As a young adult, preparing to begin your university experience can be an overwhelming yet exciting time. While setting up your course schedule and choosing a place to live are important, don't overlook one important consideration: insurance. According to Investopedia, nearly 30 per cent of young adults don't have insurance coverage, which can result in them accumulating overwhelming medical bills. Let's face it. Accidents happen at any time, so being prepared with the right coverage can save you from those unexpected expenses. This is especially important at a time when most students choose to lead a frugal life.
Here we outline insurance options available to young adults preparing to embark on this important life journey.
Health Insurance
Luckily, the provincial health care system in Canada provides coverage on basic and preventive medical services, including emergency care. If you're looking for additional services like dental care, vision care and prescription medication, you'll need to consider taking the private health insurance route. When enrolling at your post-secondary school, take the time to go over the details of your tuition coverage. In most cases, you're automatically enrolled for a health and/or dental plan. Your inclination might be to opt out of that coverage. It's best not to, especially if you're no longer covered under your parent's protection plan.
Property Insurance
With everyone going virtual during the pandemic, school supplies became more than just textbooks. Nowadays, students need the latest tech to get through the day. This includes smartphones, laptops and other virtual systems necessary to complete school assignments. Regardless of whether you're living on- or off-campus, student housing has lots of traffic, and there are often parties taking place. This increases the exposure to theft, fires and or property damage. And, beyond the increased traffic, accidents and weather-related emergencies are always a possibility, no matter how careful you may be.
It's possible that your parent's home insurance policy may cover some (if not all) of the protection against theft. So, it's worthwhile that you check with an insurance broker because every insurance policy provider has different exclusions and limitations.
Property Coverage
Tenant's Insurance
Another insurance option available to students is tenant, or renter's insurance. It's favorable to consider this insurance option in case of an emergency that may result in you relocating to another accommodation. This includes potential hazards like a fire or water damage. Tenant insurance coverage includes:
- Third-party liability
- Additional living expenses
- Contents insurance
Liability coverage pays the costs that may be needed for defending you in a lawsuit. For example, if a guest is injured in the student's unit or destroys the property, a third-party liability claim is intended to pay medical expenses and repairs.
In the event of a flood or fire damage, additional living expenses cover the costs of accommodation or other expenses, including laundry, internet installation, hotel bills, restaurant meals and moving costs.
Contents insurance is great because it protects all your valuable electronics and tech in case of theft or damage. It is also worth noting that contents insurance covers your gear inside and outside your housing unit. For instance, if something is stolen from your car or at the library, you can use renter's insurance to cover the costs.
Read our complementary article outlining four car insurance tips for students.