to get free stuff, but to replace their most needed possessions in the event of a loss. It is just as important to learn to use homeowners' insurance and renters' insurance as it is to learn other types of fiscal responsibility.

Although sending your child to college is a big change that brings on stress and a roller coaster of emotions, it is important to take the time to talk to your homeowners' insurance agent to get a clear picture of what your policy covers. You are likely to find that the relatively small cost of keeping your child on your homeowners' insurance policy or paying for renters' insurance is worth the peace of mind in knowing they are protected.