As a parent, I remember the worry I had when my daughters finally chose which college they were going to attend. Being in the insurance business, I’ve thought about what is covered and not covered while my children were away to school, so I wanted to share what you should consider to protect your child and their belongings.
Below are five of the most important types of insurance your child may need when they are away at college.
- Health Insurance: Thanks to the Affordable Care Act, also known as Obamacare, your child is now able to stay on your health insurance plan until they are 26. Many times, though, this is impractical if they attending a school out of state and can’t find any local in-network providers. Most universities offer health insurance plans that are often cheaper than traditional coverage; and since this is a school expense, your child can use the student loans to help cover the premiums if necessary. Obamacare offers more comprehensive coverage and your child can seek coverage through the Marketplace which may be the most affordable option if they are no longer considered as a dependent on your tax form. Through the Marketplace your child could receive subsidized coverage based on their income.
- Identity Theft Insurance: College students are extremely susceptible to identity theft crimes. According to a report from Javelin Strategy and Research found that 22 percent of students in 2014 (latest data available) were notified that they had been a victim of identity-theft fraud after they were denied credit or contacted by a debt collector. College students are a popular target with identity thieves due to how they easily they share personal data through social media, not using effective passwords and unlikely to shred personal documents. While it is important for college students to learn to create effective passwords and shred documents purchasing an identity theft insurance plan can also be an effective way to safeguard against financial loss.
- Car Insurance: If you are sending your dependent child to college with a car, they should be able to remain on your existing family auto policy. If your child is going out of state, it is important that you let your insurance company know. If your child is not covered on your family policy, he or she will need to purchase his or her own car insurance policy. Rates are often higher for people under the age of 25, they may be eligible for a good student discount for maintaining at least a B average. Make sure your student knows this to keep the cost down.
- Renters Insurance: Most children live on campus their first year away. Their possessions would still be covered under your family’s home insurance policy, but it is important to notify your agent about this change. The limit for off-premises items is about ten percent of your total insured value, so in many cases it will only provide several thousand dollars of coverage. If your child in moving into an off-campus housing that is not operated by the school, it is important to purchase a separate renters insurance policy, as your child’s belongings will not be covered by your home insurance policy. A renters policy typically cost about $20 to $30 a month. Having a renters policy will protect your child’s valuables like laptops, TVs and other electronics, this kind of policy offer up to $100,000 in coverage for items damaged as well as personal liability.
- Electronics Insurance: Most electronic items will be covered under your family’s home insurance policy for a student living in a dorm or under a renters policy for living off-campus, it may still make sense to purchase an electronic insurance policy. This is because the deductible for home and renters policies are often so high that it is not worth filing a claim. An example would be having a smartphone worth $400 and your homeowners deductible is $500, you would not be able to get a reimbursement for your insurance company. Purchasing a protection plan for your gadgets, you can insure them against theft, damage or loss, generally with no or a very minimal deductible. Plans like these generally provide protection against a wider variety of problems than typical homeowners and renters insurance policies.
We know having a child go off to college is a roller coaster. So many little things to think about and not to mention the emotions everyone goes through. The R.C. Keller & Company team specializes in family protection plans. Since 1910, our family-oriented agency has helped many families get prepared for these changes. We not only make sure you get the absolute best protection, but we also find all the discounts you deserve. Call us today for a free review of your child’s insurance needs.