Student Accommodation Buildings Insurance

Student Accommodation Buildings Insurance is becoming more specialist as the growth of the University system has vastly increased the need for high standard student accommodation.

This demand for student accommodation is being met in part with the traditional housing stock with private landlords adapting houses to suit the needs of the local student population. Despite the increase in stock the insurance market is very used to dealing with this insurance and in fact quotes can be obtained from this website for individual residential property insurance for students.

However, there is now far greater investment into either the conversion or new build of apartment blocks designed to cater either wholly or mainly for students.

Historically, many insurers have not found student accommodation to be attractive business and most of the recognised insurance market have avoided this insurance leaving it to lesser known insurers.

Apartments blocks being converted or newly built by professional investors are of more  appeal to insurers as they recognise investment on this scale carries high standards and professionalism.

These new student student accommodation blocks often come with far higher standard of fit out with many more services and amenities provided to the ever increasing expectations of students.

It is therefore important to consider the following when arranging student accommodation building insurance: –

1. The value of the contents that you are providing for students which should include all furnishings including soft furnishings such as carpets and curtains and linen as well as general contents such as utensils, fridges, microwaves, tv’s etc.
2. Loss of revenue. You should insurer for the total annual rental income including any service charges and consider the period you would need to insure for. Typically three years is recommended as this is the period it might take to rebuild the property in the event of a major fire.  Some policies automatically provide a percentage of the buildings insurance for loss of rent. If this option is considered the rent should be calculated to see if this would be adequate.
3. Alternative accommodation. Check your lease agreements to see what obligations you may have and if any insurance is required.
4. Consider the building valuation. If a new build you should have a clear idea of the cost of re-building. However, if this is a conversion it can be more complicated and possibly you should consider a professional rebuilding cost valuation.
5. Inflation protection. Once the rebuilding cost is known then you should consider how to protect against inflation during the rebuilding period. Index linking and Day one inflation increases should be considered and you should seek the advice of your insurance adviser.
6. The management of the property particularly as the majority if not all of the property could be vacant at the same time. All insurers have restrictions regarding unoccupied properties and this needs to be considered in some detail when arranging the student accommodation buildings insurance.
7. Are there any onsite facilities such as a restaurant or gym. Are they independently run or offered by the owner of the student accommodation in which case additional liabilities and insurance requirements arise.
8. Are their any employees that will require employers liability insurance.
9. Is there any cladding. Insurers will want to know all of the details of the cladding.

RMK can help you navigate the insurance market to ensure that you have the right insurance for your student accommodation with an insurer that understands the industry and is competitively priced.

RMK can also help at the development stage with developers insurance (also known as contracts all risks) and building warranty insurance.

Rebuilding cost valuations can be arranged for £125 for buildings up to £10m. This can be waived if RMK subsequently insure the building. Contact us for details.