Going away to school—an insurance perspective

Does our homeowners policy cover our son or daughter while they are away at college?

According to the ISO Homeowners Policy (special form), a student is considered an “insured” if:

·       under the age of 24; and

·       your relative; and

·       enrolled in school full time, as defined by the school; and

·       a resident of your household before leaving to attend school.

An extension for older children pursuing higher education can often be obtained from the insurance company upon request.

How will our student’s belongings be covered?

Since children away at school are considered an “insured” on their parent’s homeowners policy, they will be covered for the property they bring to school, subject to certain policy limitations.

What are the property coverage limitations?

The policy states the limit of liability for personal property usually located at an “insured’s” residence—other than the “residence premises”—is 10% of the limit of liability for Coverage C, or $1,500, whichever is greater.

The limit of liability for Coverage C is the limit you purchased for all your personal property, which is shown on your policy. If this limit is shown as $70,000, then the limit for your children’s property at school would be $7,000.

Theft of property located at school is covered if your child has been there at any time during a specified number of days before the loss (typically, 60 or 90 days).

In addition, all the normal personal property policy limitations would apply to the collegiate away at school. These limitations are called special limits of liability and limit coverage to specified amounts for property such as money, jewelry, and tickets (e.g., airline tickets). Some insurance companies have a special limit for computers, the unauthorized use of credit cards, and fund-transfer cards as well. 

What about liability coverage?

Children away at school are covered for bodily injury or property damage that they cause to others when held legally liable for their actions. Included is the liability children have for a hazardous condition in their dorm room, since this location is automatically covered as a premises not owned by an “insured,” and where an “insured” is temporarily residing.

However, your children are not covered for liability they incur from unlawfully furnishing alcohol to others who become involved in an auto accident.

Is there any other coverage we should obtain?

Because of the special limitations and restrictions for certain kinds of property, you may want to consider purchasing scheduled coverage for specific items. Besides establishing accurate values for these items and insuring their full value without limitations, this will broaden covered causes of loss and eliminate deductibles.

Considering the widespread use of social media, your children should be covered for liability they incur due to oral or written material that libels someone or violates their right of privacy. This kind of liability is included in “personal injury” coverage, generally available as an endorsement to a homeowners policy.

Is there anything else we should do?

Have your collegiate take a careful inventory of everything they are taking with them, including the make, model, and serial numbers, where applicable.

It would be a good idea to invest in locks where appropriate (laptops) to further protect their belongings.

Don’t forget to let the insurance company know if your child is away at school more than 100 miles from home without custody of an insured vehicle, because you may be eligible for an auto insurance discount.

Lastly, have them call home often.