Laptop Insurance: How can your college student protect their most important possession?
The fall semester is starting, and college students are packing up their books, clothes, and wall posters to move on or near campus. If your child is preparing to leave, you may have questions about how their insurance needs will change when they’re gone. We’ve already discussed this issue at length. Still, there’s one important possession that needs a little more focus: the personal computer. This item is expensive—but just like a car—nearly every student will need one. So, take a look at this primer on laptop insurance.
How are laptops covered?
Insurance coverage for your child’s electronics will depend on their living situation. If they live on-campus, their possessions will most likely be covered under your home insurance policy. However, if they rent an apartment or house, your home insurance will no longer apply. Instead, they will need to purchase renters’ insurance, and that policy will cover their belongings, including electronics.
Most home and renter’s insurance policies, however, have coverage limits for possessions. That means if your child loves electronics and owns several expensive items, you should consider increasing your laptop insurance.
When are laptops covered?
Electronics—like most insured items—are only protected from specific perils. Most policies will protect them from fire, theft, and vandalism, and many will even cover damage from power surges. Although, you might have to purchase additional insurance for floods and earthquake damage if needed. Go over your policy carefully with your agent to make sure you understand what it includes.
You should also note that many policies will not cover accidental damage caused by your child. Remind your son or daughter about the expense of their personal computer and how much it will cost to replace if they break it.
How do carriers pay claims on laptops?
You can choose laptop insurance coverage for either “actual cash value” or “replacement cost.” The former will provide reimbursement for your child’s computer, but it will factor in the item’s depreciation. Thus, you wouldn’t recoup the amount of money you paid for it if you bought it several years ago. The latter choice comes with higher premiums but will help replace the computer with a similar make and model, regardless of depreciation.
If you have any more questions about your college student’s insurance needs, we’re here to help! Contact a Hibbs agent today.