Landlord Insurance and Student Rentals: What Property Owners Need to Know

As students return to school, many landlords prepare their properties for the academic year. Renting to students – whether it’s a single room, a basement suite, or an entire property – can provide steady rental income. However, it also introduces unique risks that standard home insurance policies often do not cover.

This is where landlord insurance becomes essential – here’s what you need to know:

Why Standard Home Insurance Is Insufficient

Home insurance is designed for owner-occupied residences. Once a property is rented – particularly to multiple tenants such as students – the risk profile changes. Insurers call this a material change in risk. If a landlord continues relying on a standard home insurance policy, claims may be denied because the property is no longer being used as intended.

Common exclusions in traditional home insurance include:

• Tenant-caused damage (accidental or intentional).
  
  
• Loss of rental income if the property becomes uninhabitable.
  
  
• Third-party liability for tenant or visitor injuries.
  
  

Without landlord-specific coverage, property owners may face financial exposure far beyond the cost of the premium savings.

What Landlord Insurance Covers

A dedicated landlord insurance policy is designed to reflect the realities of renting, especially in student-heavy markets. While coverage varies by provider, most policies include:

• Property protection for fire, flood, or accidental damage.
  
  
• Liability coverage if a tenant or visitor is injured on the property.
  
  
• Loss of rental income if the property is uninhabitable due to a covered event.
  
  
• Optional protections, such as coverage for furnished units or malicious damage.
  
  

Special Considerations for Student Rentals

Student tenants can present distinct challenges, from higher turnover rates to more frequent property wear and tear. Insurers often adjust premiums or impose conditions when properties are rented to students. 

Landlords should:

1. Disclose tenant type – Inform your insurer if you plan to rent to students. Failing to do so could invalidate coverage.
   
   
2. Review lease terms – Clearly define tenant responsibilities, such as maintenance, noise restrictions, and guest policies.
   
   
3. Inspect regularly – Routine property inspections can mitigate risk and demonstrate due diligence to your insurer.
   
   

Tax Implications: Can Landlord Insurance Be Deducted?

In Canada, the Canada Revenue Agency (CRA) allows landlords to deduct eligible expenses incurred to earn rental income. This includes landlord insurance premiums, which are recognized as a necessary operating expense.

Additional deductible expenses may include:

• Mortgage interest
  
  
• Property taxes
  
  
• Repairs and maintenance
  
  
• Advertising for tenants
  
  
• Property management fees
  
  

Proper record-keeping is essential; landlords should retain all insurance documents and receipts for tax season.

The Breakdown

For landlords entering the student rental market, securing landlord insurance is not optional – it’s essential. It ensures compliance with insurance requirements, protects against unexpected risks, and provides peace of mind during the busy rental season.

Before handing over the keys, it’s important to review your coverage with a trusted insurance advisor to confirm that your policy reflects the true use of the property. Doing so safeguards your investment while creating a safer, more stable environment for your tenants.

At Scrivens, we understand that student rentals come with their own set of opportunities – and risks. Our dedicated insurance advisors work closely with landlords to craft coverage that reflects the realities of your property, your tenants, and your income goals.

Protect your investment with expert coverage for rental properties. Get a quote for Rental Properties Insurance at Scrivens today.