College students need crash course on insurance
All across Florida, college students are settling in for another school year – and they bring lots of stuff with them. Hopefully, they have already learned the important lesson of having all that stuff properly insured.There’s nothing quite like lugging box after box of belongings into a new dorm or apartment to remind you about how much you own. But what if something happened to all that stuff? With proper insurance, it could be replaced.
Many homeowner or renters policies held by parents provide financial protection for a college student’s personal possessions while they are living on a college campus. And, the possessions are covered for the same disasters, such as fire, theft, vandalism and natural disasters like hurricanes and tornadoes. Some may limit the amount of coverage, typically to about 10 percent of the amount of the parents’ coverage for personal belongings. That means that if the primary residence has a limit of $100,000 for personal belongings, the coverage for items in the dorm room would be limited to $10,000.
College students who live off campus may not be covered under their parents’ homeowners or renters policy. They may need to purchase their own renters insurance policy.
Does the kid have a car on campus? Make sure the insurance company knows. In some cases, the cost of auto insurance may drop, primarily when the car is no longer in a big city but in a smaller college town. A little Insurance 101 can help to make some of life’s lessons easy to learn.