Insurance, do I need more because I am renting to students.

General Landlording & Rental Properties
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Insurance, do I need more because I am renting to students.

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Toledo, OH · Member since 2018 · 2 posts · 0 votes

Hi, I just wanted to make a step, even if that's reaching out to BiggerPockets podcast for the first time. I loved vacuum the truck. I'm thinking of moving in with a family member so I can rent out my current home two college students.

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  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y
    Well You must notify your insurer that it is for students . Failing to do so can be considered insurance fraud . Your rate will be much higher if they even allow for it .
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  • JD MartinBusiness Member
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    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    8y

    You will need landlord insurance on the house you're renting out. I doubt students will matter one way or another, if you are talking about college students, but you can't claim a house is your primary residence for insurance purposes and then move and rent to other people. That is fraud. You should expect to pay somewhat higher insurance; most of my properties these days seem to be about 75 cents to a dollar per hundred dollars of appraised value, which would be say $500 or so on a house worth $50k, whereas my primary residence is about 40 cents or so per hundred dollars of appraised value. I'm sure the difference is the liability element. 

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  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y
    My insurer absolutely would not allow student rentals . It will be right in the paperwork you sign and doing it anyway may mean your not covered if the place burns down ! This is more risk for property damage and the insurance company requires special policies for student rentals . I’ve been down this road and they are very strict about this . Many insurers I have heard about don’t even permit this much less offer a chance for a policy
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    OP
    Toledo, OH · Member since 2018 · 2 posts · 0 votes
    8y

    Thanks for all of advice everyone. 

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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    Depending on the student demographic they can destroy your rental so make sure you have the right insurance
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  • Katie Stewart
    Specialist · Fort Collins, CO · Member since 2018 · 557 posts · 191 votes
    8y

    I agree with Caleb. After working in student housing, I would definitely make sure you are properly covered when you're renting to students. Depending on the type of students, they can do massive damage to your property. Good luck!

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  • Tim S.
    Investor · California, CA · Member since 2016 · 367 posts · 375 votes
    8y

    Interesting, my insurer (Farmers) didn't seem to care that I was renting to students, I informed them after the fact because I read some stuff on BP that some insurers have a problem with it.  They just, said, "yeah, ok that's fine"  no change to the cost. 

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