If you have read any of my recent blogs, you know I just shipped my oldest daughter off to Ohio to college. Many of you have done the same thing, and many of you may be quickly approaching this reality. As you may understand, it’s a very bittersweet time in a parent’s life; we are happy for their success but we also miss them.
After shipping off my daughter’s fifteen pairs of shoes, I realize that many of you may not understand the implications on your personal insurance of having a child away at school. Do you know how he or she is protected while away from home?
Since your young adult (I don’t think my daughter wants to be called a child anymore) is still not fully emancipated from your home, they are still considered an “insured” on your policy. That’s good from a liability standpoint, but what about that new laptop she has, or the refrigerator you just bought for him? Unlike when I went to school with a 12’ television, two pair of jeans, and my golf clubs, kids have much more valuable “stuff” in dorms and apartments.
Your personal homeowner’s policy provides a limit of 10 percent of your personal property limit because the dorm room or apartment is an "insured's residence other than the residence premises.” You need to look on your homeowner’s policy under Coverage C to find what that limit is. If your limit is $150,000 for example, your students limit will be $15,000. In the old days like with me, that was probably enough. Today, with all the high-priced technology and expensive clothes, it may not be adequate.
Factor in one last thing – do you remember college life? Your kids’ “stuff” is pretty open to theft or other bad things; much more than when they were living at home. The two scenarios could be a recipe for disaster.
I urge you to dust off your homeowners policy and/or call your agent to know how much coverage you have. Then make a realistic inventory of what your student has with them. If you’re coming up short, you should have the ability to increase that limit for just a small amount of premium.
Dan
P.S. If you have any questions about this or any other parts of your personal insurance, check out my online store by clicking here. You can purchase a booklet called, Your Personal Insurance Survival Guide for just $10. You will learn how to best protect yourself, your property, and your family.
After shipping off my daughter’s fifteen pairs of shoes, I realize that many of you may not understand the implications on your personal insurance of having a child away at school. Do you know how he or she is protected while away from home?
Since your young adult (I don’t think my daughter wants to be called a child anymore) is still not fully emancipated from your home, they are still considered an “insured” on your policy. That’s good from a liability standpoint, but what about that new laptop she has, or the refrigerator you just bought for him? Unlike when I went to school with a 12’ television, two pair of jeans, and my golf clubs, kids have much more valuable “stuff” in dorms and apartments.
Your personal homeowner’s policy provides a limit of 10 percent of your personal property limit because the dorm room or apartment is an "insured's residence other than the residence premises.” You need to look on your homeowner’s policy under Coverage C to find what that limit is. If your limit is $150,000 for example, your students limit will be $15,000. In the old days like with me, that was probably enough. Today, with all the high-priced technology and expensive clothes, it may not be adequate.
Factor in one last thing – do you remember college life? Your kids’ “stuff” is pretty open to theft or other bad things; much more than when they were living at home. The two scenarios could be a recipe for disaster.
I urge you to dust off your homeowners policy and/or call your agent to know how much coverage you have. Then make a realistic inventory of what your student has with them. If you’re coming up short, you should have the ability to increase that limit for just a small amount of premium.
Dan
P.S. If you have any questions about this or any other parts of your personal insurance, check out my online store by clicking here. You can purchase a booklet called, Your Personal Insurance Survival Guide for just $10. You will learn how to best protect yourself, your property, and your family.
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