Dunnan on Dollars Personal Finance Tips from Nancy Dunnan College Dorm Insurance
September 4, 2010 - Heading off to college is such an exciting time and there is so much to think about. Please don't let this one slip through the cracks, though. If you or someone in your family has headed off to college this month, read on. Students should have insurance coverage, given it's very likely they will be taking a computer, printer, TV, hot plate, microwave, mini-refrig, sports equipment, a musical instrument, cell phone and perhaps a Kindle. All this may total up to be worth thousands of dollars. And, that's not counting clothes, books and supplies. According to the Department of Education, on-campus thefts are on the rise. And, according to the Consumer Product Safety Commission, fires are also on the rise - most being cooking related. The parents' homeowners or renters insurance policy For students living in a dorm, most of their personal possessions are typically covered by their parents' policy. However some homeowners insurance policies limit the amount of insurance for off-premises belongings -- generally to 10% of the total amount of coverage for personal possessions. That means if parents have $60,000 worth of insurance for their belongings, only $6,000 would be applicable to possessions in their son or daughter's dorm room. Expensive computer and electronic equipment and jewelry may also be subject to coverage limits. If the limits are too low, parents should look into buying a special personal property floater (also known as an endorsement) for these items. There are also stand-alone insurance policies for computers and cell phones.
Living off campus Students who live off campus are rarely covered by their parents' homeowners policy. Therefore, they should purchase their own renters insurance. Note: We will cover that topic next week. 5 Safety Suggestions - Leave valuables at home. You don't need luxury watches, expensive jewelry and designer duds on campus. The basic idea of college is to learn something rather than parade around on a red carpet.
- Do a dorm inventory. Before leaving home, students should make a detailed inventory of all the items they are taking with them. Having an up-to-date inventory will help get insurance claims settled faster in the event of theft, fire or other types of disasters. Be sure to update the inventory every fall. (Click HERE to read last week's column on how to do an inventory that is actually effective.)
- Engrave electronics. In addition to recording serial/ID numbers, engrave computers, TVs and portable devices like iPods and Kindles with your name or other identifying information that can help police track the stolen articles.
- Lock your dorm door. And keep your keys with you. Ask that your roommates do the same. In fact, insist that they do so.
- Keep your belongings with you. That includes book bags, laptops, purses and cell phones. Don't leave them in open cubbies, on tables or chairs or in coffee shop booths.
Primary areas where thefts occur are: classrooms, the library, dining halls and public areas. A college student's car If a student's car is kept on campus, the best rate is likely to be with the parent's insurance company. Most offer multi-policy discounts. However, if the student's car is kept at home, be sure to contact your auto insurance company. Many insurers give discounts for students who are living at a school that is at least 100 miles from home. Stay Tuned: Next week: Renter's Insurance for off-campus living - Nancy Dunnan
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If you want to suggest a column topic for Nancy, drop her a line.
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