What you need to know about Rent Guarantee Insurance
When it comes to renting out your property, there are a lot of things to think about in order to protect your investment. One of these is Rent Guarantee Insurance.
What is Rent Guarantee Insurance?
Rent Guarantee Insurance is a type of insurance that can protect you as a landlord from loss of rent if your tenant defaults on their payments. This type of policy will usually cover you for up to 12 months of lost rent, and can give you peace of mind knowing that you won't be left out of pocket if something goes wrong.
There are a few things to consider when taking out Rent Guarantee Insurance, such as the excess amount you will need to pay if you make a claim, and whether or not the policy covers legal expenses. It's also important to make sure that you are covered for the right amount - typically, the policy will cover you for up to 12 months of lost rent, but this may vary depending on the insurer.
Rent Guarantee Insurance can give you peace of mind when renting out your property, and is an important consideration for any landlord. For more information on Rent Guarantee Insurance, please get in touch with a specialist advisor.
What is and isn’t covered in rent guarantee insurance?
Most rent guarantee insurance policies will cover you for:
- Rent arrears
- Legal expenses
- Loss of rent
- Repossessions
- Rent default
However, it’s important to check the small print of your policy as some insurers may exclude certain types of tenants, such as students or those on benefits. It’s also worth noting that most policies have an excess, which is the amount you would need to pay towards any claim.
When taking out rent guarantee insurance, it’s important to make sure that you are covered for the right amount. Typically, the policy will cover you for up to 12 months of lost rent, but this may vary depending on the insurer.
What are the costs and excess of rent guarantee insurance?
The cost of rent guarantee insurance will vary depending on a number of factors, such as the value of your property and the level of cover you require. Most policies have an excess, which is the amount you would need to pay towards any claim. The excess is typically around £250, but this may vary depending on the insurer.
It’s also worth noting that some insurers may charge a higher premium if you have tenants who are considered to be high risk, such as students or those on benefits.
How can I protect my income if I can’t rent out my property?
If you can’t rent out your property, there are a few things you can do to protect your income. One option is to take out Rent Guarantee Insurance, which will cover you for up to 12 months of lost rent if your tenant defaults on their payments.
Another option is to take out an unoccupied property insurance policy, which will cover your property if it is vacant for more than 30 days. This type of policy will usually cover you for damage, theft and vandalism, as well as loss of rent.
For more information on Rent Guarantee Insurance, please get in touch with a specialist advisor.
Do I need a tenant reference for rent guarantee insurance?
Most insurers will require a tenant reference as part of the application process for Rent Guarantee Insurance. The reference will usually be provided by an employer or previous landlord, and will confirm that the tenant is employed and has a good rental history.
It’s important to note that some insurers may charge a higher premium if the tenant is considered to be high risk, such as someone who is self-employed or has a poor credit history.
For more information on Rent Guarantee Insurance, please get in touch with a specialist advisor.
With Rent Guarantee Insurance, will I be covered for legal disputes with my tenant?
Most Rent Guarantee Insurance policies will cover you for legal expenses, including eviction costs, if you have a dispute with your tenant. However, it’s important to check the small print of your policy as some insurers may exclude certain types of disputes, such as those relating to rent arrears.
It’s also worth noting that most policies have an excess, which is the amount you would need to pay towards any claim. The excess is typically around £250, but this may vary depending on the insurer.