Rental properties are always in high demand near universities and colleges. Thousands of students want to live as close to campus as possible, and on-campus student housing isn't the right solution for everyone, nor is there room for everyone to live on-campus. If you own a residential property that is near a secondary education campus or is otherwise located somewhere that attracts a lot of students, it makes sense to consider turning it into a student rental property or converting a suite in your home to rent to students—and of course, that means you need student rental insurance.
Renting to university students is potentially lucrative because even though students don't typically rent long-term, there's always a steady supply of applicants waiting to take the place of anyone who moves out. However, renting to students can come with some risk exposures that make it extra important that you protect yourself and your property with the right student rental insurance. Ontario property owners can count on the experienced brokers at Morison Insurance to find the right insurance options for their unique needs so they can rest easy knowing they have financial protection against the risks that are most likely to befall their properties.
Ontario student rental insurance is a type of landlord insurance that is designed to protect rental property owners from financial loss in the event that the rental property or your belongings on the property are stolen, damaged or destroyed by an insured peril or if the property becomes uninhabitable due to damage caused by the occupant. Also known as student housing or student rental house insurance, student rental property insurance also provides liability coverage for legal defence fees and settlement costs should you be found liable for causing third-party property damage or bodily injury at your rental unit and may include other types of coverage depending on how your policy is written and your unique insurance requirements.
There are actually two types of student rental insurance that offer similar financial protection but are on different kinds of policies. The first is a type of personal insurance that can be added to your existing homeowners insurance policy. This is a good solution for someone who is planning to rent out a suite in their home or who has a second property nearby that they would like to rent out to students. It's also possible that you may be living significantly further away, even overseas, and this type of student rental insurance may still be possible if you have a person in charge of managing the property. If you have a large number of rental properties that you run as a business rather than renting a basement suite or similar on the side, you may need a commercial business insurance policy for your student rental insurance coverage.
Anyone who is planning to rent out a residential property to full-time student tenants should make sure they have comprehensive financial protection from the right student rental insurance policy. That applies to free-standing houses, duplexes, condos, and more, though it's worth noting that there may be some special caveats for renting a condominium. Basically, if you are renting to students, you need to have some type of student rental insurance coverage.
Make sure to let your insurance broker know exactly what type of property you're planning to rent so they can take the necessary steps to confirm that you have complete coverage in your student rental insurance.
Ontario landlord and student rental policies both aim to provide the policyholder, or landlord, with financial compensation in the event of loss or damage, but the difference between the two policies lies in what they aim to do.
A typical landlord insurance policy aims to financially protect your rental property in the event of an insured loss or damage. However, the majority of rental units are for long-term residents who will view the place as their home. If you rent to college or university students, you often have tenants who will only be there for a few years at most and will frequently be away for months at a time. Additionally, as students are often making their first forays into the real world, they don’t have much financial stability or the necessary life skills to provide the best care for the rented space. So, student rental insurance aims to address challenges like higher turnover rates, extended vacancies, and potential property damage associated with renting to students.
If there is a likelihood of students moving into your rental property, make sure to ask your Morison Insurance broker about how you can increase your protection with student rental insurance.
Student rental insurance is not legally required in Ontario. Outside of vehicle insurance, workers' compensation, or any industry requirements for your business, you aren’t required to have any insurance coverage, including student rental insurance. Ontario insurance professionals—and just about anyone else in the rental industry—however, will tell you that it is a very, very bad idea to go without some type of landlord or business insurance protection.
Having some type of property coverage, like student landlord insurance, is typically required by other parties, such as mortgage lenders who are not willing to offer a mortgage unless you've got adequate home insurance and student rental insurance in place. So if you are buying a residence with the goal of renting it out or are planning to refinance a residence you are renting out, without proof of insurance in place like home or student rental insurance, Ontario mortgage providers and other financial institutions won’t lend you any funds. As many Ontarians do not have hundreds of thousands of dollars in cash lying around, this makes having a type of policy like property or student rental insurance in place a necessity. Additionally, while property owners may not be obligated by law to have student rental insurance, that doesn't mean they can afford to go without it.
A rental property is a big investment, and you're literally turning the keys over to near-strangers who may or may not treat it with the same loving care they would give to a property they actually own themselves. When you rent to students, it's important to keep in mind that you may be renting to a group of very young adults who are living outside of their parents' home for the first time, so even if they are tidy and try to take good care of the house, they're not necessarily practiced at all the life skills one needs to properly maintain a home with all due caution, and that increases the chances of serious property damage. And even if you really do have a dream tenant and not someone who views it as temporary accommodations, accidents sometimes happen or disasters occur that no one is to blame for, such as roof damage, sewer backup, or a storm damaging the residence. In those cases, having student rental insurance will ensure you are protected in the worst-case scenario.
When it comes to student rental insurance, Ontario policies can vary quite a bit from policy to policy because they are designed to address the specific needs of the individual policyholder. Some standard types of coverage will definitely be included, such as property insurance, contents coverage and personal liability. However, there are also additional insurance coverages that are well worth considering.
Some of the things you can commonly find in a student rental insurance policy include:
Since student rental insurance is basically a form of property insurance, it makes sense that coverage for the property in question is going to be a part of the policy. If your building is damaged or destroyed by an insured peril such as fire, natural disasters or vandalism, your insurance provider will compensate you with funds to cover the restoration, replacement or repair of the building up to the limits listed on your policy. It's important to make sure your rental house is valued properly according to your student rental insurance policy so you're able to get full replacement costs in the event of a disaster and can have the house rebuilt the same way it was before.
