R is for Rent Guarantee Insurance
As a Property Insurance Broker, I am frequently discussing Property and Landlords Insurance with my clients.
I’ve noticed that one of the covers which is often missing from a Landlord’s Insurance arrangement is Rent Guarantee Insurance.
What is Rent Guarantee Insurance?
Rent Guarantee Insurance does two things.
1. It pays rent arrears if your tenants default on their rent.
2. Depending on the type of policy you buy, it will pay legal costs to evict the tenant, including legal help and advice.
What’s included in Rent Guarantee Insurance?
Here’s a summary of what’s provided with one of our Rent Guarantee Insurance policies:
- Rent Arrears covered up to £50,000 per incident
- Legal Expenses covered up to £50,000 per incident
- No Excess to Pay
- Unlimited Period of Rent Arrears paid
- 6 or 12 Month options
- All tenant types are accepted
Don’t I already have Rent Guarantee Insurance?
Sometimes Landlords confuse Rent Guarantee Insurance for Loss of Rent cover (the latter often being provided by the Buildings Insurance policy).
Typically Landlords Buildings Insurance policies do not include cover for the tenant defaulting on the rent (see earlier blog ”Loss of Rent Insurance vs Rent Guarantee Insurance”).
How can I get Rent Guarantee Insurance
Some letting agents provide this cover, but when we’ve been asked to compare the cover to ours, our experience of checking a few of them is that the cover under a policy we have access to is more comprehensive.
However, some cover is better than none, but its of course very important that you have the best cover available for a competitive premium.
If you’ve never had Rent Guarantee Insurance before, if you have it but aren’t sure if it can be improved on, or if you simply don’t know whether you have it, contact us for a no-obligation review and quote.
Evans Insurance Brokers – Property Insurance Brokers in Essex, serving clients throughout the UK