FOR RELEASE ON:  August 9, 2000
FOR MORE INFORMATION:  Mitch Wilson/Dan Kelso: 614-228-1593/
After hours call Mitch at 614-868-0575

HAVE A COLLEGE-BOUND STUDENT?  DON'T FORGET TO CHECK INSURANCE COVERAGE

COLUMBUS-As summer winds down, college-age students and their families prepare for migration to campuses across the country.  According to the Independent Insurance Agents of America (IIAA), some 8.5 million households in the U.S. have at least one full-time college student.  While more than half of those attending college live away from home, about 70 percent have cars on campus.  Based on 1998 statistics from the FBI, campuses are not immune to crime.  In 1998, 93,410 property crimes were reported on college campuses, with 4,784 occurring on Ohio campuses.  These statistics do not include the thousands of private colleges throughout the country and those in the Buckeye state. (Click here for a summary by Ohio college campus)

With these statistics in mind, the Ohio Insurance Institute (OII) suggests an insurance checkup to make sure that campus-bound students are properly insured.  And there might be added incentive for parents-a possible reduction in your auto insurance premiums.

Depending on whether the student lives on or off-campus could make a difference as to whether or not additional coverage is needed.

"If your college student lives in a dormitory and is still considered a dependent, the family's homeowners insurance policy likely provides coverage for possessions taken to school," said Daniel J. Kelso, OII president.  However, depending on what your student takes, you might be limited on how much coverage actually applies.

"Typically, insurers limit coverage to 10 percent based on the personal property limits under the family's homeowners insurance policy," Kelso said, adding that coverage would typically be in the $2,500 to $10,000 range.  "Whether this is enough protection depends on the policy's limits and what is actually taken to college."

Many college students take high ticket items along with them.  This includes stereo equipment, computers, bikes and televisions, along with clothing and other personal items.  Because of this, the Institute recommends taking an inventory of such items before heading to campus.  This includes taking pictures or a video, recording model and serial numbers, and storing receipts as additional documentation.  The student's drivers license number and state should also be etched on valuables for identification purposes.  Law enforcement can track down the owner of stolen equipment more easily when such information is engraved on personal property.

"Based on the inventory, you and your insurance company or agent can make proper coverage decisions before a loss occurs," said Kelso.

According to a 1997 IIAA survey of 4,000 college students and their parents, only 17.5% of college students living off-campus had renters insurance.  So, if off-campus housing is the student's destination, OII suggests a review of the family's homeowners insurance policy to see if coverage applies.  Some companies consider a college apartment an extension of the family's home, while others consider it a separate residence which may require renters insurance for adequate protection.

"Renters insurance not only covers your college student's possessions but more importantly provides liability protection should someone be injured while on premises," Kelso said.  This means if the pizza delivery person slips on a step or a friend trips on an extension cord and breaks an arm during an all-night study marathon, the policyholder is protected up to the liability limits of the renters policy.

For students living off-campus with roommates, separate renters insurance policies are strongly suggested.

"Some parents are under the misconception that renters insurance is expensive," said Kelso.  "It's really quite affordable, typically running between $100 to $125 a year for $15,000 in coverage.  This is especially true if you compare the premium to the cost of replacing stolen items or being sued by an injured party."

The OII also recommends checking your homeowners insurance policy for coverage extending to personal computers.  These may be subject to the 10 percent off-premises coverage and losses are limited to those stated in the policy.  There may be exclusions or limited coverage for software and files that are lost or damaged.  Consider scheduling computer equipment, especially laptops, on the family's homeowners insurance policy.  By scheduling these items, expanded protection is provided at a minimal cost.

On the up side a family may be eligible for a reduction in auto insurance premiums if your college-bound student is heading to a campus at least 100 miles from home and is not taking an insured vehicle.  Even if the student takes an insured vehicle to school, if it's in a smaller town you'll likely see an auto insurance premium reduction.

"An insurance review prior to sending off your college-bound student should be part of the preparation checklist," Kelso said.  "In the long-run, you could be saving yourself a few dollars and a lot of future headaches."

The OII is a trade and public information association representing insurance companies and agent groups for the property/casualty insurance industry. Its primary objective is to help Ohioans achieve a better understanding of insurance and safety issues.

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1998 REPORTED PROPERTY CRIME OFFENSES TO OHIO UNIVERSITIES AND COLLEGES

* Burglary:  Unlawful entry to a property to commit a felony or theft.
**Larceny-Theft:  Unlawful taking, carrying, leading or riding away of property from the possession of another.  Crimes include shoplifting, pick-pocketing, purse-snatching, theft from vehicles, bike thefts, etc. No use of force, violence or fraud occurs.
***Total of burglaries, larceny-theft and vehicle thefts.

Not included are 21 reported cases of robbery at the colleges noted above. Robbery is considered a "violent crime," instead of a "property crime," since the theft or attempted theft includes force, threat of force or violence.

Source:  1998 FBI Uniform Crime Reports