Contents coverage is a specific part of the property coverage portion of your student rental insurance policy. It offers financial protection to repair or replace damaged, destroyed or stolen items on the property that belong to the property owner but are not a part of the house, such as appliances or provided furnishings and décor. It does not cover the tenant's belongings—the tenant must have their own tenant insurance policy to have coverage for their personal belongings and liability. But if there is a kitchen fire, for example, that destroys the unit's stove and other appliances in the kitchen, contents coverage would apply to get those appliances replaced, while the property insurance portion would cover the cost of restoration for damaged parts of the building such as the walls and flooring.
While vandalism and theft are generally covered by basic property insurance on a policy for student rental insurance, Ontario landlords and property owners may need to consider additional protection to be fully insured. Rental properties are at a higher risk of theft and vandalism issues because you, the property owner, are not in the rental unit to keep an eye on things and ensure all due caution is being taken. Additional vandalism and theft coverage can give your policy the boost necessary to offer you financial compensation that will allow you to recover quickly if you are the victim of property crime.
As another basic type of home insurance coverage, personal liability insurance is a type of third-party liability coverage that can be included on your student rental insurance policy that gives you protection against financial loss if you are sued for causing third-party bodily injury or third-party property damage at your home or rental property.
For example, if your student tenant's grandparent came to visit them and slipped on an icy walkway or tripped on an uneven step and injured themselves, they could choose to bring legal action against you to recoup their medical expenses. In this type of scenario, your personal liability coverage on your homeowners or student rental insurance would prompt your insurance carrier to provide you with funds to cover your legal fees and settlement costs up to the liability limit listed on your policy.
When the above are some common inclusions found on student rental insurance, Ontario policies can include so much more. Remember, insurance isn’t a one-size-fits-all solution, so different types of student housing will require a different student rental insurance policy to protect you in the event of a loss, liability event, or property damage.
Some of the other coverages you can include to further customize your student rental insurance policy include:
Make sure you are as detailed as possible when describing your student rental suites to your Morison Insurance broker so that we can get a better idea of your student rental insurance needs. Remember, insurance is here to protect you from costs arising from liability, loss, or damage should the worst-case scenario happen, and you don’t want to be caught off guard with inadequate insurance coverage. Our experienced brokers will help you figure out the type of coverage you need and how much coverage you need when you contact us for student rental insurance.
These are two different insurance products, though it's easy to see why they get mixed up based on their names. Basically, the big difference lies in who is the policyholder and, therefore, the beneficiary of the insurance. Student rental insurance is designed to give financial protection to rental property owners, while student renter or student tenant insurance is held by the tenants, generally the student living away from home, and gives them protection against financial loss. So while both policies are student renting situations, the former is for landlords while the latter is for the renter or the student.
If you are ever concerned about which one you need, just ask your Morison Insurance broker if you need student tenant or student rental insurance.
While you should always protect yourself with landlord, property, or student rental insurance, it's common for rental property owners to include a clause in their rental or lease agreement stipulating that the tenant must invest in student tenant insurance. Having the proper tenant or renter insurance protects the tenants because it allows them to get financial compensation from their insurance provider if their personal belongings are damaged, destroyed, or stolen. It also gives them some personal liability coverage should they be sued and can even provide for additional living expenses in the event of a disaster, such as covering hotel costs after a disaster that renders the rental property uninhabitable so they have somewhere to go temporarily.
But there are also some big advantages to the property owner when their tenants are properly insured. It reduces the chance of a legal or personal conflict during a situation that is bound to be stressful for both parties, and it makes it more likely that the property owner will be able to receive financial compensation in a situation where the tenant is liable for causing damage. Your student rental insurance provider may also require that your tenant be covered by their own renters' insurance policy, so including having proof of coverage for tenant insurance as a condition on the rental agreement will help ensure your insurance provider's stipulations are met.
This is a great question to ask about student rental insurance because the nature of student rentals means there may be periods of time when the property is temporarily vacant.
Many property owners assume their student rental insurance will carry them through those periods, but that's not necessarily the case. If you are renting a basement suite in a house that is covered by home insurance, your home insurance will still apply as long as someone (such as yourself) is living there. If you don't live at the rental property, it's likely a different matter. Vacant properties have increased exposure to certain risks because not only is the property owner not there to monitor the house, but nobody else is there watching over it either. However, insurance companies are aware that rental properties may be vacant from time to time, so they usually make it possible to transition smoothly between student rental insurance and vacant property insurance coverage as necessary in order to protect your property. Make sure to speak with your Morison Insurance broker when the tenancy status of your property changes so they can alter your coverage to make sure you have full insurance protection.
Insurance policies in Ontario are not one-size-fits-all, so their coverages and costs are going to wildly differ. After all, if you have a basement suite you are renting out, why would you have the exact same student rental insurance policy as a landlord with multiple properties that are renting out to students?
Some factors that will impact the cost of your student rental insurance in Ontario include:
Generally, your student rental insurance premiums will be about 15 to 20% higher than a standard home insurance policy due to the increased risks and the higher coverage limits typically required by insurance companies. Make sure to speak with your Morison insurance broker about ways you can reduce the cost of your student rent insurance, as we may be able to find you some additional cost savings.
If you're preparing to venture into the world of student rentals, one of the first steps is to contact the reliable insurance brokers at Morison Insurance. We have the experience and skill to find the ideal combination of student rental insurance coverages for your unique needs and provide the information and advice you need to sleep easily at night knowing you're backed with protection against financial loss.
Give us a call today at 1-800-463-8074 or inquire about a quote online and speak to our friendly brokers about your unique insurance requirements for Ontario student rental insurance.
