College-Bound Child: Will Your Insurance Still Cover Them?

As August approaches its time to let the truth hit you, your son or daughter just graduated high school and now they’re about to leave home and enter college in little over a month. That’s a scary reality and I’m sure the first thought that enters your mind is where did the time go? It seems like just yesterday you were watching them take their first step, and now they’re fleeing the nest and going off on their own. They grow up too fast, but all you can do is watch and keep them safe!

However, while you can’t physically protect your child anymore once they go away to school, you can prevent a financial hardship for both them and yourself by ensuring that they are fully covered in all areas of insurance. Continue reading to learn about what you need to check up on insurance wise once your child makes the leap to becoming a full-fledged college student!

Property Insurance

While home insurance may cover the property that your child has in their dorm, it may not cover it in full. If your child has an expensive computer or other costly electronics, then they might be smart to consider purchasing an endorsement for these items or a special personal property floater. There are also stand-alone insurance policies for computers and cell phones. According to Insure.com, homeowner’s policy coverages for college students work this way:

“Some home insurance policies limit the amount of insurance for off-premises belongings to 10 percent of the total amount of coverage for personal possessions. This means that if the parents have $70,000 worth of insurance for their belongings, only $7,000 is applicable to possessions in the dorm.”

However, your child must be a full-time student, live on-campus and be your dependent for your home insurance policy to apply to their possessions. If a child lives off-campus, then they should look into purchasing renters insurance. A renters insurance policy is very affordable and would cover your student’s personal property (in case of fire, theft, etc.) along with providing them with liability coverage.

Auto Insurance

Say you currently live in North Carolina and therefore you and your family are covered by North Carolina auto insurance. If your child chooses to go out-of-state for college, then this could impact your auto insurance premium. As most children are, your son or daughter is most likely listed under your policy. Therefore, if they take the family car to college with them then you must notify your insurance company that the car will not be garaged in a different location. This could result in either a higher or lower insurance premium.

Another factor to consider is if your child holds the title of the car under their name, then they must be removed from your policy and get their own insurance. While this will likely lower your insurance premium, it could result as a financial burden for your child as young drivers are labeled “high risk” and therefore receive more expensive insurance rates.

To learn more about North Carolina insurance visit our website, or for more information on the coverage that your college-bound child needs call Spivey Insurance Group today at 877-318-5951!

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