Although the liability limits of a homeowners’ insurance policy usually apply equally to covered college students, many insurers place a 10% cap on the possessions limit. And some policies may not have sufficient provisions to cover college kids in certain situations. Some parents will want to purchase additional coverage to ensure their child is taken care of; for example a renters’ insurance policy can be a good solution, for an average cost of between $150 and $200 annually. Be advised that if your child is living with roommates, the policy will not cover roommates’ possessions.
Another important possession to consider is the student’s vehicle. Parents should ensure their child is fully covered when going to college, keeping in mind that rates may fall or rise depending on the school’s location.
Your student’s health insurance must also be considered; many college kids are known for making poor nutritional choices, not getting enough sleep, etc. These factors, in addition to increased stress, can add up to more trips to the doctor. As a rule, student health plans offered by schools are limited, expensive, have low cap amounts and may require students to seek care only on campus. Since children are usually covered by their parents’ medical insurance, most parents opt to rely on this type of coverage. But children of parents with limited HMO plans may only be able to seek emergency treatment on campus, translating into higher bills or higher co-pay amounts.
An individual health insurance policy may be the best option for parents who have limited HBO plans; these plans are quite affordable and premiums are lower with higher deductibles.
Thought should also be given to identity theft insurance. This coverage is often limited and while it cannot prevent parents or students from becoming victims of identity theft and doesn’t cover financial losses directly, it does provide coverage for the cost of reclaiming yours or your child’s financial identity. For instance, it may cover the costs of making copies and phone calls, mailing documents, lost wages and attorney fees.
To learn more about insurance options for college students, discuss these issues with an agent.
About Amity Insurance
Amity Insurance Agency, Inc. is a full-service agency dedicated to meeting your business, professional and personal insurance needs.
Amity Insurance is licensed in most states. The agency maintains headquarters at 500 Victory Road, North Quincy 02171. For information on products or services, please visit www.amityinsurance.com or call (800) 940-4010 to schedule a free analysis of insurance needs.