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Coverage for your kid while away at school

Last week I had a conversation with a friend about his son going off to college and if his insurance would cover him while away at school. The answer is jaw droppingly simple – yes, no and maybe! Let me explain the important points to consider:

1. Regarding his stuff, most possessions of students who live in an on-campus dormitory are covered under their parents’ homeowners or renters insurance policy. there are some variations to the automatic coverage. According to the Insurance Information Institute, some policies limit such coverage to 10 percent of the total amount of a policy’s coverage for personal possessions. In addition, some standard policies may also limit coverage for more expensive possessions like computers and electronics; full coverage could require the purchase of floaters or stand-alone insurance. Your policy most likely also doesn’t cover your child’s possessions if your child lives off-campus. As a result, you’ll have to check with your agent to determine exactly what your policy covers.

2. Regarding his car – being away at school, he may be able to save some money on auto-insurance premiums. If his college is at least 100 or 150 miles away and he leaves the car at home, the insurer could rate him “restricted,” which reduces your rates but still provides coverage when he comes home to visit or if he drives someone else’s car that has lower coverage limits.

3. Regarding his grades - the insurer’s good-student discount may apply. Many insurers will give you a price break if your child maintains at least a B average in college

4. Regarding his health care options – typically his son will have 5 options regarding health insurance coverage while away at school, they are:

1. Parents’ health insurance plans. A provision of health reform law that becomes effective in 2010 allows adult children to keep their coverage under a parent’s health insurance policy until age 26, whether or not they are currently enrolled in college. The parent’s policy might be group coverage sponsored through an employer or an individual or family policy purchased by the parent. Some employer-based plans are accepting students now while others may wait until January 1, 2011 before allowing student to re-enroll.

2. Individually-purchased health insurance plans. Many students purchase coverage on their own in the form of an individual, non-group policy. There is a broad variety of individual coverage options to choose from nationwide. However, until 2014, in most states it is still possible to be declined for individual coverage based on pre-existing medical conditions.

3. School-sponsored health plans. Many colleges and universities offer their own health insurance plans to students. Some of these plans place strict limits on the range of benefits covered and may limit access to only those doctors and services available through an on-campus student health center. As regulations for health reform laws continue to be written, the future of school-sponsored plans is uncertain.

4. Individually-purchased student health plans. These plans may resemble school-sponsored plans by placing specific limits on certain benefits, but they typically offer more freedom in obtaining medical care away from campus. Student health plans may be especially valuable for those going to school in a different state. While the post-reform future of these products is also uncertain, new and innovative student health plans with richer benefits are being introduced to the market.

5. Government insurance options. These may include state or federal insurance programs such as Medicaid or high risk pools. In order to qualify for some of these products you must have a diagnosis for a pre-existing medical condition on file with your doctor. You may also need to have been previously uninsured for a minimum of six months.

Again, I urge every with concerns regarding this topic to do some research and/or contact their insurance agent. Different companies vary when it comes to coverage for kids who live in the household and insurance coverage while they are away at school

ITV, Coinsurance & More

My experience with insurance to value has taught me that this is not an area that should go ignored by commercial as well as homeowner policyholders. Initially, I took a contrarian view as I thought it was the agents job to monitor and maintain the insurance to value on an insured property. Although it is the professional responsibility of the insurance sales professional to meaningfully participate, the main impetus is on the policy holder to make sure the (ITV) is accurate, current and relevant.

What is (ITV)?
Insurance written in an amount approximating the value of the property insured. In other words, the property for various reasons could increase in value and as it does, so should the amount of coverage on the property. A replacement cost (replacement cost is very important when it comes to addressing ITV) calculation (physical inspection in most cases) is the means by which the (ITV) is determined.

(ITV) is important for several reasons:
The insured: Many insurers of homeowners offer "Guaranteed Replacement Cost" coverage--but generally it is only provided in their "preferred" programs and it is limited to a modest amount (usually 20 percent to 25 percent) above the actual amount of coverage purchased. Home improvement a national pastime and construction costs rising, it’s a good idea to check your policy limits once a year. Planning to remodel your home? Just finished adding that new deck or garage or fence in your front yard? It could be time to review your limits.
Therefore, many homeowners may find that their policies will not cover the replacement of their homes, if they face a total loss. So what could happen in the event of a claim wherein the (ITV) is not up to current? The policy holders claim settlement could be reduced for not having the accurate (ITV) and corresponding coverage on the property.

The Insurance company:
When underwriting insured properties, insurers need to obtain accurate insurance-to-value ((ITV)) calculations so they can charge the right premiums for the risks they assume. Adequate (ITV) is not an issue to be taken lightly. If insurers do not receive accurate values for the properties they insure, their premium pricing is based on faulty data and their long-term financial stability could be at risk. In layman’s term’s they need make sure that they are collecting enough many to fully insure the risk.

One of the principle tenants of (ITV) is coinsurance. Simply put, coinsurance is the amount of self insurance you assume per policy agreement. Property coinsurance obligates the insured to keep a specific amount of insurance in force on the insured property, or else face penalties in the event of loss. Typically, the policyholder is regarded as a joint insurer only when insuring property for less than the required portion of its full value; only then does the insured become jointly and proportionately responsible for losses. The required level of insurance may be a stated amount or a percentage of the property value. In the event the insured purchases a policy with a face value equal to or greater than the required amount, coinsurance does not play any role in calculating indemnity on insured losses and a covered loss will be fully insured beyond the deductible.

