A student has plenty to consider when starting college or university away from home. Share this article with your child to ensure they have the financial protection that insurance provides for their belongings while away at school.
Insurance for Students 101
From choosing a major to buying your own laundry detergent for the first time, this is a time of transitioning to independence and new responsibilities. One of those responsibilities is learning about insurance. Before or immediately after moving into your new lodgings, here are a few insurance facts every student should know.
Home insurance covers dependents under 21 who are temporarily away from home
Even though you’re living away from home for the school year, if you’re under 21 years of age you may still be covered by your parents’ or guardians’ home insurance.
A dorm’s contents might not be insured
Many insurers don’t offer a tenant’s package to those living in a college or university residence. If you’re planning on bringing high-value items with you to residence, make sure they’re insured under your permanent home’s policy.
If you’re renting off campus, tenant’s insurance is strongly recommended
What would you do if there was a fire in your apartment, and you were forced to leave the building for several days? Where would you stay? You may not be able to stay with family or friends, and living in a hotel and dining out every day quickly becomes expensive. Your tenant’s insurance would pay for these necessary extra expenses while your apartment is being restored – not to mention, it would cover damage to your belongings.
Ensure you have enough liability insurance
Tenant’s insurance policies also cover liability, which means you can be reimbursed if you’re sued. For example, if you have friends over and someone slips and falls in your apartment, you could be held responsible for the costs associated with their injury. If you’re serving alcohol in your home, you might also be responsible for the behaviour of inebriated guests after they leave. If you’re over the age that’s covered under your parents’ or guardians’ policy, a good rule of thumb is to have at least $1 million in personal liability coverage. This would be similar to proof of insurance required by a landlord, as some leases may require tenants to have coverage for legal liability in case they cause damage to the building or other apartments.
Your roommate(s) should be insured, too
You or your parents could be responsible for damage to your apartment that is done by your roommate, even if you’re not home when it happens. Avoid any unpleasant surprises by asking your roommate to secure their own tenant’s insurance if they’re not covered by their parents’ or guardians’ insurance.
Let your permanent home insurance representative know you’ll be temporarily away
If you’re under 21 years of age, it’s important to notify your parents’ insurance representative about the change in your living situation. They can review your family’s insurance needs with you and advise on how to make the most of your permanent home’s insurance while away studying at school.
How much does tenant’s insurance cost?
Each insurance policy is priced depending on the amount of coverage required to replace personal belongings. Once you know how much coverage you need, shop around and speak with a variety of insurance providers to determine which one offers the best coverage for a price that fits your budget. Be sure to ask about promotions and discounts. If you own a car, you may get a discount when you bundle your home and car insurance together.
For further information, you can always call IBC's Consumer Information Centre at 1-844-2ask-IBC. We’re here to help.