31 Oct What is Rent Guarantee Insurance and why is it so important? Updated 2019
If you are a landlord then you’re probably well aware of the fact that every tenant can seem completely fine on paper but can, unfortunately, become unable to pay the rent. Rent Guarantee is absolutely essential for if this ever were to happen. Even the most reliable of tenants can have a change in circumstances and become unable to pay their rent bills. Without Rent Guarantee Insurance your income and mortgage are at risk. Here at Van Mildert, we provide Rent Guarantee Insurance policies and we are here to tell you why they are so important for any landlord to have in place…
What is Rent Guarantee Insurance?
Rent Guarantee Insurance is an insurance policy that simply protects you as a landlord from the risk of tenants not paying their rent. If your tenant can no longer pay their rent and if you have a rent guarantee policy then you can claim on your monthly rental income and the insurer will pay the rent that you’re missing out on. Many landlords think that their rent is covered with landlord insurance, however, landlord insurance only covers things like building and contents, most of which do not have clauses about covering losses of rental income.
Why do landlords need Rent Guarantee Insurance?
Being a landlord is a stressful job, and feeling like you’re constantly worrying about your tenant’s rent being paid on time can make the relationship with your tenant feel pressured and tense. As your income is guaranteed either way you will naturally stress less about this issue. Although you may be a landlord reading this thinking that you have the most reliable tenant you could ask for, they have never missed a rental payment so far, and so on, this does not mean to say that issues could arise with the current employment that they are in or if they unfortunately become unable to work due to no fault of their own therefore may struggle with meeting their rental payment deadlines. Some Rent Guarantee Insurance policies also cover the cost of having to evict the tenant, meaning that you are saving even more money!
Am I eligible for Rent Guarantee Insurance?
Any landlord with an occupied property can purchase a Rent Guarantee Insurance policy, there are just a few requirements that need to be met first:
- A tenancy agreement should be in place before trying to take out rent guarantee insurance
- The tenant must have passed a tenant referencing check. However, if your tenant has failed you may still be eligible for rent guarantee insurance if the tenant provides a guarantor.
- A deposit should be collected from your tenant before they move in and held within a deposit protection scheme.
In the event of a claim, as the landlord you should be able to provide evidence of all of the above as it is the landlord’s responsibility to keep hold of these documents and any other proof asked for when signing the Rent Guarantee policy. Rent Guarantee Insurance policies are available for different lengths of time, including 6 months and 12 months cover. If you would like to order Rent Guarantee Insurance now then just click here to get yours today! Don’t hesitate to contact us on 0191 256 0920 if you require any more information.