What You Need to Know About Student Rental Housing Insurance

Post-secondary students in Canada are having difficulty finding suitable housing. 

According to the Business Council of Canada, there is a nationwide shortage of purpose-built student housing. With 1.5 million full-time students enrolled and only 10% of student housing available, this is especially problematic in large urban centres, where rental costs are higher.

For property owners in Canada, this creates an opportunity to rent their properties to students and supplement their income. However, renting to students comes with risks.  

Landlords, private property owners, and property management companies should protect themselves from potential losses and damages with student rental housing insurance.

Download Our FREE Insurance Guide

Learn everything you need to protect your small business.

Your email address will be used by Zensurance to provide latest news, offers and tips.
You can unsubscribe at any time.

Why Landlords Need Student Rental Housing Insurance

There are many advantages to renting a property to post-secondary students. Canadian university and college campuses always have a demand for off-campus housing.

Students are typically more concerned with affordability and proximity to campus than high-end finishes. Additionally, they often have financial support from family or student loans, which can decrease the risk of non-payment and may even lead to upfront payment of the entire lease.

Nevertheless, a lot can go wrong. You might have visions of the film “Animal House” and tenants like Bluto Blutarsky wreaking havoc, but you can allay those fears by getting insured and adequately screening your student tenants.

Property owners, after all, face a higher risk of property damage due to negligence since moving away from home might be a first-time experience for many of your student renters, whether renting out a room or running a rooming house. 

There also tends to be a high turnover rate year-over-year and extended absences since students often travel or head home during their reading weeks and holiday breaks. That leaves your property more vulnerable to vandalism and break-ins.

A student rental housing insurance policy can help protect your property and its contents and provide you with financial support if you are named in a third-party bodily injury or property damage lawsuit. 

Without business insurance, you’re on your own if you’re named in a lawsuit or if your dwelling is damaged by severe weather, fire, or a flood. Those costs can easily run into thousands of dollars, putting you in financial peril.

How to Reduce Student Rental Housing Liability Risks

Even with a landlord insurance policy in hand, you need to take steps to mitigate the liability risks you face. 

Taking proactive steps to reduce the threats you face serves two purposes: it lowers the chances of small issues becoming large, expensive ones, and it can help keep your annual premium low.

Here are a few ways you can reduce your student rental housing liability risks:

• Get a security deposit. It is standard practice to request a security or damage deposit from student tenants at the start of their tenancy. This deposit can help cover the cost of any interior damage to your property caused by the student or their guests. Typically, asking for a security deposit equivalent to one month’s rent is reasonable. This deposit can be returned to the student at the end of their lease, provided there is no damage to your property.

• Have the student’s parents co-sign the lease. To safeguard your investment, require a parent or legal guardian to co-sign the lease, as most young adults have little to no credit or rental history. The co-signer should undergo the same screening process as the student tenant, which includes a credit check, criminal background check, and income verification.

• Do necessary maintenance regularly. Whether inside or outside the property, be proactive in making necessary repairs to the dwelling. Leaving a minor issue unaddressed can quickly escalate into a major one that may damage your building significantly. Most insurers won’t pay a claim for property damages that could have been averted by regular maintenance.

• Inspect the property semi-annually. Include in the lease that you will conduct exterior inspections quarterly (every three months) and interior inspections twice annually. This will allow you to discover unreported maintenance issues and any lease violations by the tenant.

• Include clauses in the lease. It’s your property. Therefore, you get to set the ground rules. Include clauses in your lease for things such as establishing quiet times to thwart the risk of noise complaints from neighbours and the maximum number of guests your tenants may have, and outline your student tenants’ responsibilities. Don’t leave it to guesswork; put it in writing and have them sign it.

• Hire a snow removal contractor. Slips and falls account for most hospitalizations in Canada. As the property owner or manager, it’s your responsibility to ensure the driveway, entrance to the property, and nearby walkways or sidewalks are clear of snow and ice during the winter. Unless you’re keen to consistently shovel and salt your property’s asphalt throughout the winter, hire a snow removal contractor to take care of it for you.

• Insist student renters have tenant insurance. Your property’s insurance policy does not include coverage for your student renters’ possessions. Require your renters to provide proof of a valid tenant insurance policy, which will cover any loss or damage to their possessions and provide them with liability coverage.

How to Get Low-Cost Student Rental Housing Insurance Quickly

Zensurance offers affordable student rental housing insurance for landlords to safeguard their properties, and we help protect hundreds of thousands of landlords across Canada. 

Fill out our online application for a free quote in under five minutes.

Our team of licensed insurance brokers are here to support you. We can help you find the right coverage for your rental property from our extensive network of insurers, ensuring you feel secure in your investment. 

– Updated March 31, 2025.