Insurance For Student Housing

Insurance Policies to Consider For Student Housing

1. Student Landlord Building and Contents Insurance

Student landlord building and contents insurance offer a variety of coverages to landlords who rent out their properties to students. This type of insurance covers all the essential components that are required to protect the property of the landlord as well as their income stream in case the students fail to pay their rent. As a landlord offering student housing, you will be protected from all the challenges that come your way. For instance, if a tenant's keys are stolen or misplaced, this insurance would cover lock replacements, and you won't have to pay for them from your own pocket.

Some other situations that are covered under this insurance include: 

a. Loss of Rent

If your student housing is uninhabitable due to a hire, mold growth, flood, or any other problem, you could be deprived of the rent you would get if the students were inhabiting it. Student landlord building and contents insurance cover the loss of rent for these situations. The indemnity period can be set to three years from when you stopped getting the rent. Some insurance providers also offer the costs of alternative accommodation for students for this duration. 

b. Property Owners’ Contents Liability Coverage

You can also include property owners’ liability insurance with your contents insurance to cover for damages that are done to the tenants from different accidents, such as water leaks or furniture falling. You can get it for no additional cost, depending on your insurance provider. 

c. Damage and Malicious Acts by Tenants

The worst nightmare for a landlord renting out student housing is getting crazy tenants who cause damage to their property. Although your standard landlord policy would cover for any damage or vandalism caused by the general public, it wouldn’t cover for the damage that is caused by your property’s tenants. You can get coverage for damage to your property caused by your tenants with your student landlord building and contents insurance policy. Ask your insurance provider for a tailored solution.
 
d.  Coverage for Accidental Damage Caused by Tenants

Accidents can happen on any property. Your tenant putting a nail in the wrong wall that results in a bursting pipe is a great example of accidental damage. Your student landlord building and contents insurance policy cover any major accidental damage that is caused by tenants so that you don't have to pay the expensive repair costs.

e. Overland Flood and Sewer Backup Protection

This type of coverage protects your property from any water damage. Since water damage is one of the most common types of damage on a property, there are a lot of claims for it. If there is a malfunction in your municipal sewer line and it forces sewage into your building, you may have to pay huge repair costs that may cost thousands of dollars.

However, if your student landlord building and contents coverage has sewer backup endorsement, it would cover these repair costs, and you wouldn't have to pay a penny from your pocket. The same is the case when heavy rainfall or flood causes water damage to your property. Overland flood protection would cover all the damages caused to your student housing property.

2. Tenant Insurance for Renters

Most home insurance policies cover damage or loss of the main items in one’s house, including appliances, the physical structure of the building or house itself, and the pipes. Nearly all landlords have a home insurance policy that covers these items. However, most of these home insurance policies do not cover the personal belongings of the tenants, such as entertainment equipment, jewelry, furniture, and all the other expensive items they have. 

If someone in the student housing gets injured, the landlord’s insurance may not cover the medical expenses of the injured person. Moreover, the landlord could sue the tenant students for any damages to the building made when they were residing in it. Having tenant insurance ensures that students have financial protection in such cases.

The tenant insurance for renters covers all the personal belongings of students against theft, property damage, loss, fire, and similar scenarios. It protects both the belongings that are in the house and those that are away, such as when the renter is out. If during your stay the house becomes uninhabitable due to, let's say, mold growth, the tenant insurance will cover the cost of mold remediation and also cover the living expenses for a temporary space until you can move back to the house.

Moreover, if you accidentally injure someone or damage their property, civil liability coverage would offer you financial protection if you are sued. It is your main line of defense against lawsuits and claims for property damage and bodily injury. 

Although you are not legally required to have tenant insurance, it is great if you have one. It would cover all the unexpected expenses that may come your way if you are renting student housing. It is especially ideal for students as they don't have money to spare in cases of accidents. Moreover, home repairs are extremely costly, and you may find yourself in debt if you have to get home repairs done from your own pocket.

3. Landlord Portfolio Insurance 

A landlord portfolio insurance is for landlords who have several student housing properties rented out to students. If you have multiple properties rented out, you have a lot of risks involved. A landlord portfolio insurance covers any damages, claims, and challenges that come your way when your multiple properties are rented out to students. 

A landlord portfolio insurance covers:

All the risks, including material damage and loss to your buildings and their contents.

