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Dorm insurance can cover the unexpected in college living

Kids bring a lot of expensive stuff to college, but is it covered if something happens?

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Kids bring a lot of expensive things with them when they head off to college, but is it covered if something happens?

Many parents probably don't think about dorm insurance. But start adding up what it would cost to replace all that stuff, and it might be worth considering.

Last semester at the University of North Carolina at Chapel Hill, a sprinkler busted and flooded an off-campus dorm. The break affected 200 students. Then another broken sprinkler caused flooding in Carmichael Residence Hall on campus.

Whether it's a freak accident, theft or loss, it might be worth it to make sure your children's belongings are covered by insurance.

"You also have to keep in mind just how responsible your child is," said Consumer Reports Money Editor Donna Rosato. "Are they really trusting with their belongings? And just how careful are they?”

If property is worth insuring, there are a few good options.

A parent’s homeowner’s policy will typically cover kids while they’re living in an on-campus residence at no extra cost, but the coverage might only apply to 10 percent of the parents' limit on the contents of their home. So, if the policy covers up to $50,000 in losses, the student’s belongings are covered for only up to $5,000.

Then there’s something called dorm insurance, which Consumer Reports says might be your best option. A $5,000 policy could cost about $140 a year but only has a $25 deductible.

A renters policy will be necessary for students who live off campus. Premiums vary based on the amount of coverage needed but are usually around $10 to $22 per month.

The cost might be worth it to know everything is covered should a student experience a break-in or a flooded dorm. Experts recommend assessing the true value of a student's possessions before getting dorm insurance.

Policies cover most school necessities, like laptops and smartphones, but also bicycles, sports equipment and musical instruments, all of which might have high enough price tags to warrant the extra coverage.

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