Toronto, ON (Aug. 5, 2013) – Next month, many Ontario students will be moving away from home to university and college campuses across the province for the first time. The Insurance Brokers Association of Ontario is reminding Ontario parents to review their insurance policies with their broker to ensure their coverage extends to their child�s new residence.
A common blunder is that many parents assume their current policy extends to their child. The reality is that policies vary between insurance companies. Contacting your insurance broker prior to your child leaving for school is essential in ensuring they are protected if something were to happen.
�Step one is for the parent and student to assess the content coverage they will have. While some companies have a limit on this, others will measure the contents limit under the parent�s policy,� said IBAO CEO Randy Carroll. �Depending on the amount of personal property the student brings, there could be a large underinsurance exposure.�
Parents also need to review their liability to consider how a claim situation would affect their policy.
Parents and students should review the following questions with their insurance broker:
- Does the parent�s liability limit automatically extend to the student�s new residence?
- Do they have to live in the actual post-secondary school dorm facilities/accommodations or is any apartment or home covered?
- Does the insurer require the name of school or address of the student�s location?
- Would the normal policy deductible still apply?
- If the parent�s policy has already had claims against it, would a claim at the student�s location jeopardize the carrier�s willingness to continue coverage? If so, perhaps a tenant�s policy for the student may be advisable.
The Insurance Brokers Association of Ontario is a �not for profit� association that represents and serves the interests of over 12,000 independent Property & Casualty Insurance Brokers in the Province of Ontario. For information about IBAO, visit www.ibao.org or www.ibao.org/blog to receive timely news and information updates.
SOURCE: Insurance Brokers Association of Ontario