The Basics of Student Rental House Insurance

So, your child is going away to school. It's a big step, and one that likely comes with its share of both excitement and anxiety on your part, as your child tackles these new challenges and responsibilities on their journey to adulthood.

As you prepare them for getting their first apartment as a student, it's time to think about the essentials. And one essential that's often overlooked? The right tenant insurance (also known as student rental insurance or student renters' insurance) for their rental unit.

The cost of tenant insurance for your child will vary depending on several factors, such as the location of the rental, the insurance company you choose, and the coverage amount. Most insurers offer free quotes, making it easy for you to find the right fit for your child's needs.

At TD Insurance, we offer a special tenant insurance product that is geared towards full-time students specifically. It’s a great option if you're looking to purchase student rental house insurance for your child — and if the policy is in your child's name, it could help your child foster a sense of independence and encourage financial responsibility while they're away from home.

Getting this insurance is easy. You or your child can speak with a licensed TD Insurance Advisor who will help explain the coverage and answer any questions either of you may have. 

If you currently have a home insurance policy with TD Insurance, your policy could extend similar coverage to your child while they’re a student temporarily living in a rental unit away from home, as long as they remain a dependent of yours. This includes coverage for their personal belongings and liability.

Available limits for belongings depend on the type of policy and coverage you have, so make sure you take the time to understand the coverage in your current home insurance policy.

Here are some things to consider:

• If your child moves away permanently and is financially independent, then they will need to set up their own home insurance policy.
• Only your child is covered by your policy. If their rental situation involves multiple roommates sharing one property, everyone should be named on the lease and each roommate should have their own insurance coverage. Make sure your child keeps a list of their belongings in their student rental home and an estimated value of expensive items to ensure you have enough coverage in the event of a claim.
• Have your child keep records, like photos, videos or receipts in a secure location, pertaining to particularly important or valuable possessions. It’s a good idea to ask them to send you a copy too, for your records.

In addition to obtaining student rental house insurance, there are still several factors to consider for your child's big move. Here are some common questions you may have as you help your child prepare for life on their own:

When your child signs the lease, they'll be entering into a formal contract with their landlord—and by signing the lease, they become responsible for any damage they do to their rental unit.

Because the lease agreement is a binding contract, it's important for your child to fully understand the terms and conditions in the agreement. These terms and conditions outline both the landlord's and the tenant's rights and responsibilities—which means your child, as the tenant, will be responsible for any damage they cause to the rental property.

While there's no law that makes tenant insurance mandatory for renters, having tenant insurance can help cover certain damages your child is responsible for under the terms of their lease and any unexpected results that might occur as a result of a covered loss. And landlords often require tenants to obtain tenant insurance as a condition of the lease, making coverage essential if your child wishes to rent the house or unit.

A deposit is a sum of money paid to the landlord before or at the time the lease agreement is signed. Common types of deposits include rent deposits, security deposits, key deposits, and pet deposits. The purpose of a deposit is to help cover any future damages that might happen—for example, a key deposit covers the cost to replace a damaged or lost key or key fob.

However, it's important to keep in mind that the types of deposits a landlord is permitted to ask for, as well as the amount of the deposit, varies from province to province. In Ontario, for example, the only deposit a landlord can legally ask for is a deposit for the last month's rent, which means other types of deposits are not permitted.¹ Make sure your child understands the rental deposit laws in the province they'll be living in, so they don't end up paying more than what is legally permitted.

If your child is a student and sharing a unit with roommates, it may be beneficial to have a co-tenancy agreement. A co-tenancy agreement spells out responsibilities and liabilities for each person sharing the unit. This can include the payment of utilities, repairs, rent payments, and other expenses. It sets the expectations ahead of time and ensures that everyone is on the same page.