Is your aspiring scholar properly insured?

You may be rejoicing now that your kids are off to college or university, and not to put the fear of doom into you, but among all the preparations made was insurance considered?

If you haven't done so, don't panic, but get on the horn to your insurance provider and review your home insurance policy to ensure your aspiring scholar's belongings are adequately covered for theft, loss or damage.

"It is frequently overlooked. Often times, parents are so busy getting the kids sent off that they don't give a thought to (protecting expensive electronics)," remarks Anne Marie Thomas, an insurance expert at InsuranceHotline.com in Toronto.

Thomas is a self-described "insurance geek". Before joining InsuranceHotline.com — Canada's oldest online insurance rate comparison website — she worked for more than 25 years as a broker at various institutions.

"Parents should be contacting their insurance provider to find out what they're covered for and to ask if liability and personal property that's temporarily removed (from home) is covered while their child is at university," she says. "Some policies will extend it while your child is away for up to $5,000 of personal property but some may not. It's never to late to find out. The only time it's too late to buy a policy is after something has already happened."

Tenant insurance for a dorm?

Dave Minor, vice-president at TD Insurance in Toronto, agrees it's commonplace for students and their parents to neglect insurance considerations in the run-up to the first day at school.

Tenant's insurance, a.k.a. renter's insurance, is a smart investment, but according to a recent poll by TD Insurance, 47 per cent of Canadian tenants under the age of 35 don't have it. Moreover, the same poll finds 32 per cent of Canadians in the same age bracket incorrectly believe that they are covered under their landlord's insurance policy.

"I'm sure overlooked is accurate in some cases but it's also a conscious decision in others," he says. "Some people choose to not pursue it or investigate because they assume that they're already covered.

"I was speaking recently with a customer who's a landlord and he finds many of his tenants assume that whatever coverage he has on his building covers them. It's a myth that exists out there for some folks."

What items typically get stolen?

According to a Statistics Canada report on crime, in 2011, theft of items valued up to $5,000 along with breaking and entering accounted for almost 60 per cent of police-reported property crime in Canada.

"Common items claimed as a result of theft are typically high in value and portable, making them ideal for thieves seeking easy cash sales," warns Patricia Stirling, director of insurance underwriting at the British Columbia Auto Association (BCAA), in a statement. "Many of those high-priced items are what students typically take with them when they're away at college or university."

TD's Minor says technology is covered in most home insurance policies and in a renter's policy it wouldn't be unusual for mobile devices to be covered for up to $5,000.

"When you think of students especially, their contents don't usually add up to a lot of value. We're usually talking second-hand furniture, clothes, and a cheap TV. But from a technology perspective, most students come equipped with a laptop and a smartphone and that can add up to a lot of money," he says. "This is one area were students need to be more cognizant of the need for tenant's insurance."

But the bigger area of concern for students — nay, make that parents with kids living in off-campus apartments or in private shared living arrangements -- is the risk of residential mishaps such as a fire or an injury that occurs during the one of many keg parties that are likely to unfold.

"It's not just possessions (that should be covered). What's more overlooked than anything is liability," Thomas says. "When students are either in residence or sharing a house with other students, if something happens to someone while on that property and they hurt themselves, they could sue you.

"This is more important than the replacement of a laptop or a cellphone. If you get sued, we're not talking about a couple thousand dollars anymore."

Minor and Thomas offer their advice to help parents ensure their student and their belongings are covered properly:

• Most home insurance policies extend liability to children while away at school but check with your insurance provider to see if your child qualifies for coverage under your existing policy and don't procrastinate.

• Make a complete inventory of all the items your child will be taking with them, including clothing and furniture. If you've long lost the receipts for said items, take photos or a video recording of the belongings.

• If your child is living off of campus, get them to buy tenants insurance as it will adequately cover all of the student's personal property and provide extensive liability coverage at an affordable cost.

• Understand your liability coverage and make sure coverage for personal liability is extended to your child through your homeowner's policy.

Not sure where to start in your search to find an accredited insurance broker in your neck of the woods? Surf to the Insurance Brokers Association of Canada's website for help doing so.