Proper insurance cover essential for children sent to university

Christelle Fourie, Managing Director at MUA Insurance Acceptances.

As the holidays finally end for many school leavers and preparations for entering university begin, parents have been advised to ensure that the belongings being used by their children while at university are properly protected by their insurance cover.

This is according to Christelle Fourie, Managing Director at MUA Insurance Acceptances, who says that during this period many students are still dependent on their parents and often use items such as cars, apartments or laptops. "While the whole family is excited about the youngster's new start, there are also various important insurance aspects that parents need to consider before they send their children off to university or college."

She says the main policyholder has to ensure that their insurance policies reflect any change to the living arrangements or usage of items insured. "Parents often buy or loan their children items such as fridges, couches, beds and other furniture when their children move into student accommodation at university. When they do this, it is vital that these items are included into the main home contents policy in order to be covered in the event of breakage or theft."

In addition, Fourie says it is also important that the insurance policy also reflects the new location of the items, as claims could easily be rejected in the event that their correct address is not reflected on the policy documents.

She says that it is important that the policyholder informs their insurance provider about any newly acquired items, such as laptop computers, and clearly states that their child will be using the items in another residence. "Should these changes not be included in the updated insurance policy, the policyholder will be at an increased risk of having their insurance claims rejected."

Many parents also decide to give their children a car when they go off to university, says Fourie. "In the event that this happens, the policyholder needs to inform their insurance provider that the vehicle will be driven by the child. The insurance provider will also need the full details of where the vehicle will be parked during the day and at night. This is vital, as the age of the regular driver and location of the vehicle heavily impacts the premium charged as well as other terms and conditions of the cover."

She adds that an effective tool to help track the driving habits and usage of cars is to install a tracking device. "By installing a tracking device, parents and the insurer alike will be able to monitor the cars whereabouts and the student's driving behaviour."

Fourie stresses the importance of parents being honest when updating their insurance policies. "Each of these factors has a direct impact on the risk profile and without adding these to the insurance policies. If any information is misrepresented to the insurer, claims may very well be rejected."

Should consumers find the higher premiums hard to bear, Fourie suggests that policyholders consider combining their motor and home policies, as many insurance companies will offer reduced car insurance premiums if the policy is accompanied by household contents insurance.

"As with any change in living situation, it is vital to keep the insurer informed of any changes in location or additional to items being covered by an insurance policy to avoid financial repercussions in the long term,"
concludes Fourie.