Guarantor insurance

henrik1971

Is it possible to insure a guarantor risk?


Its not for a loan, its for our daughter who has to provide a parent guarantor for her student house tenancy, and becuase the tenancy is joint, our liability would extend to the other occupiers who we think are okay, but TBH don't actually know any of them.
There seems to be no way around this. the lettings place says take it or leave it. The other main student lettings agent in the city says pretty much the same. Clearly hundreds/thousands of students around the country (and their parents) are in the same boat. Hard to believe anyone is happy about taking on such risk, but people are doing it anyway.


Just asking on here as I know there is lots of talk about guarantor-related matters. I've already posted on the renting forum - more from the angle of the crazy contract terms in the tenancy agreement itself!


Thanks

[Deleted User]

Can't see there being anyone willing to insure.

It would be far too open to abuse. The premiums would need to be more than the guaranteed sum.

henrik1971

Thanks, this is my assumption too.


I hoped that becuase you can insure things like public liability with limits of indemnity in the millions for a few hundred quid a year, it might be possible to insure this sort of risk with perhaps a maximum exposure of say £10-15k for a similar sum

[Deleted User]

The risk of students damaging property is way, way higher than general public liability issues.

MEM62

henrik1971 wrote: »

Is it possible to insure a guarantor risk?

No. And if it were the premium would be prohibitive.

henrik1971 wrote: »

Hard to believe anyone is happy about taking on such risk, but people are doing it anyway.

Most are not happy about it but it's a case of Hobson's choice.

From a landlord's perspective it is the sensible arrangement. The last thing they want to get wrapped up in arguments over which tenant has paid and which has not and having to chase several people to recover any losses.

iolanthe07

I would look at the possibility of her living in a hall of residence rather than a shared rented student house, at least to start with.

BakingC

If there are other student tenants I assume also their parents have also had to sign something similar so it is not just you who is responsible for everybody else's but everybody else's who is responsible for yours.

MEM62

BakingC wrote: »

If there are other student tenants I assume also their parents have also had to sign something similar so it is not just you who is responsible for everybody else's but everybody else's who is responsible for yours.

That might be the case but all guarantors are jointly and severally liable. The OP's concern is that they could be potentially lumbered with the whole liability and theoretically this is possible.