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Tenant insurance for university students is cheaper than you think

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Teenagers are bringing more expensive items to university than ever before. Whether it’s a $1,000 smartphone, a $500 TV, or $2,000 laptop – there is insurance for college students. It’s not a special product, despite marketing efforts indicating otherwise. Student renters insurance exists, but it’s commonly referred to as tenant insurance, and it’s much cheaper than you think.

Tenant insurance for university students

Tenant, or renters insurance, at its base includes 3 coverages: Third-party liability, additional living expenses, and contents insurance. Let’s look at what they cover.

Third-party liability

Suppose a guest injures themselves in the student’s unit or destroys property within the apartment. In that case, a third-party liability claim will pay the related medical expenses and repairs. It can also cover legal fees. Unless a student is negligent, this coverage offers peace of mind if they want to throw a party.

Additional living expenses

If a flood or fire damages the apartment, additional living expenses pay for you to live elsewhere. It covers the cost of accommodation and any related expenses like laundry and internet installation.

Contents insurance

Contents insurance protects the valuables, like electronics and gadgets, if they are stolen or damaged. Keep an up-to-date inventory, ideally with receipts, of all your belongings and their costs. It makes for a much smoother claims experience. Yes, there are custom apps you can use like Sortly, but a simple Google sheet will also suffice. Just make sure it’s cloud-based so you can access it if a thief steals your laptop or phone.

Contents insurance protects your stuff inside and outside your apartment. If a thief steals something from your car, you’ll use your renter’s insurance.

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Car insurance for students away at college

Student car insurance doesn’t come cheap because historically speaking, young drivers are less experienced, take more risks, and get into more accidents. 

However, if you bundle with your tenant insurance policy, you can save up to 15%. Ask the financial aid office if your post-secondary institution has any affiliations with any insurance providers because there may be savings there, too. Also, consider telematics or usage-based insurance, which is an app that measures your driving behaviour, and you can save money.

To get cheap auto insurance, the student should go under their parents’ policy and leverage their safe driving history.

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Does my homeowners’ insurance cover college students?

Yes, students are typically covered by their parent’s home policy, provided they’re in an on-campus residence or dorm room. On-campus residence is considered a temporary situation, so you should still be listed as a primary resident of your parent’s home. Keep in mind that every insurer is different, so you should speak with your provider to make sure. There may be limitations, such as a maximum age, full-time enrollment, or coverage amount. You may also want to add a homeowner’s insurance rider or add-on to add coverage for the extra contents you’ll be insuring.

But, arguably, it makes more sense to get the student their own tenant’s insurance for two reasons. First, if the student makes a claim, it could cause your home insurance rates to increase. The second being when your child moves out into a house with friends or gets an apartment, they will need their own renter’s insurance. In other words, your home insurance will no longer cover the university student. 

How much is tenants insurance for university students?

It varies based on location, contents, and the building, but policies start as low as $12 a month, but no more than $25. So, for $3-$6 per week, if you can skip one latte or late-night milkshake run per week, you’re good — a small price to pay for protection. You can compare renters insurance quotes online with

Visit our student personal finance guide.

Financial literacy early in life will pay dividends in your future. Learn more with Ratehub's guide to managing your money as a student.

Do college students need life insurance?

You should consider life insurance as a post-secondary student if you have a lot of outstanding debt that can be passed on or you have dependents that rely on you financially. 

Government loans, such as OSAP, can be written off completely after the borrower’s death, so you don’t need to worry about passing these on. However, if you took out a private loan with a co-signer, such as your parents, this debt will be passed on to them after death. 

If you have outstanding mortgage debt for your university housing, this can also be passed on to whoever inherits the property. Or if you regularly provide income for family members, they may need the financial protection of a life insurance policy. 

On the other hand, if you don’t have too much debt that could be passed on and you don’t have financial dependents, life insurance may not be necessary for your case. Keep in mind that getting approved for a policy is easier when you’re young and healthy, and you’ll be offered a cheaper premium. 

The bottom line

So do college students need renters insurance? Give your kid the benefit of peace of mind so they can focus on their studies. Higher education is expensive as it is, you don’t want to fork over thousands of dollars to replace a laptop when a cheap insurance policy covers it.


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