Each year, to continue their studies, many young people leave the parental home to become tenants or roommates. And some of them have a tight budget and have to make spending choices. Some people think then save by not contracting insurance. While others may not see the need to have one.
However, the financial consequences of not having insurance in case of a disaster are significant and far exceed the cost of insurance.
Indeed, all students have a minimum of goods: their clothes, some furniture, a computer or perhaps a bike for their travels. If these goods were destroyed or stolen, would they have the means to replace them? In addition, despite all the caution and precautions, no one is immune from liability for an accident that could cause harm to others (eg, cooking, causing a fire that damages the neighboring apartment). This is called civil liability and the amounts claimed, if you are held liable, can be very high, hence the importance of being well insured.
Home insurance protects your personal property. Liability is usually included in home insurance policies and protects against damage caused to others unintentionally.
Depending on their situation, students have two options to protect themselves: being insured through their parents’ contract or getting their own insurance.
Are you covered by your parents’ home insurance?
A “dependent child” who temporarily leaves the home of his parents to study full-time in CEGEP or university may sometimes benefit from the protection of his property and his civil liability through his parents’ home insurance.
Since each insurer has its own conditions, insurability criteria and protections, it is important to call your broker or agent for damage insurance to check the scope and limits of the insurance contract.
Subscribe a renter’s insurance
However, if the student can not benefit from the insurance policy of his parents, or if for any other reason he wishes to subscribe to a contract in his own name, he may consider a renter’s insurance to cover his property and his public liability. A damage insurance agent or broker will be able to provide adequate protection based on the needs of the student, including the need to pay less while being well protected.
What to do in case of colocation?
If roommates can not benefit from their parents’ insurance coverage, some insurers agree to add one or more roommates to the same insurance policy.
You do not own your own vehicle, but you sometimes borrow the car from your parents or friends on the move? Inform the insurer to make sure you are well protected. Otherwise, in case of an incident, the bill could be salted, even the compensation refused.
Do you have your own vehicle? Car insurance with its lot of specificities, you can get many answers to your questions on the subject by reading our frequently asked questions. However, be aware that in Quebec, chapter A (liability) of automobile insurance is the only compulsory insurance. Chapter B (Damage to insured vehicles), for its part, includes several protections covering damage to its own vehicle.
If you have any questions about insurance, calling a property and casualty insurance agent or broker will help you get the best advice and the right explanation for your situation.