What is Rent Guarantee Insurance?

Rent Guarantee Insurance is designed to guarantee a Landlord’s rent if tenants fails to pay or refuses such as disputes. This is a product which can be purchased from a specialist landlord insurance broker.

What about Terms and Condition of rent guarantee?

There are fairly stringent terms and conditions when obtaining cover.  These may include:

• Comprehensive Tenant Referencing before the agreement was signed.
• May not accept tenants in receipt of housing benefits.
• Some may accept a working guarantor.
• Usually a cap on the amount of rent recovered.
• The insurance must be purchased before the tenancy is signed, or you may not be able to claim within a certain period.
• There’s generally an excess to pay when making a claim which could be as much as 1 month’s rent and it can take time to receive your first payment.
• All correct notices must have been served at the beginning of the tenancy such Safety Certificates and How to Rent Guide.
• The cover will be provided until you take possession of the property or tenant has surrendered the keys.
• The policy usually includes solicitor fees when regaining possession.
• Costs as little as £50pm

If your property is mortgaged, and you are unable to pay the mortgage without receipt of rent, you may wish to consider a policy to lessen the risks and provide some protection.

It’s always advisable to have a few months worth of rent available to cover costs of mortgage, insurances and maintenance in the absence of rent payments.