Does your policy extend to your college student?
Nowadays when teenagers move out of their childhood homes and onto college campuses, they often take a lot of technology with them. From laptops, tablets and smartphones to gaming and stereo systems, it's estimated that two roommates in a single dorm room move in with approximately $6,000 worth of electronics between them, and that's not taking into account other valuables.
What if your new college student forgets to lock the door or accidentally leaves belongings unattended? Theft is one of the most common crimes on college campuses, and replacement can be costly. To avoid this, look into your current homeowners or renters insurance policy to see what coverage may extend to college students.
Coverage and On-Campus Living In most cases, a parent's homeowners or renters insurance policy provides some coverage for a dependent who is enrolled full-time and living on campus. Still, it's important to note that there could be a limit to the amount of off-premises belongings one can claim. For example, some policies may cap coverage at 10 percent, so if a parent's policy has $150,000 worth of coverage for their belongings, roughly $15,000 could be used to replace possessions outside the home.
What if a child lives off campus? Once a student moves off college grounds, they're less likely to be covered by a guardian's insurance policy. In this situation, parents may consider purchasing a separate renters or dorm insurance policy for the college student or opting for specific stand-alone policies for high-cost gadgets and electronics.