 | Judd Schossow is an Agent with Farm Bureau Financial Services at 219 S Ozark, Girard, KS. Judd has been an agent with Farm Bureau for 5 years, he can provide you with strategies for all stages of life: Vehicle, Homeowners, Farm, Business, Life Insurance, Annuities, and Investments. To schedule an appointment please call 620-724-4213 or email Judd.Schossow@fbfs.com |
Banking & Finance
2010-10-01 13:41:00
Insuring my college student
Question: My son is attending college this fall for the first time. Will he have coverage for his belongings under our current homeowner’s policy or will we need to take out a renter’s policy?
Answer: So you have a child going off to college. Well, there are a couple of things to keep in mind when it comes to insuring your college bound student.
They move away, and they are living either in a dorm or a place off campus. Do you need to have a renter’s policy for them? If they are still considered a resident of your household, which is, they still live in your place permanently in the summer or they come home on their breaks, they are considered a resident and they have coverage.
Usually most policies offer 10 percent of your personal property coverage that will extend to off premises. Usually that is sufficient, so they typically do not need a renter’s policy.
However, if they permanently leave your household, and they are permanently on their own, then they will likely need a renter’s insurance policy. This type of policy will cover all their personal property as well as liability protection. In fact, most college students have more equity in their belongings than they know. Take a look inside their school backpack and you’re likely to find at least one, if not all, of the following items: iPod, cell phone, digital camera and laptop. And that’s just the beginning...
The average college student owns more than $10,000 in personal belongings, from text books and furniture, to apparel and electronics. A renter’s insurance policy will help replace their possessions in the event that they are damaged or stolen.
There are two primary types of renter’s insurance policies:
Actual Cash Value (ACV):
ACV coverage pays for what your property is worth at the time of the damage. For instance, if your Laptop cost $1,000 four years ago, it will be worth significantly less today. An ACV policy covers the depreciated cost of the Laptop, not the amount that you paid for it.
Replacement Cost Coverage:
This coverage pays for the cost to replace your belongings today, not when they were purchased. There is usually a limit on how much you can receive and the premiums tend to be higher than those for ACV coverage.
College life can be stressful enough. Protect yourself against any unforeseen devastation and loss that can occur.
