Congratulations! You’ve made it. You are officially a graduate!
You are taking the first steps into the real world. With all the uncertainties that come along with graduating, it is important to make sure that you protect yourself and your assets with the right insurance policies.
Insurance is a contractual agreement, and in exchange for your payment each month, an insurance company promises to cover the cost of covered losses that you encounter. Without the right insurance policies, you could be left paying for the costly damages out of your own pocket, which can be a serious financial strain, especially when you are just starting out.
There are many types of insurance that you should consider after graduation to keep you safe, including:
Renters / Tenants Insurance
If you’re headed off to college, be aware that your parents’ Homeowners policy may offer some protection for your personal belongings & property in your dorm or student housing.
Homeowners policies generally cover a dependent’s personal property at 10% of the policy’s personal property limit. For example, if the homeowners policy has a personal property limit of $50,000, then dependents have $5,000 in coverage while living away from home. Dependents also receive 100% of the policy’s liability coverage.
Personal property typically includes your clothing, furnishings, electronic equipment, and other personal items. Items like jewelry, musical instruments, art, money, securities, or other highly valued items will have their own set limits specified in the homeowners policy.
If the homeowners policy does not offer coverage, or if you’re not headed to college, be sure you look into Renters Insurance.
Renters Insurance is typically very affordable and offers a good measure of protection. Be sure to report accurate property values to your insurance provider. You don’t want to pay for more insurance than you need. Also look for a policy that covers your property while it is not at the premises listed on the policy.
No matter what you drive, your vehicle must be covered with at least the state minimum in liability. In Texas, the minimum liability limits are known as “30/60/25” coverage, which means the policy will pay a maximum $30,000 to each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident.
Though minimum liability coverage will keep you legal on the road, it doesn’t adequately cover you or your vehicle. Liability insurance won’t cover your hospital bills or the costs to repair or replace your vehicle. Consider buying other types of coverage – such as medical payments, collision, and comprehensive – to pay for your expenses in case of an accident.
Volunteers / Directors and Officers Insurance
If you serve as a volunteer in an organization, make sure the organization carries general liability insurance and that volunteers are included in the “who is an insured” portion of the policy.
If you are on the board of directors of any organization, ask for a summary of their Directors and Officers Insurance policy. Make sure you are listed and covered in case you are personally sued for actions you take on behalf of the organization. This will ensure that you will be defended and covered for potential costs.
In past years, a student’s graduation could mean leaving behind not only the classroom but also health insurance coverage, since family plans often stopped covering dependent children once they left school.
However, the health-care overhaul has changed that: adult children can now remain on their parents’ plan until age 26, with very few exceptions. The only catch is for young adults under 26 who take a job that offers health insurance; in this case, they wouldn’t be able to stay on their parents’ plan.
If you need a health policy for yourself, check with the agent or company you are currently insured with, your alumnae/i association, or any general agent.
Where ever life takes you, make sure you’re covered.
Interested in your coverage options? Get in touch through the form below.
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