Having a child move out can affect your living arrangements, family dynamics, and daily routine. It can also influence your insurance needs. You might have to modify your homeowners insurance policy or take out a separate renters insurance policy for your child.
Coverage While Your Child Is at College
If your child is going to college, the specific living arrangement will determine your family’s insurance needs. If your student will reside in a dorm, your homeowners insurance policy may cover your child’s personal belongings. Coverage will most likely be limited to a percentage of your policy’s personal property coverage. Your homeowners insurance policy might also provide liability coverage while your child is living in a dorm.
Things will work differently if your student rents an off-campus apartment. In that case, your homeowners insurance coverage won’t apply. Your child will need a renters insurance policy. You might be able to save money by bundling your homeowners insurance, your child’s renters insurance, and other forms of coverage, such as auto insurance.
Coverage After Your Child Finishes School
When your child is at college, your insurance needs will change temporarily. If your child is planning to move out and you anticipate that the change will be permanent, you can modify your homeowners insurance policy and possibly save some money on your premiums.
One section of your homeowners policy provides personal property coverage. That applies to possessions belonging to everyone who lives in your house. When your child moves out, he or she will take furniture, electronics, clothes, and other belongings to a new home. That means you’ll need less personal property coverage. Reducing your coverage limit can lower your premiums.
Make Sure Your Insurance Coverage Fits Your Family’s Needs
Having a child move out can be exciting and stressful. Parents sometimes feel so overwhelmed by the changes that insurance coverage doesn’t cross their minds. A family can wind up with a gap in coverage, or parents can overpay because they have more coverage than they need.
As circumstances change, make sure that your insurance coverage is appropriate for your family. If you have questions, review your policy or call your insurance company or agent to discuss changes in your child’s living situation and learn how they will affect your coverage needs. A professional can tell you if you should modify your homeowners insurance policy or obtain a renters insurance policy for your child and help you get the right coverage at rates you can afford.