Next up: The coinsurance clause defined

THE COST TO DRIVE IS GOING UP 4.8% PER AAA


The average cost to own and operate a sedan has risen 4.8 percent to 56.6 cents per mile thanks in part to the increasing prices motorists are paying at the pump, AAA says today in its annual driving costs study.Increases in the costs of gas, tires and insurance were the primary factors causing a rise in all categories of vehicles in the U.S., the motor club said. Fuel costs were almost 13 percent higher than the cost of fuel in last year's study.

The average costs of full coverage insurance on sedans also rose 5.7 percent over last year, while tire costs increased an average of 8.7 percent.The disappointing news in the report is that costs could go higher. Crude shot to an 18-month high above $87 this week, from $69 in early February, on investor optimism oil demand would increase following a recovering global economy.

The average cost of a gallon of gas was hovering above $2.80 in Indianapolis today and $2.83 statewide, according to AAA and Oil Price Information Service. That almost $1 higher than at this point a year ago.John Nielsen, director of AAA Auto Repair and Buying, said higher prices affect depreciation values, as the most fuel-efficient vehicles hold their value longer.

The per-mile cost of a small sedan is 43.3 cents compared to an SUV, at 73.9 cents per mile.AAA has published "Your Driving Costs" since 1950. That year, driving a car 10,000 miles per year cost 9 cents per mile, and gasoline sold for 27 cents per

2010 Storm Names

The following names will be used for named storms that form in the North Atlantic in 2010. Retired names, if any, will be announced by the World

Meteorological Organization in the spring of 2011. The names not retired from this list will be used again in the 2016 season.

This is the same list used in the 2004 season with the exception of Colin, Fiona, Igor, and Julia, which replaced the names of the four major hurricanes that made landfall in Florida in the U.S. in 2004: Charley, Frances, Ivan, and Jeanne, respectively.

1. Alex (unused)


2. Bonnie (unused)


3. Colin (unused)


4. Danielle (unused)


5. Earl (unused)


6. Fiona (unused)


7. Gaston (unused)


8. Hermine (unused)


9. Igor (unused)


10. Julia (unused)


11. Karl (unused)


12. Lisa (unused)


13. Matthew (unused)


14. Nicole (unused)


15. Otto (unused)


16. Paula (unused)


17. Richard (unused)


18. Shary (unused)


19. Tomas (unused)


20. Virginie (unused)


21. Walter (unused)
    
    
    
    
    
    
    
    
    
    

Social Media And Insurance Claims

Using Facebook or Twitter 'could raise your insurance premiums by 10%

People who use social media websites such as Twitter and Facebook have been warned that they could eventually face rises in their home insurance premiums of as much as 10pc.
Services such as Twitter, FaceBook, Foursquare and Buzz can alert criminals when users are not home, according to Confused.com
Services such as Twitter, Facebook, Foursquare and Buzz can alert criminals when users are not home, according to Confused.com, the price comparison service. Foursquare, for example, shows that people are in a specific spot and, more importantly, that the user is definitely not at home, Confused.com added.
It predicted that the new wave in social media could eventually lead to big rises in home insurance premiums.
Darren Black, the head of home insurance at Confused.com, said: "I wouldn't be surprised if, as social media grow in popularity and more location-based applications come to fore, insurance providers consider these in their pricing of an individual's risk. We could see rises of up to 10pc for people who use these sites.
"Criminals are becoming increasingly sophisticated in their information gathering, even using Google Earth and Streetview to plan their burglaries with military precision. Insurance providers are starting to take this into account when they are assessing claims and we may in future see insurers declining claims if they believe the customer was negligent."

The company offered the following advice to users of social networking websites:
1. Never post your home address or other personal information such as your home phone number on social networking sites
2. Don't follow people you don't know on social networks and use block others from seeing your profile if you don't know them
3. Turn off location-based services on Twitter and Facebook unless you absolutely need to use them

Let’s get this party started or you might want to not start it once you know how you may be liable for the actions of the attendees if you serve alcohol. We all like to have a good time particularly during celebrations for events such as graduation, holidays, anniversaries, New years and the list goes on. Did you know that as a “social host” (which is what you are if you are serving alcohol at your event) you are liable the actions of third parties who go out and cause harm to others such as an auto accident.Dram shop liability refers to the responsibility of the tavern, restaurant or other business (or social host) that sells or gives the alcohol to an obviously intoxicated person or a minor who then causes harm to another. Dram shop liability laws vary widely by state in regards to serving alcohol to an intoxicated person. For instance, ten states such as Nevada have no dram shop liability laws at all. Most states impose liability on social hosts where: Alcohol is served to a minor which is fairly obvious or The host was reckless in serving alcohol or should have recognized the extent of the guest's intoxication and not served him or her more alcohol. So what should you do? Consider the following:

• Don’t serve drinks to minors
• You might consider using chaperones to monitor quest – a designated driver, if you will
• Host the event at a liquor licensed restaurant, bar or other facility which would be responsible for serving drinks
• Some say implement a “Cash Bar” I don’t share that view as you could possible be on the hook
• Don’t serve drinks at all

Please know that the aforementioned is not a guide but a researched opinion. You should consult a legal professional in your state to get precise information on this topic.

Click here to see Social host/dram shop laws for each state.