If you own a property located in close proximity to a university, letting it out to students is a fantastic opportunity to ensure that the rent keeps rolling in. If you do find yourself letting your property out to students, it’s important to understand that you will need to take out a student landlord’s insurance policy covering you for multiple occupancy. To help you get your head around the concept, we’ve put together this useful guide that covers everything you need to know…
What is student landlords insurance?
As the name suggests, student landlords insurance is taken out when a property is being rented by a group of students. Landlords insurance is required by law so if you’re letting your property to multiple students, taking out a student specific package is the logical thing to do.
Does it include contents insurance?
Contents insurance is not usually included in standard policies which means that if you want to protect your furniture and other homewares, you’ll need to take out an additional contents insurance policy. It really depends how much value you place on your possessions and whether or not the deposit will be enough to cover any damage.
Does it include rent loss guarantee?
A standard student landlord’s insurance policy does not cover you for loss of rent. Many landlords letting to students do choose to take this out as an extra due to the fact that students do tend to be considered more at risk of missed rental payments.
What about eviction?
One of the major benefits of taking out a comprehensive student landlord’s insurance policy is that it means you are covered for legal expenses and loss of rent in the case of eviction. It is considered an extra in most policies however if you do face any issues, you can rest assured that the insurance company has the knowledge and resources to deal with everything quickly and smoothly.
How much does it cost?
The cost of student landlords insurance varies from provider to provider however in general, you should expect to pay around £150 to £200 per year for a comprehensive policy covering buildings insurance, contents insurance and rent loss guarantee. It always pays to shop around, with online quote compare sites such as Compare Crazy offering a quick and easy way of finding the best deal.
Is it worth it?
At the end of the day, if you are renting to multiple occupants you’re required by law to take out a basic landlord’s insurance policy. Adding extras onto your student landlords insurance policy depends on how many risks you are willing to take, how much you trust your tenants and whether or not you place value on peace of mind.