Don't forget Tenant Insurance

Welcome to the Do Education Blog. This blog is here to help all international students & immigrants to study & settle in Canada.

Today's topic is about the different kinds of "insurance" available and required while you are studying in Canada. Depending on where you decide to live or stay in Canada depends on whether you need to have any insurance. If you rent an apartment then you will need to get tenant insurance.

I just finished consulting a young Korean women who is leaving in April to study in Canada for a year. She plans to rent an apartment near Toronto. What she didn't know was the kind of insurance that was available. I explained to her that she can buy a "tenants package" from a general insurance provider. A tenants package will cover her if something happens to her property inside of her apartment.

• If the apartment building burns down, the insurance company will replace everything.
• If someone steals something from her house, the insurance company will replace it.
• If someone gets hurt & decides to sue for damages, the insurance company will pay any law suits.

A general insurance provider will be likely be a broker that will sell insurance from many insurance companies. A good insurance broker will know the best insurance company that specifies in tenants/homeowners insurance. It should cost about $8-20/month.

Make sure you ask these questions to any insurance broker:

1. Do I have enough insurance to replace all of my possessions?
2. Do I have enough insurance to protect my assets?
3. What kind of replacement costs do I have?
   3.1 Cash Value Policy: This coverage pays the cost to replace your belongings minus depreciation.
   3.2 Replacement Cost Policy: This coverage reimburses you for the full current cost of replacing your belongings.
4. Is there anything that is not covered in this policy for any reason? i.e. act of god, floods, etc.
5. Do I need to take pictures of anything I own? i.e. If you own a $1000 jacket, take a picture of you wearing it to prove you own it. Take a picture of it in your house.

If you stay with a homestay host, ask your homestay host if your personal belonging are covered under their current homeowners insurance package. Ask them to call their insurance broker to verify that you as a student is covered under their current policy. If not have them put you on as staying with them.

Another form of insurance that you will need by law is car insurance if you plan on buying a car. Driving a car in Canada is safe & usually easier then other third world countries. But, make sure you have car insurance. Ask the same similiar questions to the same insurance broker. It is highly illegal to drive a vehicle in Canada with out insurance. If the police stop you, they will always ask for your driver's license, vehicle registration & insurance. If you don't have valid insurance they will call a tow truck & impound your vehicle until you can prove you have valid insurance. There is also a very expensive fine that you will get. It could be $1000+, I know in Alberta it starts at $2500.

Don't be afraid to contact at least 3 different insurance brokers. Find the different insurance premiums. But remember, JUST BECAUSE IT IS CHEAPER, IT DOESN'T MEAN YOU HAVE ALL THE PROPER INSURANCE YOU NEED. BECAREFUL!

Good luck & if you need help finding the right tenant insurance or car insurance package then contact me either on this post or you can email me. steve@doeducation.biz

Until next time,

Steve @ Do Education

http://www.doeducation.biz/