Will Your Homeowners Policy Insure Stuff at School?
As parents prepare to send kids off to college, here’s one thing to think about: how to insure the belongings students are taking with them.
A homeowners insurance policy will generally cover your child’s things if he or she is living on campus. But the coverage for his or her belongings may be limited to 10% of your total possessions coverage, which varies by insurer. If your child will live off campus, coverage could be more limited.
If the 10% rule applies and you have $50,000 of personal-possessions coverage, only $5,000 is covered off-site.
If the student has an expensive computer and other equipment or a musical instrument, consider looking into floaters, or add-ons, to your policy. These usually cover specified items, and costs vary based on the value of those items. Such floaters can apply to on-campus or off-campus housing, depending on the policy.
Jeanne Salvatore, a senior vice president at the Insurance Information Institute, says insurers Travelers and State Farm offer floaters for musical instruments or sports equipment. National Student Services and Safeware have policies for technology, she says. Chubb offers a yearly policy for students traveling abroad.
For students living in an off-campus house or apartment, you also may want to consider getting separate renters insurance, which typically costs $100 to $300 annually, Ms. Salvatore says.
Wall Street Journal, August 28,2011
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