Insurance, yes, even in college

Protecting valuables

These days, it's not unusual to find dorm rooms stuffed with electronics, from the tiniest iPod to the biggest flat-screen TV.

Often, student belongings are covered under a parent's homeowner's or renter's policy, as long as the student lives on campus.

Allstate, for example, covers students living in campus housing -- a dorm, sorority or fraternity house. When a student moves off campus, though, coverage drops to encompass just 10 percent of the policy's content coverage.

Jeff Beck, an Allstate agent in Elk Grove, advises parents: "If your college kid moves onto campus with $20,000 worth of property and the dorm burns down, your kid gets the full replacement value under your policy. If the kid moves to an off-campus apartment, then the 10 percent limit applies."

Because many parents' policies carry high deductibles, filing a claim for $200 Nikes or a $1,000 laptop doesn't always work. Filing a claim also can jeopardize "no-claim" discounts.

In recent years, a number of companies have begun offering low-cost "laptop" policies aimed at college students. They typically cover up to $20,000 worth of personal property -- not only electronics but bikes, sports gear, musical instruments and those pricey college textbooks.

They also cover students studying abroad. Alvarez said his company recently paid out $3,000 to a student in Paris who was mugged and his backpack and suitcase stolen. Because the student had receipts for everything he'd purchased, Alvarez said he was fully reimbursed -- even for bath soap.

College student policies also cover accidental damages, but all claims are limited to losses that have been reported to local police or campus security.

Unlike most homeowner policies, the premiums and deductibles are extremely low. At National Student Services Inc., for example, a 12-month policy providing $6,000 of replacement cost coverage is $147 a year, with a $25 deductible.

Sandy Congdon, whose two sons are at University of California, Davis, and Arizona State University, said when they left home for college, she never considered renter's insurance.

"For what?," the Elk Grove mother said, laughing, noting that both her boys have furnished their off-campus abodes -- a house in Davis and an apartment in Arizona -- with used couches and tables, family hand-me-downs and cast-offs from friends.

"They're young. They just don't have anything that needs insurance," Congdon said, noting that her sons' biggest-ticket items are their Dell laptops.

Before considering whether to purchase insurance, add up the replacement cost of what you own.

College students' stuff -- electronics, books, musical instruments and sporting equipment -- are vulnerable to theft because they're so readily available in dorms and campus housing, said Allstate spokeswoman Patti Kelly.

She recommended that students never leave valuables unattended in a classroom, locker room or music hall. Don't walk away from a laptop in the library, even for a bathroom break.

Regardless of what type of insurance you're after, do your homework as deductibles and rates vary widely. Get quotes from at least three companies.

To compare prices on auto and homeowner's insurance from California-licensed companies, consumers can use a calculator at the state Department of Insurance Web site. Go to www.sacbee.com/links for a link to the page.

About the writer:

• The Bee's Claudia Buck can be reached at (916) 321-1968 or cbuck@sacbee.com.