Student Rental Insurance in Ontario

Insurance Solutions for Student Housing Owners
Renting your property to students in colleges and universities is a great idea to get additional income. You get a steady cash flow from students that are looking for a place to stay during their academic semester. The only issue is that renting your property to students can be risky, as you can’t guarantee that they will act responsibly during their stay at your property. The solution is simple. You can get a paycheck without worrying about property damage. All you have to do is get student rental house insurance coverage. We provide student rental insurance for landlords and property owners to help them protect their investments. Acumen Insurance can help you find specialized solutions that fit your needs.
Get a QuoteWhy Choose Acumen for Student Rental Insurance in Ontario?
- Instant Quotes: Once you complete your application, you can get an instant free student rental insurance quote. You don’t have to wait in a queue or do mathematical calculations to get an estimated insurance premium.
- Competitive Pricing: Get broad coverage at an affordable price. No need to break the bank to protect your investment from damage. We offer the coverage you need at a price you can afford.
- Advisory Claims Support: We give you advice about deductibles, premiums, making claims, and more. We want you to make the best decision because we work in your best interest.
- Fast Policy Documents: Get your policy documents within 24 hours of completing your application. Get easy access to your documents and start protecting your property in no time.
What Are the Risks That Landlords Face When Renting Student Houses?
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High Turnover Rates:
Students stay at the rental property for the duration of their academic year, maybe as little as one semester at a time. That means you will keep changing tenants throughout the year, leading to inconsistent maintenance and property wear. Each time a tenant leaves, you need to clean, repair, and repaint before leasing to other students.
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Unpaid Rent:
Students usually pay the rent out of an allowance or a side job, which means that their income is unsteady, so it will be difficult for them to pay the rent on time every month. In other cases, students may drop out of school mid-term without paying their due rent.
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Property Damage:
You will come across many students who are renting for the first time. That inexperience may lead to accidental damage, like spills and broken furniture. Moreover, they may neglect to report leaks and maintain cleanliness, leading to plumbing issues and other problems.
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Liability claims:
Liability claims may arise from accidents, like slipping and falling or any injury sustained to tenants or their visitors. This may be common in student rental houses because of frequent student gatherings and parties. If someone is injured in a party thrown by a student, you may find yourself held responsible.
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Fire Hazards:
Improper use of appliances by inexperienced students may lead to a fire or damage to cooking equipment. Moreover, a common mistake they make is plugging multiple devices into one power outlet, which may lead to an electrical fire.
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Vandalism:
Students or their guests may vandalize your property during parties when they’re intoxicated or in a fight. A common act of vandalism to student rental properties is drawing graffiti, which you may need to pay to remove.
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Subleasing issues:
Some students may sublease their rental property to others without letting you know, increasing the chance of property misuse. Also, subleasing may lead to an overcrowded property, which strains plumbing, heating, and other systems, leading to higher maintenance costs.
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Noise complaints:
Loud parties might disturb the peace of your neighbours, leading to noise complaints and fines. These noise issues could tarnish your reputation in the neighbourhood and with local authorities.
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Insurance Gaps:
Many students don’t have a tenant insurance policy, so if they cause damage, you may find yourself responsible for paying out-of-pocket expenses to repair.
What Does Student Rental Property Insurance Cover?
A standard student rental house insurance policy in Ontario includes these coverages:
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Property Damage:
If your property is damaged by fire, vandalism, or natural disasters, your insurance company compensates you with money that should cover restoration, replacement or repair up to a certain limit. If the property needs to be rebuilt due to severe damage, you get compensated with the replacement cost value.
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Contents Coverage:
This covers damage or loss to the contents of your student rental house, like the furniture, appliances, and decor. However, it’s important to note that it only covers the items that belong to you, not the tenant’s personal belongings. Anything that belongs to the student is protected by student renters insurance. For example, if a fire destroys your couch, the floor, and the tenant’s sports equipment. Your couch will be covered by the contents insurance coverage and the floor will be repaired under property coverage. The renter needs their own tenant insurance policy to cover the sports equipment.
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Personal Liability Coverage:
Third-party liability coverage pays for any injury that happens to the tenant, their visitors, or damage to their properties. For example, if a visitor slips on a broken step and breaks their leg, you may be liable to pay for their medical expenses. If you accidentally cause damage to a property of the student’s, like their laptop, for example, you may need to pay for its repair costs.
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Loss of Rental Income:
If your property is so damaged that it’s considered inhabitable, it will remain vacant until it’s fixed. This insurance coverage compensates you for lost rental income so you still get a monthly paycheck while it’s repaired or rebuilt.
Additional Coverage for Student Rental House Insurance
- Extended Unoccupancy: Compensates you for the time when students are away on vacations between their academic terms or holidays, up to a certain number of days.
- Legal Expenses: Helps with legal costs associated with disputes, such as pursuing eviction, recovering unpaid rent, or other legal actions related to your rental property.
- Rent Guarantee: If the tenant falls behind on rent, this coverage compensates you with the rent amount.
- Accidental and Malicious Damage by Tenants: Provides financial protection if your property is damaged by the tenants, whether intentionally or accidentally.
