🇺🇸 The "Off-Premises" Secret
Standard Homeowners policies (HO-3) cover your personal property anywhere in the world, not just inside your house. This is technically known as "Off-Premises Coverage."
If your child is a full-time student, under the age of 24, and considered a resident of your household before school, the insurance industry treats their dorm room as an "extension of your primary residence."
The Result: If their laptop is stolen from the campus library or their dorm room floods due to a burst pipe, your policy typically covers the loss. You often do not need a separate policy.
The "10% Limit" Calculation
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| Sending Your Kid to College? |
While coverage extends to the dorm, it is capped. Most insurers limit "Off-Premises" claims to 10% of your total Personal Property coverage (Coverage C).
🧮 Let's Do the Math
- 🏠 Your Home Coverage: Let's say your house is insured for $500,000 (Dwelling).
- 🛋️ Personal Property Limit: Usually 50% of Dwelling = $250,000.
- 🎓 Off-Premises Limit (10%): 10% of $250,000 = $25,000.
- 👉 Verdict: Does your kid have more than $25,000 worth of stuff in their dorm? Unlikely. A laptop ($2,000), clothes ($2,000), and a bike ($500) fit easily within this limit. You are covered.
The "Dorm vs. Apartment"
This is where 80% of parents make a fatal mistake. The "free extension" usually only applies to On-Campus Housing (Dorms).
Why? Insurance companies view an off-campus apartment as a separate, permanent residence, not a temporary extension. If your sophomore moves into a shared house downtown, your home insurance stops at the door. They need their own Renters Insurance (cost: ~$15-$20/month).
The Deductible Dilemma (CLUE Report)
Even if you are covered, should you file a claim? This is the "Mathematical Trap." Filing a claim records the incident on your CLUE Report (the credit score of insurance).
- 📉 Scenario: Your son's $1,500 laptop is stolen.
- 📉 Your Policy: Has a $1,000 deductible.
- 📉 The Math: The insurance pays you $500 ($1,500 - $1,000).
- 🛑 The Consequence: Because you filed a claim, your home insurance premium might surge by $300-$500/year for the next 3-5 years. You lose money by claiming.
When to Buy Standalone Insurance
So, when should you ignore your home policy and buy a separate student plan?
🛡️ Buy a Separate Policy IF
- Your Deductible is High: If your home deductible is $1,000+, buy a standalone "Electronics/Gadget Policy" (e.g., Worth Ave Group, Lemonade) with a $50 deductible.
- The "Forced Entry" Clause: Many homeowners policies deny dorm theft claims if there are no signs of forced entry (e.g., door was left unlocked). Standalone student policies often cover this "unforced" theft.
- High Liability Risk: If your kid accidentally sets off sprinklers and ruins the whole floor, the liability claim could be massive. A separate policy keeps this claim off your primary home insurance record.
Chief Editor’s Verdict
Don't guess. Policies vary significantly by state and carrier (State Farm vs. Allstate vs. USAA).
Action Plan
1. Call your agent today. Ask: "Does my 'Off-Premises Coverage' extend to a college dorm?"
2. Ask the "Forced Entry" question: "Is theft covered if there are no signs of forced entry?"
3. If your child has expensive gear (MacBook Pro, Gibson Guitar), consider adding a "Scheduled Personal Property" rider. It costs little, has $0 deductible, and covers "mysterious disappearance" (losing it), which standard policies usually don't.
This article provides general information about Homeowners and Renters Insurance policies as of January 2026. "Off-Premises Coverage" terms vary significantly by carrier and state. Important for Coastal Colleges (FL, TX, SC): A separate "Wind/Hail Deductible" may apply to dorm belongings in hurricane zones. Some policies explicitly exclude theft from student housing unless there is forced entry. The author is not a licensed insurance agent. Always consult your policy document for specific coverage details.
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