A new insurance scheme has been launched to protect people acting as guarantors for students living in rented accommodation.
The Student Guarantor Protection policy has been developed by managing general agent Alps and specialist scheme provider Guarantor Insure and is underwritten by AmTrust Specialty Limited.
It is designed to cover some of the financial and legal risks faced by parents and others who agree to guarantee a student’s rental obligations.
The launch comes as guarantors can face potentially significant liabilities under joint and several tenancy agreements, where responsibility may extend beyond the individual student they have agreed to support.
GUARANTOR PROTECTION
Unlike professional guarantor services, which can remove the requirement for a family member or other individual to act as guarantor, the new product provides insurance for people who have already agreed to take on the responsibility.
The policy provides legal advice and representation in disputes involving landlords, letting agents, other occupants or their guarantors over issues including rent arrears and dilapidations.
It can also provide indemnity for qualifying liabilities above the student’s own proportionate share, with different levels of cover available.
Policyholders will have access to Alps’s claims and legal services, including dispute resolution intended to resolve disagreements before court proceedings become necessary.
STUDENT RENTAL MARKET
Michelle O’Reilly, Managing Director at Alps, says: “For the guarantor, it’s not simply financial protection. Having specialist legal and claims support available when a dispute first arises can be equally important in helping achieve an early and proportionate resolution.”
Tim Wakelin, Founder of Guarantor Insure, says the product was developed after identifying a gap in protection for individuals guaranteeing student tenancies.
He adds: “We identified a clear need for protection designed specifically around the risks student guarantors face.
“Working collaboratively with Alps has enabled us to develop a bespoke insurance solution combining our understanding of this market with their insurance, claims and legal expertise.”
