Industry veteran Tim Wakelin, the highly regarded lettings insurance expert has launched the first specialist insurance policy for student guarantors.
It’s the moment that many parents find themselves delighted that their ‘child’ has won a place at university. They are not so happy when faced with the risk of liability if problems arise in shared flats and houses.
Guarantor Insure was established by Tim Wakelin after his son asked him to act as his student guarantor. With no such insurance cover in existence, Tim partnered with a major global reinsurance company and FCC Paragon, to underwrite the policy and provide an expert dispute resolution service.
The new policy protects student guarantors, who have signed a tenancy contract that legally makes them jointly and severally liable, against being held responsible for the entire tenancy and the conduct of all the tenants.
Tim said, “University is an expensive time and whilst I was happy to guarantee my son, I was nervous to act as his guarantor because the tenancy agreement had a joint and several liability clause in it making me responsible for the conduct of all the tenants and liable for the full amount of the rent and any damage caused if the tenancy turned sour.
“So I set out to find a way to protect us – and others too. I am really proud of Guarantor Insure as it does just that. We give parents and guardians one less thing to worry about.”
- A fixed annual payment of £95 provides a dispute resolution service, plus legal and financial protection, up to a policy limit of £25,000, limiting liability to the policyholder’s ‘share’, should a judgement be made against them in court.
- Agents can manage the guarantor relationship by providing a solution to the issues of being jointly and severally liable.
- Agents receive 10% commission for each policy – also paid upon renewal.