• Students benefit tenants.
• Costs involved in rehousing your tenants in case of insured damage that occurs to the property.
• Loss of rent after your property is uninhabitable due to a problem. 
• Property owners’ liability insurance.
• Employers’ liability insurance for gardeners, cleaners, handymen, caretakers, and other repairmen. 
• Coverage for unoccupied properties. 

4. Commercial General Liability Insurance

Commercial general liability insurance, also known as premises liability coverage, covers you from any financial loss in case you are liable for third-party bodily injury or property damage lawsuits that happen at your student housing property. For instance, if your tenants have a guest who ends up slipping or falling on your property and needs medical care, they may hold you liable and sue you for bodily injury. Commercial general liability insurance would ensure that you are covered for any lawsuits due to property damage or bodily injury to the general public.

5. Home Emergency Coverage

Home emergency coverage protects you in case of any unexpected incidents such as boiler breakdowns, electrical supply failure, plumbing leaks, loss of keys, and similar situations. It is a peace of mind policy for landlords renting out student housing who can get coverage for emergency repairs that can otherwise cost thousands of dollars. This type of coverage ensures that all the covered issues on your property are fixed as soon as possible and further damage is prevented.

This type of policy covers plumbing, electrical, drainage, security, central heating, boiler, and any other technical emergencies. However, it does not cover general issues and accidents in other assets of your house. It also does not cover any wear and tear due to the appliances not being maintained or serviced for a long time. It only covers issues that are an emergency. For instance, if there is a leak on your property that does not cause any damage, it won't be an emergency and, therefore, is not covered by this policy.

6. Equipment Breakdown Coverage

Equipment breakdown coverage offers financial coverage for costs related to repairs or replacement of different types of machinery and appliances on your property. This can include repair and replacement costs of kitchen appliances, heating and cooling systems, laundry facilities, ventilation systems, and any other electrical appliances that break down. The repair or replacement costs of these appliances can be extremely high if you have to pay them from your own pocket. But an equipment breakdown policy would cover these costs. This type of policy is essential as equipment breakdowns are quite common in rented properties.

7. Catastrophe or Natural Disaster Insurance

Catastrophe or natural disaster insurance protects your property against natural disasters. If your property is in an area where floods and natural disasters are common, you should definitely get this insurance policy for your property. Natural disasters like floods and earthquakes are quite devastating. They can literally rip your property’s structure away, requiring you to build your property from the ground up. Since this is a high-cost coverage, they are usually excluded from standard policies. 

Catastrophe insurance offers you financial assistance and coverage in case of any natural disaster, so you don't have to pay for the repairs from your own pocket.

8. Umbrella Policy for Landlords

An umbrella policy for landlords offers them additional protection against business and owner liability, libel and slander, and injuries of tenants, vendors, guests, and the general public. If you have maxed out on your general policy limit, an umbrella policy for the landlord will cover all the additional costs that come your way. It comes in handy when landlords are faced with expensive lawsuits and settlements.
 

How Much Does Student Housing Insurance Cost?

The cost of student housing insurance depends on several factors, including:
 

• Your experience as a rental property owner
• The condition and age of your property
• The location of your student housing property
• The annual and projected revenue
• The coverage selection for your insurance
• The number of student tenants and rental units
• The maintenance and risk management practices you currently follow on your property
  
  

Most student housing insurance policies offer coverage of $2 million to $5 million. Depending on your selected insurance provider, you can select the limits and coverage options included in your property. 

What Properties Are Included in Student Housing Insurance Policies?

The types of student housing properties that are included in student housing insurance policies are:

• Single residential properties
• Large multi-room student housing complexes
• Duplexes and triplexes that are converted from private residential properties
• Condominium units
• Rooming houses
  
  

Cities with many universities and colleges have a great investment opportunity for landlords as they can rent out their properties as student housing. However, student housing properties require specialized insurance, and every student housing landlord should have comprehensive policies because:

• They are dealing with young adults who may not be very responsible in taking care of the house.
• Student rentals need a lot of repairs and maintenance as they have different tenants every few years.
• Student housing tenants do not have much knowledge when it comes to home maintenance.
  
  

Therefore, student housing insurance would come in really handy in offering financial assistance and coverage for accidents, repairs, injuries, and natural disasters.