How Much Does Student Rental Insurance Cost in Ontario?
The cost of student housing insurance for landlords varies based on several factors, like the property’s location, size, value, coverage limits, and the insurance company’s risk assessment, associated with student tenants. Landlord insurance policies have premiums that are 15% to 20% higher than standard homeowners insurance. For student rental properties, premiums may be higher because of the potential increased risks, like higher tenant turnover and property damage.
Get a QuoteFactors that Influence the Cost of Student Rental House Insurance
- Property Location: Areas that are more susceptible to natural disasters and/or crime get higher premiums, compared to other areas.
- Property Size: A larger house with more bedrooms costs more to insure than a small apartment
- Property value: A home that is more valuable and more expensive to repair or rebuild gets more costly insurance costs.
- Coverage Limits: Increasing your coverage limits guarantees more protection but at a higher price. Most landlords carry between $2 million to $5 million coverage limit.
- Deductibles: The deductibles also affect your premiums. Getting a higher deductible amount decreases your premiums. However, you need to be sure you can afford to pay the deductible out-of-pocket before increasing it.
- Claims History: Having previous claims signals to insurance companies that you’re more likely to file more in the future, driving them to increase your premium amount.
- Safety Features: Installing security systems, fire alarms, and other safety measures may qualify you for discounts.
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How to Get Cheap Student Rental Insurance in Ontario
- Increase Your Deductible: Raise your deductible amount to save on your premium, but make sure you can afford the deductible when you need to make a claim.
- Bundle Policies: Insure multiple policies with the same provider, like landlord insurance with auto or home insurance, to qualify for a discount.
- Improve Property Security: Install security cameras, alarm systems and good lighting and your property will be less risky to insure to potentially get a discount.
- Regular Property Maintenance: Keep the property in good condition. Fix repairs quickly and comply with safety regulations and you will have fewer issues that lead to claims.
- Screen Tenants Well: Do background checks for tenants. Leasing to responsible tenants may reduce the chance of property damage or liability claims.
- Shop Around and Compare Quotes: Insurers offer different rates. Get multiple quotes], compare and choose the most budget-friendly price without compromising coverage.
- Review Policy Coverage Levels: Choose coverage that matches the actual value of your property and potential risks. Avoid over-insuring and paying for coverage you don’t need.
- Have a Good Claims History: Limit the number of claims you file. Pay minor repairs out of pocket to keep a good claims record.
Additional Tips for Student Rental Landlords
- List your property in university directories. On the university’s main website, there is usually a section for students wishing to rent off-campus. Listing your property there is a good idea to get the word out to students.
- Students only stay in the rental property for 8 months during the academic year. However, some students stay during summer for courses or other activities. So, it’s better to make the lease agreement last for 12 months to decrease turnover.
- Renovate your space to provide a nice place and get a higher rent. Using durable materials when renovating might decrease your premium.
- Get different references from tenants before leasing the apartment to ensure they are responsible.
- Require the student to co-sign the lease agreement with a parent or legal guardian. That would be helpful in case of a liability claim.
- Require the renters to have student tenant insurance. You can make it a requirement in the lease contract.
- Do monthly inspections for the property’s exterior and semi-annual inspections for the interior.
Should Students Get Renters’ Insurance?
Landlords and property owners aren’t the only ones who need to get insurance for their properties. Students also need coverage. Here’s why:
- Students need to protect their assets from loss, damage, and theft. Burglaries are common in areas of student accommodation, which is why it’s important to insure your valuable belongings. For example, if a student loses their laptop, a very important tool for college, they may not be able to afford a new one.
- Student renter’s insurance is fairly affordable. Premiums can be as low as $5 per month, depending on the coverage limits and the insurance provider. As a student, you can pay very little and still be able to get protection.
- Tenant insurance also protects you if you’re found liable for bodily injury or property damage under the third-party liability coverage.
Student Rental Insurance FAQs
No, student rental insurance isn’t mandatory for landlords. However, it’s recommended for property owners to have to protect their investment against many types of damages. Renting your property to students comes with many risks, like liability claims and property damage.
Here are some tips for landlords to reduce liability risks:
- Address any repairs promptly to prevent accidents.
- Install smoke detectors, carbon monoxide detectors, and adequate lighting in common areas.
- Require renters to have tenant insurance coverage.
- Conduct regular inspections of your property to make sure it’s safe and in good shape.
- Make sure the lease agreements clearly outline the tenant’s responsibilities.
Yes. Tenant insurance isn’t mandatory, but landlords can add it as a requirement in their lease contracts. If the tenant signs the contract, they are obligated to carry insurance. Failure to comply is considered a breach of contract.
Yes. Student rental insurance covers accidental damage to rental properties. That means if the property is unintentionally damaged by the tenant, the insurance company handles the repair costs.
No, both serve different purposes. Student rental insurance is for landlords who lease their property to students. It covers building structure, landlord-owned contents, liability, and loss of rental income.
On the other hand, student tenant insurance covers students renting a property. It covers the tenant’s personal belongings, provides liability protection, and may include additional living expenses if the rental unit becomes uninhabitable.
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