If you are a landlord, you know that you have many expenses and monthly bills. Your monthly mortgage payment is likely to be your top priority, but you cannot overlook or forget other fees. It is essential you draw up an overall budget when planning your business activities, and one cost you cannot ignore or dismiss is insurance for student rents.
Not all landlord insurance is suitable for student accommodation. While landlords need to be aware that standard home insurance isn’t appropriate when letting property, some companies view student letting as a separate entity from traditional letting.
Not every standard rental insurance is suitable for tenants
It may be that firms believe there are more significant risks associated with student letting, and this is why some student landlords need to obtain specialist insurance that adequately covers their let. If you are in any doubt as to whether your provider covers you, please contact them and state that you let to students.
Some landlords withhold information about their rental property to obtain more affordable coverage, but this can be detrimental. If an insurance provider finds out a landlord withhold essential details on their application, the cover may be null and void, which means a landlord will receive no support when making a claim. This outcome needs to be avoided, so it is always best, to be honest when obtaining letting insurance.
The three main options student landlords should consider when looking for insurance are:
· Property Owners Liability protects a landlord against claims made by a third party, with cover for losses and pay-outs if an application is successful
· Building and Contents Insurance protects if your building is affected by elements like fire and flooding. Content insurance isn’t always offered as standard, so make sure this is included and be aware that it refers to the landlords’ contents, not contents of the tenants, making it best for landlords who offer furnished properties
· Tenant Related risk, which includes malicious or accidental damage by tenants and loss of rent cover
Take some of the pressure out of being a landlord
For many landlords, the assurance of knowing monthly rent payments are covered, even if the tenant cannot pay or moves out is a great comfort. Many landlords face challenges in meeting their monthly rental payment if a tenant misses a payment, so this insurance is often welcome. Ideally, you’ll never need to call on this style of protection, but if you do, you will be delighted you have it in place.
You need to remember many students in your accommodation are living away from home for the first time. It is, therefore, reasonable to assume that there will be damages or issues to resolve. Having adequate insurance in place removes a lot of the risk involved with being a student landlord.
If you are keen to let to students, but you need guidance on how best to approach the market, please contact Student Circle. We are highly experienced in this market, and we have helped many Coventry landlords let to local students. Insurance is a necessary component when letting to students, and you need to ensure you have sufficient student insurance in place.