Guaranteeing Rent with Landlord's Insurance

Guaranteeing rent with Landlord's Insurance

Rent guarantee insurance is another type of landlord’s insurance that may be a good idea to take out in case your tenants fail to pay the rent, which could occur due to various reasons, such as redundancy or an inability to work because of injury or sickness.

If you are unlucky enough to have unreliable tenants, you may have to experience extensive legal proceedings to get possession of the property through eviction. Rent guarantee cover is relatively inexpensive and means you can reduce any financial loss if this were to occur. This could be substantial if you are paying for a mortgage on the property.

In order to provide cover for this, the insurer will need to be sure that the proper checks have been done on the tenants. “Insurers like to know who is living in the property and will want to see references so for this reason it can be helpful to use a letting agent,” advises Malcolm Harrison.

It’s vital that you take out both buildings and contents insurance and make sure it covers your requirements as a landlord but the level of insurance you get and the additional features you opt for will depend on how you feel about the risks involved, the number of properties in your portfolio and how involved you are with the property’s management.

Landlord Insurance
Buy to Let News
Buy To Let Landlords Plan to expand - A survey of landlords carried out by a Buy To Let Property...