Your homeowner’s policy may cover your children in a dorm room, but not in their own apartment. So when your kids are on their own, it’s time to consider renter’s insurance.

If they own valuable audio equipment, instruments, computers, research material or other items that would be costly to replace, renter’s insurance is a smart option. Some policies offer up to $25,000 of coverage for less than $300 per year. If your son or daughter owns unusually expensive items, like a rare piece of jewelry or artwork, a separate insurance rider may be necessary.

Make sure your kids know that damage to their property caused by natural disasters is often not covered. For example, if they live in an area prone to flooding or earthquakes, they’ll need to buy separate policies or riders. In some coastal regions where hurricanes occur, they might also need separate riders to cover wind damage.

 

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of savings and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction or strategy for his or her own particular situation. The examples mentioned are for informational purposes only and are not intended to represent results you should expect in the future. Data contained here is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.