FOR RELEASE ON:  August 9, 1999
FOR MORE INFORMATION: Mary Bonelli/Mitch Wilson: 614-228-1593
Ted Kinney, Ohio PIA:614-239-1387

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, 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, 60 percent of which are owned by the student. And based on 1997 statistics from the FBI, campuses are not immune to crime. In 1997, 101,525 property crimes were reported on college campuses, with 4,841 occurring on Ohio campuses.

With these statistics in mind, the Ohio Insurance Institute (OII) suggests an insurance review to make sure that campus-bound students are properly insured. And there might be added incentive for parents–a 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 will likely provide 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. Such items include stereo equipment, computers, bikes and televisions. 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.

If off-campus housing is the student’s destination, the OII suggests a review of the family’s homeowners insurance policy exclusions or a call to your insurer. 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 affordable, typically running between $100 and $150 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. A separate computer policy or an endorsement to the family's homeowners insurance policy should be considered for adequate protection 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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