Having your college-aged kids back home is meant to be a nice surprise or a fun holiday. No one expected them to have to move back in for a pandemic. Everyone will have adjustments to make this school year as college and university students learn online from the safety of their homes.
What does this mean for your insurance coverage? Here’s what you need to know.
How this move impacts your home insurance depends on how coverage changed when your child left for college in the first place. Your home insurance covers college-aged children living in the dorm up to a percentage of your policy limit, usually 10 percent. If you increased your policy limit to give them more coverage, you may be able to lower it back down to previous levels. But if your college student now owns a lot of pricey books and technology, you might want to keep your limit right where it is. Take an inventory of their possessions and the cost to replace it all and then decide if your home insurance needs to change now that they’re home.
Did your child have a renters insurance policy — or did you pay for renters insurance for them? If they’re no longer living in an apartment for college and are now back home, you can cancel that coverage. They’ll be covered under your home insurance policy while they’re living with you again. Alternatively, if you or they purchased dorm insurance instead of renters insurance, that can likely be cancelled for now, too. Talk to your independent insurance agent to find out how easy it will be to purchase coverage again once they can go back to school.
If your college student purchased their own auto insurance, they simply need to update their policy with their new home address once they come home. This may lower their premiums if they’re no longer living in an apartment complex or dorm building where parking is crowded. If your child was still on your policy, make sure your auto insurance coverage is updated with the location of their vehicle and the average miles driven. Again, this could change the premiums you owe if their vehicle is now parked in a “safer” location with less risk of damage or theft.
As long as your student is enrolled in school and under the age of 26, they can be covered by your health insurance policy. But if they enrolled in a student health plan, they need to find out what the impact of online-only school versus being on campus has on their coverage. You may need to update your health insurance policy if they’re no longer covered by a previous plan. Talk to your workplace or your independent insurance agent to find out if this qualifies as a life change that will allow you to update your health insurance policy before the next renewal.
In some cases having your college-aged child back home could lower insurance expenses. It may have minimal impact on your coverage. But it’s important to make sure you know what the impact is so you’re not surprised after an expensive accident. Contact Charlotte Insurance so we can help determine what, if any, impact this change will have on your insurance coverage.