Get cheap student rental house insurance quotes for free.

What is student rental house insurance?

Student rental house insurance is a specialized form of landlord insurance designed for property owners who rent to post-secondary students. It provides protection for the building itself and includes landlord liability coverage, which safeguards you if a tenant or visitor is injured on the property or if you’re found responsible for property damage.

Because student housing often involves higher turnover rates, more wear and tear, multiple unrelated tenants, and vacancy periods during school breaks, insurers view these properties as higher risk.

What student rental house insurance includes

A robust policy ensures you aren't left paying out of pocket for damages or legal fees. Student rental property insurance typically includes:

• Commercial property: Commercial property insurance protects the physical structure of the home (walls, roof, floors) against insured perils like fire, wind or hail. It also covers items you own within the rental unit, such as appliances, light fixtures, or furnished items provided for the students. This won’t cover your personal belongings, however, such as your clothes or jewellery.
• Landlord liability: Covers legal costs and damages if someone is injured on the property.
• Commercial general liability (CGL): General liability coverage offers financial protection if a tenant or guest is injured on the property and you are found legally responsible.
• Business interruption: Also known as ‘loss of income’ coverage, business interruption insurance protects you if a covered claim (like a fire) makes the unit uninhabitable by reimbursing the lost rent while repairs are being made.

Recommended add-ons for student rental house insurance coverage

To ensure your student rental house insurance is truly comprehensive, consider these valuable endorsements:

• Legal expense: Given that legal disputes are common in student rentals, you might want to purchase additional legal expense coverage. This is useful if you end up seeking legal advice that may not be covered by your standard general liability insurance.
• Cyber liability: If you store client information digitally, this protects you from data breaches and cyber incidents.
• Other add-ons: Sewer backup, flood, earthquake, and contents coverage for landlord-owned items (e.g., appliances).

Common types of student rental house insurance claims

Understanding the risks can help you mitigate them. The most frequent claims for student rentals include:

• Property damage: Overflowing bathtub damages your floors and furniture, leading to costly repairs. Thanks to your commercial property insurance, however, most of your costs are covered.
• Lost income: A fire caused by an overloaded electrical outlet ravages your property, making it impossible to rent out until the repairs are done. While commercial property insurance will cover the cost of the repairs, your business interruption coverage will compensate you for any lost income during the repair period.
• Third-party injury: Postal worker visiting your student rental property accidentally slips on your icy walkway and hurt their ankle. As a landlord, you are held liable for the injury and sued. Fortunately, your general liability insurance is there to cover your legal fees.

How much does student rental house insurance cost?

At minimum, you should expect to pay $1,500 per year for a single student rental home with broad coverage, but multi-unit or high-risk areas can cost significantly more. To get the exact cost, you’re better off speaking to a broker or pulling up a personalized quote online, which you can do here on LowestRates.ca.

Here are some of the biggest factors to influence your rate:

• Type of coverage: If your policy includes multiple add-ons, such as cyber liability insurance, it’s likely that you’ll pay more for your insurance.
• Coverage amount: If you opted to increase your coverage limits, your insurance is likely to cost you more. For instance, instead of going with a $2-million limit for your general liability, you went with a $5-million limit, your premium will reflect that.
• Location: Properties in areas with higher crime rates – especially theft and vandalism – or increased risk of natural disasters, like flooding, tend to have higher premiums.
• Type of property and construction: The type of home you're renting out – whether it's a detached house or townhouse – affects your rate. Size plays are role as well, since bigger properties cost more to insure. Finally, the materials used to build your property matter too. For example, properties with newer, more durable construction materials are often cheaper to insure than older homes with outdated electrical or plumbing systems, which may pose a higher risk.
• Amenities offered: If you offer exciting extras like a hot tub or fireplace, you’re at a higher risk of accidents and liability claims. While these features can attract more tenants, properties with these types of amenities usually have higher insurance premiums to account for the added danger.
• Claims history: If you have recently filed a claim, then there is a high chance that you’ll file another one in the future. Insurers take this into account and adjust their premiums accordingly.

How to get the cheapest student rental house insurance rates

While you shouldn't compromise on necessary coverage, there are ways to manage your premiums. Here’s what you can do to lower them:

• Bundle policies: Combine your rental property insurance with your primary home or auto insurance for a multi-policy discount.
• Increase your deductible: Opting for a higher deductible can significantly lower your annual premium.
• Maintain a good record: Avoid filing claims for minor damage. A small crack that you can quickly patch up yourself, for instance, isn’t worth it in the long run. Additionally, consider carefully screening each tenant, as reliable tenants reduce the risk of negligence claims.
• Enhance safety measures: Installing monitored alarm systems or smart locks can demonstrate to insurers that the property is well-protected.