Rent guarantee insurance
Rent guarantee is a form of insurance where, for a relatively small annual fee, landlords can protect against loss of rent. Normally, 'Landlord Rent Guarantee Insurance' is combined with 'Legal Assistance Insurance' whereby a landlord's legal costs of recovering rent and/or evicting a non-paying tenant are covered.
Generally, the insurance pay out only starts after one month. It is usually a condition of such policies that a landlord ensures that their tenants are professionally credit-checked before handing over the keys.
Rent guarantee is a very useful form of insurance, particularly where landlords let their property without a letting agent, as the necessary checks involved actually tend to deter rogue tenants who would otherwise gravitate towards properties being let privately.
All companies underwriting such policies in the United Kingdom must be registered by the Financial Services Authority
Labels: Rent guarantee insurance