Congratulations to all the new graduates.
Your child just graduates college and is out among the rest of the world looking for work, and moving out on their own to start they next chapter in their life. What a great day for everyone.
A recent 2016 study revealed that only 41% of renters have renters insurance (insurance to not only cover their stuff, but also to protect from a liability situation if they are sued). So the argument is that the graduate just moved out of mom/dads house, and they really don't own anything yet - they have all hand me downs and not worth much. I couldn't agree more, however remember that the proper renters insurance will provide money to replace the items if there is a covered loss.....not just provide what the items are worth.
Also, the personal liability now is their responsibility. Especially with all the social media outlets - liable and slander law suits are far to common place.
Also, what about the car that they are driving?
If the car is titled in only the child's name only, the parents have no insurable interest in the vehicle and therefore parents, you can no longer insure the vehicle. Even if, somehow, your personal auto policy has their car on your policy, you have given the insurance company every right to deny a claim. Parents you might want to remove yourself from the exposure and consider gifting or selling the vehicle to your child and get your name off the title as well as the exposures of an accident your child may have.
What about all the college debit that has been now created?
It might be a good time to discuss a term life insurance policy to safeguard those left behind that would have to pay off the debit should the child die prematurely.
Key thing to remember is that if the children are no longer living at home and independent of their parents - they will need to get their own insurance. They will be tempted to research and buy coverage from one of the many online options. We hope that you, as parents, will explain the value of working with an Independent Insurance Agent that can be on their side and search for the best options for them among a lot of markets.
Welcome to the brave new world of being adult!