Student Property and Liability Insurance Issues

The typical homeowners policy may provide some protection for college student’s property and personal liability exposures away from home. The student must be considered an “insured” under the terms of the policy and be a legal resident of the family household. However, there may instances where a student doesn’t meet this legal test, such as a 23-year-old graduate student living in an apartment year-round. Other policies indicate students under the age of 24 are covered only if they are enrolled in school full time. However, fluctuations in class offerings each semester, as well as work schedules, often cause students to end up carrying fewer hours than required by the school to be classified as “full-time.” Therefore, a college student might be insured one semester and not insured the next semester.

Another potential problem is the small amount of insurance that may be available to cover a loss. Virtually all homeowners policies cover personal property away from the main residence – usually 10 percent of the personal property covered inside the home. For example, if the policy provides a limit of $100,000 on personal property in the home, then only $10,000 is available to cover personal property of a college student living on campus. Also, some policies won’t pay when property is stolen while a student is away or living at home for the summer.

Something else to consider is a renter's insurance policy. Parents and college bound students should
calculate the value of the property they will have with them at college whether it is a lap top, stereo or other valuables.  You can typically get a policy for around $150-$200 that will provide $20,000 on the contents and about $300,000 in liabilty protection.

We would be happy to answer any further questions that you have may have on this issue.