As students settle into a new academic year, insurers are raising concerns over the low number of young renters holding tenant's insurance.
According to the Insurance Bureau of Canada (IBC), many students underestimate the financial risks of living away from home, leaving them exposed to losses that could prove costly.
Students under the age of 21 may in some cases be covered under their parents’ or guardians’ home insurance policy, even while living off-campus. However, coverage varies and is not guaranteed, making it important for families to review the terms of their policy. For those without parental coverage, tenant’s insurance offers a safeguard against risks such as fire, theft, or accidental damage.
Tenant’s policies also extend to liability coverage, protecting renters if a guest suffers an injury on their premises. Insurers warn that without such protection, students could face medical or legal expenses that would fall directly on them. In addition, the policies typically provide compensation for additional living expenses if a rented property becomes uninhabitable after a covered loss, such as fire or flood, helping students secure temporary accommodation.
Despite these protections, uptake of tenant’s insurance among students remains limited, the IBC said. Brokers attribute the low adoption rate to lack of awareness and cost concerns. Yet, policies are often priced between $15 and $25 per month, making them one of the more affordable insurance products. By comparison, the cost of replacing a laptop can exceed $1,200, and temporary housing after a disaster can quickly reach several thousand dollars.
Insurers stress that the value of the product extends beyond belongings. For many, tenant’s insurance represents a first step into the broader insurance market. Industry leaders view student renters as an underserved segment and a potential long-term customer base, with early adoption creating opportunities for stronger engagement in later life.
For students renting with roommates, the IBC advises that each tenant should purchase their own policy, as coverage does not extend across individuals. To ensure smooth claims, insurers also recommend maintaining a home inventory, supported by photos or videos of personal belongings.
With affordability concerns shaping financial decisions for many young renters, insurers are positioning tenant’s insurance as a low-cost but essential protection. Industry representatives argue that while students may see it as optional, the absence of coverage can create financial burdens that far outweigh the monthly premium.
