Every year as university students head to school, this question arises, do university students need insurance?
Let the brokers at Nuera break it down…
“Are university aged kids covered under their parent’s/guardian’s home insurance policy?”
The short answer is yes – but there are a few things to consider…
Unmarried students while attending school and residing away from the dwelling are covered for $7500 in personal property under a parent/guardian’s home insurance policy. The $7500 provides coverage for losses to those living away from home in residence for personal belongings such as computers, clothing, and other personal belongings.
The deductible that is listed on the home policy is owed if a claim is made to replace the items i.e., should a student’s $1500 Mac book be stolen and the deductible on the home policy is $1000, this deductible would have to be paid by the policy holder and the insurance company would cover the remaining amount.
If an unmarried student is living at home and is dependant on a parent/guardian, their belongings would be covered under the home insurance policy, as long as they are a full-time student.
Any claim made to a home insurance policy could increase the renewal premium, any claims made would mean claims free discounts are lost and having a claim on your policy means your policy is rated for such claims.
“Should a student purchase a separate tenant policy?”
If a student is working or going to school part time or married, it is advisable to purchase a student tenant policy to protect their belongings. A student tenant policy will also provide liability coverage and additional living expenses should there be an insurable peril that forces everyone from the home like fire or water/flood damage.
Minimal coverage for a student would include $30,000 coverage for personal property, $1 or $2 million in third party liability as well as additional living expenses. A student tenant policy costs around $30 per month and ensures students are properly covered.