Owning a student rental house in close proximity to a university or college can be a steady source of income and a valuable piece of real estate that appreciates over time. But to ensure that your investment doesn’t cost you money – or worse, put into bankruptcy – you need to protect yourself with student rental house insurance.
Liability Risks that Come with Owning a Student Rental House
Renting to students comes with several well-known risks that you are already aware of such as unauthorized guests staying in your unit, a student tenant not paying the rent or your tenants constantly being noisy and disturbing other residents of the neighbourhood. However, renting a house for students also comes with liability risks that could land you in court and force you to pay out-of-pocket for the exorbitant costs associated with a lawsuit. A few of those scenarios include:
- Someone, whether they are a tenant or not, trips and falls down the stairs of your property, is injured and, rightly or wrongly, decides to sue you
- Despite your rules to the contrary, a party is thrown at your rental house and neighbouring houses or vehicles are vandalized
- A burner, space heater or cigarette in your student apartment starts a fire that quickly spreads, causing damage to your property and others resulting in major repair costs and temporary housing expenses for residents of those properties. Their insurance companies take you to court for those costs
The Commercial General Liability Insurance policies brokered by ALIGNED for our student rental house insurance packages are written specifically to address the risks that come with student tenancies and cover the owners/landlords for the costs that come with legal liability. Those costs can include:
- Repair costs and medical expenses
- Costs to defend a lawsuit including lawyer’s fees
- Costs to settle a claim to cut your losses
- Damages awarded by the court
Whether you’re a professional leasing company or a private citizen trying to make a little money on the side, few businesses or people can afford the costs of construction repairs or litigation. Keep in mind that even if you’re served with a frivolous lawsuit, the costs to answer the claim(s) are still more than the average company or individual can afford to pay.
Other Risks that Come with Owning a Student Rental House
Legal liability isn’t the only potential source of loss you could experience when renting out a student apartment. Our student house for rent insurance plans will also include Commercial property insurance tailored to your specific unit. Coverage can include the costs to repair the building and replace the contents following a natural disaster, lost rental income and damage caused by tenants.
ALIGNED – Commercial Insurance is All We Do
ALIGNED can save you time, money and headaches because of our years of experience specializing in commercial insurance. Contact an ALIGNED advocate for a free quote in minutes or get started now by using our online tool.
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