Is tenant’s insurance required?
The summer holidays are long gone, it’s back to work and back to school for the lot of us. Companies are already operating at full throttle, seasonal businesses are winding down and kids everywhere are starting a new year of education. The older ones have moved out to study abroad, far from your home. The killer question here is: does a student need tenant insurance to be properly covered?
Personal property and liability
These are relevant questions. Is a student’s personal property and his liability covered on his parents' insurance or will he need to get his own insurance policy? Many insurers will offer a limited coverage for children attending school full-time. Their liability, that is coverage in case they cause damages is also usually covered by the parent’s policy. How can you be sure? Contact your insurance representative and… read your policy. Another tip: If the student is living with other roommates, make sure that everyone has proper insurance coverage.
What is a dependant child?
If you plan to extend the parents' policy to the student, you’ll have to comply with the definition of dependant children. It does differ in every province. In Ontario for instance, insurers will usually follow the province’s definition: any child less than 22 years of age. The age may be extended in some policies, but the other conditions to qualify for the coverage are usually the same: that the child be attending a valid learning institution, that he be attending school (registered for) full-time studies and, unsurprisingly that he be attending a school in a different town. Your insurance representative can confirm your coverage and increase it as needed.
What about car insurance?
Let’s imagine that dad has just bought a car for his son so that he could visit his worried mom every week-end? It’s an old clunker, you don’t need a lot of insurance for that, right? But should you add it to the parent’s policy or get a young driver’s policy? That’s up to you, but the smart money is on the student having his own insurance policy (and the owner of the vehicle) so that the parents don’t have to pay for their kid’s mistakes (i.e. accidents) on their next renewal. To limit the cost of this insurance, the son can get the most basic coverage, liability. Ask an insurance representative for advice.
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