NASHVILLE, Tenn. (WTVF/CONSUMER REPORTS) — It’s no secret that college costs a lot of money these days. On average, in fact, it's more than $27,000 dollars a year to attend a state school and more than $55,000 for a private university — leaving some families to wonder if there’s any way to protect their money in case of emergency.
You've heard of homeowners insurance, car insurance, and even renter's insurance. Well, guess what! If you want to protect the investment you've made in your child's tuition or the stuff they've got in their dorm, there's insurance for that too.
Consumer Reports says there are two ways to protect some of that investment: tuition insurance and dorm insurance.
"If your child experiences a major health issue and has to drop out midway through the semester. In that case, the tuition insurance would refund you for the portion your child did not receive," said Penny Wang, Consumer Reports money editor.
That’s on top of what your kid’s school may refund you.
"Check the coverage terms to see what precise conditions are covered and what is needed. But generally medical records, a doctor’s letter — you’ll need to send that into the insurance company," Wang said.
Then there’s dorm insurance. In general, coverage is affordable and it’s something you might want to consider with all the expensive things teens have these days.
"Dorm insurance covers all the stuff that your kid may be taking with him or her to college. If something happens, it’s one way that you can get coverage, reimbursement for loss, damage," Wang said.
Although you may have some coverage for your kid with a homeowners policy, Consumer Reports says dorm insurance or even renters insurance might be a cheaper option — a few hundred dollars a year — since deductibles are often higher with homeowners insurance.
If your child does not take a car with them to college, you can save money by scaling back your auto insurance.