Managing general agent Alps and specialist scheme provider Guarantor Insure have launched a student guarantor protection insurance scheme, underwritten by AmTrust Specialty Limited, to cover individuals who agree to act as guarantors for students in rented accommodation.
The scheme combines Guarantor Insure's knowledge of the student guarantor market with Alps's product development, claims, and legal expertise. It was developed as a bespoke proposition rather than an adaptation of existing off-the-shelf cover.
Student rents represent a substantial annual financial commitment, and agreeing to act as a guarantor carries real exposure. That risk is amplified under joint and several tenancy arrangements, where a guarantor may face liabilities that extend beyond the individual student they have agreed to support.
The new insurance is intended specifically for those who have taken on that responsibility directly, as distinct from professional guarantor services, which replace the need for an individual to act at all.
Cover under the scheme includes:
- Legal advice and representation in disputes with landlords, agents, other occupants, or their guarantors over rent arrears or dilapidations
- Indemnity for qualifying liabilities above the student's own proportionate share, with different levels of cover available
- Access to Alps's specialist claims and legal services, including dispute resolution aimed at resolving disagreements before proceedings become necessary
"This partnership demonstrates what we can offer as an MGA beyond off-the-shelf solutions," said Michelle O'Reilly, managing director of Alps.
"Working with Guarantor Insure, we've brought together AmTrust's underwriting capacity with our product expertise and in-group claims and legal capabilities to create a genuinely bespoke solution around an identified customer need. For the guarantor, it's not simply financial protection. Having specialist legal and claims support available when a dispute first arises can be equally important in helping achieve an early and proportionate resolution."
Tim Wakelin, founder of Guarantor Insure, noted the product had been shaped by a gap in the existing market. "We identified a clear need for protection designed specifically around the risks student guarantors face," he said.
"Working collaboratively with Alps has enabled us to develop a bespoke insurance solution combining our understanding of this market with their insurance, claims and legal expertise."
