Insurance Issues Student Property and Liability

<

The typical homeowners policy covering the family home may provide some protection for personal property taken to college by the student as well as personal liability exposures arising out of the student’s residence and personal activities. There are some potential problems, however, with depending on the family homeowners policy to provide this protection.

In the first place, the student’s property and liability exposures away from the family home are covered only if the student is considered an “insured” under the terms of the policy. Homeowners policies sold by some insurers cover children as long as they are legally considered residents of the family household. There may be borderline cases that don’t meet this legal test, such as a 23-year-old graduate student living in an apartment year-round.

Coverage under homeowners policies sold by other insurers may be more clear in their intent by specifically covering students under the age of 24 while they are enrolled in school full time (as defined by the school). This approach, while more clear, presents several potential problems. As every parent of college kids knows, fluctuations in class offerings each semester, as well as work schedules, often cause students to end up carrying fewer hours than required by the school to be classified as “full-time.” Which means, in essence, that a kid in college might be an “insured” one semester, and not an “insured” next semester.

Another potential problem is the small amount of insurance that may be available to cover a loss. Virtually all homeowners policies cover personal property away from the main residence with a lower limit than that which applies to personal property in the home – usually only 10 percent. For example, if the policy provides a limit of $100,000 on personal property in the home, then only $10,000 is available to cover personal property while located at the student’s college residence. And some policies won’t pay when property is stolen from a student’s residence except while the student is living there. That could be a problem if the student leaves property there when he or she comes home for the summer.

All of these problems can be solved by purchasing a renters insurance policy for the student. Contrary to popular belief, this insurance can be very affordable. A typical policy, providing $15,000 in personal property coverage and about $100,000 in liability protection, costs about $100 - $150 a year.

European Health Insurance Card or EHIC when travelling in Europe

<

Travelling in Europe? Make sure you take the new EHIC or European Health Insurance Card. This card has replaced the old E111 as of January 2006. It entitles you to free or reduced medical care in most of Europe (EEA) and Switzerland. Insurers may waive excesses for medical treatment if you use your EHIC to get treatment. Keep the card in a safe place as it is permanent and does not go out of date. The EHIC card is available free to all residents of the UK. You can apply for it either online (https://www.ehic.org.uk), by phone (0845 606 2030) or simply pick up an application form from the Post Office. You need to apply three weeks before travel to Europe. An EHIC is not a substitute for travel insurance, and should not be considered as a cheap alternative. It provides cover in an emergency, and is only valid in EEA countries. For complete coverage you should always take out your own travel insurance policy as well, and tell the insurer you are taking an EHIC with you.

Insurance Issues for Student Auto

<

While there are obvious exposures when a child takes a car to college, there can be a dangerous coverage gap for students who don't have a car at college.
It goes without saying that just because a kid does not take a car with them to college does not mean they won’t be driving or occupying a car. Whether they borrow a friend’s car or just ride around as a passenger, coverage for the student on the family auto insurance policy depends once again on that pesky issue of “residency.” As mentioned above, that issue is a legal one and could be a problem for older students who don’t intend to return to the family home. In that case, the student may need an auto policy in his or her own name covering just the exposures related to driving or riding in someone else’s car – a so-called Named Non-Owner Auto Policy.

If the student takes a family car to college, the primary issue to discuss with your agent is how the auto will be rated. Will the auto be rated in the territory where the college town in located (could be higher or lower than the home territory? Does the student qualify for a Good Student or Driver Training Discount?