The Homeowners Policy & College Students

Each year, late summer brings a milestone for many families – sending a child off to college.  It is certainly a time of adjustment for parents and their young adults alike.  It is also a time for reviewing the new insurance exposures that arise from having college students.

Having a child in college creates a number of insurance exposures which can impact several areas of a homeowner’s policy.  A few of the more asked about exposures are addressed here:

Personal Property Taken to College
Coverage C for Personal Property applies to “personal property owned or used by an insured while it is anywhere in the world”.  As broad as this coverage is, it does refer to personal property of an “INSURED”. “INSURED” definition is those who are “residents of your household who are your relatives”.  Therefore, for a kid in college to be considered an “insured”, they must still be a “resident” of your household.  While the word “resident” is somewhat ambiguous and has many definitions, the vast majority of courts hold kids in college to be residents of mom and/or dad’s house.

Even though most kids in college are considered insured’s under mom and/or dad’s Homeowners Policy, there is a limitation on the amount of Coverage C available for the property they take with them.  The Homeowners Policy provides that only 10% of Coverage C, or $1,000, whichever is greater, applies for “personal property usually located at an insured’s residence, other than the residence primary premises”.

Liability Coverage for Kids
The insuring agreement for Liability provides coverage for bodily injury and property damage claims brought against an “insured”.  As discussed above, in most cases, kids are considered insured’s under mom and/or dad’s Homeowners Policy, and thus are protected under Coverage E – Liability and under Coverage F – Medical Payments, giving them personal liability coverage worldwide.

Premises Liability for Rented Dorm, Apartment or Rental House

While most college kids receive “insured” status for their personal liability, the Homeowners Policy has limitations on which premises are covered for liability that arises out of the premises.  Most policies contain exclusions for Claims “arising out of a premises owned by an insured, rented to an insured, or rented to others by an insured, that is not an insured location”. While a dorm room, by its nature, fits the definition of an “insured location”, to avoid any uncertainty regarding whether or not a rental house or rental apartment is considered an “insured location”, these secondary residences should be added to a Homeowners policy as insured locations.  So be sure to contact your insurance agent to make sure these locations are covered.

Liability for Damage to a Rented Dorm, Apartment or Rental House

Property coverage cannot be extended to provide coverage for damage to a rented dorm, apartment, or rental house.  As for coverage for property damage liability, there is limited coverage.  Contained within the policy is an exclusion for “property damage to property rented to, occupied or used by or in the care of the insured.  This exclusion does not apply to property damage caused by fire, smoke or explosion”.

Note:  Please be aware that every claim situation is different and every loss scenario has its own unique set of circumstances.  Coverage for a specific loss will be determined based on actual coverage purchased and is subject to all of the terms and conditions of the insurance policy that is in force at the time of loss.

This information provided to us by our friends at Standard Mutual Insurance.

Insuring Your Bicycle

With gas prices being elevated, beautiful summer weather surrounds us and vacations occurring, I am seeing more people taking the time to ride bikes. Many of whom ride to work daily to save the gas expense, some ride merely for the enjoyment while others for exercise.

If you are one of the many people who take time to ride, perhaps you have invested in a higher quality bike.  Did you ever think about how that bike might be covered by insurance?

Our friends at the Insurance Information Institute (III) have provided the following helpful information for all you cyclists out there.

A bike can cost anywhere from a few hundred dollars for a basic model to several thousand dollars for a fast, light racing bike. In 2010 (the most recent data available) there was over $6 billion in bicycle sales in the United States, according to the National Bike Dealers Association.

Fortunately, bicycles are covered under the personal property section of standard homeowners and renters insurance policies. This coverage will reimburse you, minus your deductible, if your bike is stolen or damaged in a fire, hurricane or other disaster listed in your policy. Under most policies, you would also be covered if the bicycle is stolen from your car.

You can insure personal property like a bike in two ways—for its actual cash value or its replacement cost. If you have an actual cash value policy, you would be reimbursed based on the depreciated value of the bike. With replacement cost you would be paid the cost of replacing your current bike less the deductible.

