News: 2006 Press Release
For Release: September 16, 2006
Media Calls Only: 415-533-2003
As Students Return to College, State Insurance Commissioner John Garamendi Urges Parents to Re-Evaluate Insurance Needs
Garamendi advises parents and college-bound students to consider updating or adding renter’s, health and auto insurance for campus living this fall
SAN DIEGO –– Whether it’s a stolen computer, an on-campus auto accident, or a huge medical bill for a late-night trip to the emergency room, California Insurance Commissioner John Garamendi is urging California’s college students and their families to avoid finding out the hard way that they are under-insured.
As California students head for college this fall, many of them – as well as their parents – could be unaware that they and their possessions may be unprotected on several fronts. Speaking with students at the Piedra del Sol Apartments on the San Diego State University campus Saturday, Insurance Commissioner John Garamendi warned them that Mom and Dad’s policies, whether auto, property or health insurance, may not apply once they leave home for campus.
“Now is the time to protect your assets and belongings,” said Commissioner Garamendi, “Taking the time to evaluate your insurance needs now could go a long way in saving you money and trouble later.”
Commissioner Garamendi wants to remind parents that now is a good time to take stock of their sons and daughters property insurance needs. ”I -pods, MP-3’s, laptops, stereos, and TVs mean that a burglary or fire would prove extremely expensive given the costs of today’s electronic gadgetry,” said Garamendi. Additionally, jewelry, watches, clothing and expensive purses can also add up to expensive losses. Check your policy carefully to see whether your student’s belongings will be covered in on-campus housing.”
If a student is under 26 years old, enrolled in classes and is living in on-campus housing, he or she may be covered under their parents’ homeowner’s or renter’s policy. But if the student is living off-campus, they likely won’t be covered. Knowing what coverage you have is an important first step.
Renters insurance is a relatively easy solution. “ It’s low cost and covers your belongings in the event of theft, or even damage from an errant dormitory or apartment fire extinguisher,“ said Commissioner Garamendi. “And in case of fire or theft, make sure that you have documented your belongings. It’s as easy as getting out your camera phone and taking pictures of everything you own.”
The premiums for renter’s insurance average between $15 and $30 per month, depending on the location and size of the rental unit and the policyholder’s possessions. There are also specialized college student policies now being marketed to students on campus, which charge a flat fee for a small amount of coverage. Student policies often range from $50 to several hundred dollars, depending on your coverage and deductibles.
The steps to adequate insurance coverage are fairly simple, but extremely important. The Department of Insurance offers several guides to help students and their families understand insurance policies and what steps to take to make certain they have adequate protection. Commissioner Garamendi provided these guides, along with an inventory packet that makes it easy for students to record their belongings, as well as the following “quick tips.”
· Take pictures of your belongings, print them out and label.
· Fill out an inventory list, including make, model and cost of the item.
· Store your inventories and photos in a safe deposit box or at a relative’s home, but definitely not in your apartment or dorm room.
· If living on campus, have your parents check their homeowner’s or renter’s policy to see if your belongings are covered.
· Purchase renter’s insurance or a “college student” policy.
· Contact your auto insurer and update your information.
· Review your health insurance coverage, and purchase a school-sponsored policy if you are not covered under your family’s policy.
“Many family health policies drop you at age 23. Now that more students stay in school longer, graduation can come long after age 23,” said Commissioner Garamendi. “So it’s important that you carefully check to see what your university’s health plan offers, and to shop around.”
For many students, their most valuable asset is their automobile. Although auto insurance is expensive, it is the law, and it is well worth the expense. “Many students don’t realize they need to inform their auto insurance companies when the car is no longer parked in Mom and Dad’s driveway at night,” said Garamendi. “The last thing you want to hear is that a $2,000 fender-bender in the campus parking lot isn’t covered because you weren’t insured at school.”
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