Tenant Rent Guarantee Insurance - Why Landlords May Require It

If you are a property owner and have let it out on rent, it would be a wise decision to have rent guarantee insurance. For a landlord, it is extremely important as it protects against those who may default on paying rent. The guarantee also provides cover for costs and proceedings to evict the tenant from rented property where applicable. This policy protects landlords against any kind of defaults on part of the tenants.

It is advisable that the landlords keep themselves protected against voids and non-payment of rent, including legal expenses and the cost of evicting tenants.

You can get this cover from less than £10 a month and protect against non-payment of rent in a short period. In case, your tenant defaults on making a payment, this cover provides instant protection against any kind of eventuality. This policy will be paid out 14 days after the tenant defaults, minus the amount of the excess. Once the tenant first defaults, you have 31 days to make a claim. If you are unsure as to how to proceed, renters’ insurance consultant can help you get the best rent insurance.

Rented Property Insurance – What You Need To Know!

If you are a landlord and have let out your property on rent, you must have an insurance cover. With this, you are assured of having steady income from your tenants. In the eventuality of a default on part of the tenants, the policy will provide you the necessary coverage. This covers up to £2,500 a month in rent as standard.

What does the policy include?

The policy premium is a one-off payment per tenancy agreement, and is not based on the amount of rental income you receive. Moreover, the cover automatically includes legal cover for the cost of taking action against the tenant for unpaid rent, up to £50,000 in legal costs and rent only (not counterclaims). Rented Property Insurance provides coverage against defaulters.

This is available with 6 or 12 month cover options. A written tenancy agreement must be in place. The first months’ rent and a deposit equivalent to one month’s rent must be taken in full at the start of the tenancy. Two forms of Identification for each tenant must be held by the policyholder and / or the letting agent. Moreover, you will also be required to run credit checks on all your tenants. All tenants must be over the age of 18. Policy cover is subject to receipt of a satisfactory tenant reference. Rented Property Insurance England provides landlords’ with protection against tenants who are likely to default. Hence, it is a very useful policy.