Homeowners and renters insurance policies also provide liability protection for harm you may cause to someone else or their property. If you injure someone in a bicycle accident and he or she sues you, you will be covered up to the limits of your policy. It does not matter if you own or rent the bike; if you have a home or renters insurance policy, you will have liability protection. Most people have $100,000 to $300,000 worth of liability protection as part of their standard policy. But higher amounts of coverage are available. Your homeowners or renters insurance policy also includes no-fault medical coverage in the event you injure someone. This way, they can simply submit a medical claim to your homeowners insurance company without suing you. This coverage usually ranges from $1,000 to $5,000.

When purchasing a new bicycle, keep the receipt and call your insurance professional immediately. And

keep in mind that bike accessories such as a helmet, pump, lights, saddle bag and clothing can add up and are included in your insurance coverage.

If you own a particularly expensive bicycle, you may want to consider getting an endorsement to your homeowners or renters insurance policy. A number of insurance companies have endorsements for sports equipment; some specifically for bikes. The endorsement may have broader coverage and there will likely be no deductible. Your insurance professional can review your coverage options with you.

One of the best ways to make you are properly insured is to have an up-to-date home inventory of all your personal possessions, including your bike and accessories. A home inventory can help you purchase the correct amount of insurance and make the claims filing process easier if there is a loss. The I.I.I. provides free, online home inventory software atKnowYourStuff.org, as well as a home inventory app.

Basic Bike Safety
The I.I.I. recommends the following safety measures for cyclists:
1. Protect your head: Never ride a bike without a properly fitted helmet.
2. Make sure your bike is safe to ride: Your bike should fit you properly. A good bike shop can adjust your bicycle so that it fits your body comfortably, and check all parts of the bike to make sure they are secure and working well.
3. Follow the rules of the road: Bicycles are considered vehicles on the road; therefore riders must follow the same traffic laws as drivers of motor vehicles. Always ride with the flow of traffic, on the right side of the road, and as far to the right of the road as is practicable and safe.
4. Be predictable: When you ride, consider yourself the driver of a vehicle and always keep safety in mind. Ride in the bike lane, if available. Take extra care when riding on a roadway. Courtesy and predictability are key to safe cycling.
5. Be visible: Take responsibility for making yourself visible to motorists, pedestrians and other cyclists. Wear bright colors and have lights mounted on your bike if you plan to ride after dark.
6. Stay focused and alert: Do not wear headphones as they hinder your ability to hear traffic. Be aware of your surroundings and ride defensively. And, don’t try to talk or text while cycling.
7. Take safety classes: Bike clubs, bike shops and community groups offer a range of classes on everything from preventing helmet hair when you get to the office to cycling tips for children. These organizations are familiar with the cycling conditions in your area.


For more information on Rules of the Road for Biking Safety  and Tips for a Better Ride, visit
League of American Bicyclists

Rules of the Road - http://www.bikeleague.org/content/rules-road-0

Ride better tips - http://www.bikeleague.org/content/ride-better-tips

Camping & Outdoor Safety

More and more families are enjoying the pleasures of camping and outdoor life. Some advance planning will make camping trips more enjoyable and safer.  Look for a campsite that offers good drainage, with a good combination of sun and shade.  Check the area for hazards, and instruct children about things to avoid such as poisonous plants, wild animals and moving vehicles.

Here are a few more safety tips to help you enjoy your time in the great outdoors:

• Wear shoes, sandals or moccasins at your campsite; glass, cans, sharp rocks and hot embers can hurt bare feet
• If you bring perishable food, use a portable ice chest to keep it from spoiling
• Keep the site clean. Dispose of cans, bottles and garbage safely in a campground trash can or appropriate receptacle
• Obey signs and warnings concerning wildlife.  If raccoons, skunks, porcupines or other small animals come to your campsite, scare them away with a flashlight or a loud noise.  IMPORTANT:  Don't keep food in your tent where it can be smelled by animals -- store it away from the campsite
  
• Never leave a fire unattended.  When finished with it, spread the burned pieces/embers out, soak them touroughly with water, and then cover them with sand

These safety tips will keep you and others safe but it will keep the campground clean and safe from fires.

Information was provided to us by Safety Sense Enterprises Inc.

Please remember while you are away, do not share your events on social networking sites as it tells people you are not at home and leaves your home vulnerable to break in.

Be sure to have someone check on your home regularly - having lights scheduled to turn on and off at various times in different rooms is recommended to appear as if you are at home.  Remember, lights turning on and off at the same time could indicate a homeowner is away.
If you have pets, remember to either board them away from the home or be sure to have someone come to check on them daily.