Leaving the family nest to study away from home inevitably involves a whole series of preparations. Home insurance is among the vital matters that cannot be neglected for standing safely on one’s own two feet. Here’s what you need to know about this.
No need for new home insurance
Contrary to what you may think, there’s no need to purchase home insurance specifically to cover your offspring’s new living quarters. It’s usually enough to adjust your own home insurance to meet these new requirements.
Adding “students’ personal property” coverage to the insurance policy you already have remains the best way to have peace of mind at little cost since this coverage may even be offered free of charge by the insurer.
Worth knowing for getting off to a good start
Of course, some criteria need to be met for “students’ personal property” coverage to take effect.
- The student’s parents must have a home insurance policy.
- The student must be a dependent of the insured or of the insured’s spouse.
- The student must be living temporarily at an address different from the parents’ address.
- The student must be enrolled at an educational institutions and study full-time there.
If your child plans to move in with one or more roommates, make sure they’re also covered by their own parents’ home insurance.
“Students’ personal property” protection generally covers 10% of the value of the property in the parents’ home insurance plan. For example, if you’re covered for $50,000, up to $5,000 of your children’s property will also be covered. With each insurer having its own conditions, insurability criteria and coverages, it is important to call your broker or general insurance agent to check on the scope and limits of your insurance policy.
It’s important to note that the student also benefits from the liability coverage provided by your policy. He or she will therefore be protected in case of unintended harm caused to someone else.
Make sure the amounts covered are adequate
If more than one of your children are studying away from home, they may all benefit from the coverage provided by your home insurance. However, since students often own various expensive electronic devices, you should ensure that the amounts covered are adequate and make the necessary adjustments.
You may request expanded coverage if necessary, for example if you need specific insurance for your son’s $5,000 racing bike.
To help your child get off to a good start, take a few minutes to inform your broker of the imminent changes. After all, a parent informed is a parent forearmed!