Insurance Coverage for College Bound Children
Insurance coverage is an important, yet overlooked issue facing college students. How do you know if your college student is appropriately covered? Ask yourself the following:
Are my student's personal possessions covered under my homeowner's insurance?
It depends. Not all homeowners policies are the same. Most will provide some coverage. Most policies have limitations on certain property. The limit for property away from the principle residence is usually 10% of the personal property limit on the parent’s policy. Most accidental damage is not covered. In most cases, the student’s personal property is not covered if the student is renting an off-campus apartment or house. You need to contact your insurance agent to see what coverage is available for your student.
If my student is driving a friend’s car and gets into an accident, is he covered?
If your student lives away from home and away from the family cars, you may save on your auto insurance. However, you should not drop your son or daughter from your auto insurance all together - if your student gets into an accident with a friend's car, he or she will not be covered. Conversely, if your student takes his or her car to school, your rates could go up or down, depending on where the school is located. You need to contact your insurance agent to see what coverage is available for your student and what kind of premium adjustments to expect.
Does my student have health insurance coverage?
Check with your own medical policy to see what coverage will be provided for your child. Most plans will cover dependent full-time students up to a certain age, i.e. (24, 25, or even 26). You must check with your health insurer. If your student is out of state and you have a HMO or PPO, be sure that you review your plan's approved list of physicians and hospitals in the area where your child's college is located. Using an out-of-network physician or hospital may mean that the costs will not be covered. Also check with your student’s college or university to see if coverage is available. It is generally offered at a nominal rate.