Leaving the Nest for College and Homeowners Insurance

August 21, 2007 | By: Matt | Comments (0) | Posted in: Homeowners

Over the next month, 13 million young adults will make their migration to college. Leaving the sanctuary of the nest with almost $10,000 in electronics, computers, and clothing in hand, the average college freshmen becomes prey to the natural events of property loss. In fact, nearly 30,000 unsuspecting students will become victims of burglaries on college campuses this year. Soon enough, both parents and students will become distracted by the challenges of lugging overloaded boxes and homesickness; therefore, take 5 minutes now to analyze your homeowners insurance policy. Clarify the coverage your policy affords for your student, and identify new areas for saving — considering the cost of text books now.

Living on Campus: What Your Policy Covers
Dorm room living is a traditional rite-of-passage for many young adults. An environment of adolescent roommates and unlocked doors, on-campus living is a risky environment that requires the attention of your homeowners policy. Generally a student’s possessions are protected by his/her parent’s homeowners insurance polices; however, there will may be limits on some items such as stereos, computers, and bikes, so additional coverage might need to be purchased.

Lesson #1: Not a Fix-All Magic Wand
Of course, planning for this is a wonderful time to explain the magic of homeowners insurance to your young adult, as it’s not intended to be a “fix-all” savings account, but rather a financial tool that returns one’s life to an original state — should a major loss happen. Furthermore, the cost of deductibles and the future impacts of making claims can be as financially debilitating as a late payment on one of the high-interest rate credit card offers your student will be bombarded with. Side note: Teach your student the power of “NO!”

Living Off-Campus: A Bigger Challenge
On the other hand, if your student attends college by living in an off-campus arrangement, be aware they are most likely not protected by your homeowners insurance policy. A much more uncontrolled and independent environment to insurance companies, living off-campus requires a separate policy — perhaps renters insurance if applicable. Similar to a homeowners policy, you can get a quote online and discuss your needs with an experienced agent.

Before You Leave the Nest: Take an Inventory
Filing a homeowners insurance claim is the same process as figuring out exactly how much insurance coverage is needed. You have to take an inventory of all your possessions and assign a value. As your students packs boxes with computer equipment and invaluable personal effects that inspire their individuality, take the time to itemize an inventory and complement it with supporting pictures, serial numbers, and receipts if possible. Having this supporting documentation supports your efforts should you file a claim in the future, not to mention, an updated total value affords you the ability to get new pricing for your homeowners protection.

 

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