Hot property

Entrepreneur, August, 2003 by Jennifer Pellet

These days, when you send Junior off to college, chances are you've also sent along a small arsenal of expensive equipment and appliances--a laptop, a cell phone, a stereo, camera equipment, maybe even a PDA. So what do you do if something happens to this pricey personal property? Well, most likely, you replace it--which is why all that stuff your son or daughter toted off to his or her dorm room should be insured.

While your homeowner's insurance may cover the personal property of a dependent college student, buying a separate policy may be a better bet. "Most parents have fairly high deductibles on their homeowner's policies, typically $1,000," explains Karen Gallagher, president of Stillwater, Oklahoma-based National Student Services, an insurer that offers student personal property policies at schools nationwide. "So we recommend parents take out coverage that will at least cover their deductible."

After all, campus theft is far from uncommon. In fact, according to the Federal Education Department, 35,500 property crimes were committed on college campuses in 2000; Gallagher says one in 10 students will experience a theft during their time at school.

With policies starting at $55 annually, parents can insure against loss or damage to personal property owned or leased worldwide--which means Junior's laptop is covered even when he totes it to Europe during spring break. Now if only there were policies to ensure he attends classes and logs library time.