At what times are a students possessions covered by their parents contents insurance?

As any parent knows, a student's possessions do not come cheap. Laptops, iPods, TVs and bicycles are de rigueur for the modern-day university student and these can require a lot of insurance cover when students live away from home.

But what may come as a surprise is that often a student's belongings are already covered by their parents' home or contents insurance policy. The scale and depth of coverage - and the exclusion clauses - will vary significantly between policies; here are some of the questions you'll need to review as university life begins.

Am I covered by my parents home or contents insurance policy?

82% of students who live away from home will have some coverage provided by insurance on the family home, according to a survey by NFU Mutual. Review your family's policy to check the amount of coverage offered and the relevant exclusion clauses.

How much cover will my parent's policy provide me?

Often there are restrictions to how much cover can be allocated to a student's possessions e.g. up to 15% to the total amount insured. Review the value of your belongings to make sure this is enough to cover the cost of what you are taking to university.

What exclusions on my parents’ policy should I look out for?

Students will usually have several expensive items such their laptop, bicycle, TV or musical instrument; make sure these are covered and that the maximum cover allowed for any one item is greater than the value of your most expensive possession. Also, due to some students being repeatedly accident-prone, some policies will cover you only for theft and will exclude losses resulting from accidental damage. You may also be required to bring home your contents during non-term time. Finally, standard policies may exclude coverage for items stolen outside of the property; laptops and bicycles stolen from communal areas on campus may not be covered.

Are there general restrictive clauses I should look for?

In the case of theft, insurers will look to make sure that there has been forced entry. Ensure that your private rented accommodation meets the security requirements o the policy, such as the quality and quantity of lock on doors or windows. If you are in Halls of Residence, you may need alternative insurance if your parents’ policy does not cover walk-in theft (no forced entry), which can be common in shared accommodation.

What if I am staying in Halls of Residence?

You may already be covered by a halls block policy put in place for university accommodation. Again, check the restrictions on claims within this policy (e.g. amount allowed for a maximum claim) and the amount of coverage available for items stolen outside of the halls of residence. Specialist halls of residence policies are available if this coverage is not enough for you.

What if am studying outside the UK?

It is highly unlikely you will be covered by your parent's policy, where cover is usually restricted to full-time education in the UK. You will need a separate specialist insurance policy.

Are there other advantages to getting a separate policy?

Claiming on your parents' policy may affect your parents "no claims bonus discount". Therefore their insurance costs may rise; have this happen repeatedly and you'll find that your parents' patience may wear thin. That works too the other way; if your separate policy remains claims-free, you can also benefit from no claims discounts, sometimes up to 25%.

What additional cover might a specialist student contents insurance policy offer?

Specialist policies may offer walk-in theft coverage (where forced entry is NOT required to be proven to pay out a theft claim); coverage for unusual items such as a musical instrument; laptop cover as an optional extra, with the premium set on the basis of the value of the laptop; accidental damage; optional coverage for iPads and smart phones; and full campus coverage for items stolen outside your accommodation.

Any other benefits to student policies that might help me?

If your laptop goes down or missing on a Monday, and you have an important assignment due on Friday, you will need to get your hands on another computer as soon as possible. Some specialist student contents policies provide you with an emergency replacement laptop within 24 hours; repaired laptops will get sent back to you by courier and you can return the borrowed laptop at the same time.

How much coverage do specialist student contents policies give?

The typical amount of cover available on a separate student contents insurance policy ranges from £2,000 to £8,000.