Is your child’s stuff covered?

It’s that time of year again when our children are off to college and staying at dorms or renting apartments.  This brings up the question of whether or not your child’s belongings are covered while they are away and what are your liability exposures as parents if you co-sign a lease.

Coverage C of your homeowner policy provides coverage for “personal property owned or used by an insured while it is anywhere in the world.”  A child in college is an insured as long as they still reside with you.  However, there is a limitation in the policy for property they take with them to school.  The homeowner policy limits the amount of coverage available to them while they are away at school to 10% of the Coverage C limit.  Still, for most students, this should be more than enough unless they are Paris Hilton.

Now lets talk about theft–probably your most common exposure.  The policy goes on to say that there is NO theft coverage for property of a student away at school UNLESS he/she has been at their school residence location within 45 days PRIOR to the loss.

The liability portion of your homeowner policy provides coverage for “any part of a premises not owned by an insured and where an insured is temporarily residing and any part of any premises occasionally rented to an insured.”  The liability portion of the policy also provides coverage for parents should they become legally liable, a condition that is usually determined by state law.

The alternative to relying on your homeowner policy is to consider purchasing an HO-4 as a last resort.

By Mary Pellegrino, VP, Bucci Insurance Group