I was talking with a potential client last week about his Homeowner’s Policy. He gave me the basic details of his house; square footage, finished basement, fireplace and other details that I needed to figure out how much coverage needed to be on the house.
This, by the way, is a fantastic thing to discuss with your agent to make sure you are not paying too much for your Homeowners policy.
Then he said something that I had not heard before. He mentioned that his current policy has an endorsement that provides liability coverage to his son who goes to West Chester for college.
I was unaware of this. From what I understood, all college kids needed a Renter’s policy to make sure they had A.) Liability Coverage and B.) Coverage for their personal property.
I called the Travelers Underwriter and ran it by him. “Is there an endorsement that enables us to extend Liability coverage to kids away at college?” In fact there is. Turns out it’s incredibly inexpensive too!
With Travelers, the minimum premium on a Renter’s policy is $150. The cost of this endorsement is only about $15! On top of the extension of Liability coverage, a Homeowners policy can also extend property damage coverage. Usually this is only 10% of the amount shown on your policy for Personal Property. But 10% is usually more than enough. So you really do not need a Renter’s policy for a college kid.
With Safeco Insurance you don’t even need the endorsement. The coverage automatically extends over to the college kid away at school!
Of course there may be an exception. If the landlord or apartment requires that the child have a policy in his or her name then you may have not choice. You may need to get them their own policy. Also, if your child has any high value items, like musical instruments, jewelry, computers or an expensive bike, we would recommend a separate policy, called a Personal Articles policy.
These policies are also pretty inexpensive and could end up saving you a ton of money in the long run. So although Renter’s policies are never a bad idea, especially given the low cost, they may not be necessary.
As always, consult your agent to make sure you are doing what’s right for you.
My name is Keith Laskey. My goal is to educate the everyday consumer and to help them make intelligent decisions with their insurance policies. Please contact me at my office, 610-948-4830 or Email Me for any insurance related questions or concerns. You can also visit the Ron Black Agency website or like us on Facebook! Thank you for stopping by, have a great day!