Student guarantor insurance - anyone claimed?

[Thorinfling]

Morning - like many people we are embarking on the student housing process for our DD who is currently in Uni halls for her first year. She's found a house with some friends for next year and we received the guarantor paperwork.

Our liability for rent is limited to our DD's share, however we are being asked to sign a document that means we have an unlimited liability for any and all damages, even if caused by another student. I am slightly nervous about this, as on that basis we could be liable for tens of thousands of pounds or more.

We've looked at Guarantor Insure and will be asking them to clarify the piece about damages. My question is - they have great reviews everywhere I've looked but nothing related to anyone actually making a successful (or indeed any) claims. Has anyone experienced making a claim with a guarantor insurance company?

Thank you!

My husband had this problem when he was asked by my son/his step son to be guarantor for a flat he was renting. In the end my husband refused to sign the agreement as the liability seemed to be unlimited and not only for my son's flat, but the other 5 flats in the block 😳

We ended up paying six months rent up front instead which the landlord accepted.

Hi there - thanks for replying. That's interesting, I have seen some other threads with people suggesting that as a solution. We would be happy to pay the rent up front but that still leaves the issue of the damages liability? Was that not an issue for your son's landlord?

The landlord didn't ask for anything else to be signed so I'm assuming we had no liability. Sorry I can't be of more help, I know that when my son moved out his deposit was refunded in full by the letting agency.

If you pay up front then they usually release the requirement of a guarantor however in any event your son will remain jointly and severally liable.

I've been looking at Guarantor's insurance but all the ones I've seen so far are for rent only. They don't seem to cover damages.

@Thorinfling I looked into this with GuarantorInsure. I read the T&Cs and wasn't impressed. It's basically an arbitration service. In the event of an issue, they write to all parties to sort it out. If people don't respond pisitively, they threaten to take them to court to get the money back. You could do that yourself (though there is obviously benefit in someone else doing it). The sticking point for me was the clause that said they would only do any this if there was a more than 50% chance of success. So, for example, if one of the other flatmates was untraceable, or bankrupt, or dead (it happens), you wouldn't be able to claim, and they wouldn't pay out the money. For me, those "what if" situations are the reason I wanted the insurance in the first place.

In the end, the flatshare fell through, and the replacement flatshare didn't require guarantors (bingo!).