Rent Guarantee Insurance FAQS

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Rent Guarantee Insurance FAQS

Did you know that Landlords in the UK are out of pocket to the tune of over 5bn every year as a result of damage to property and unpaid rent? This figure may seem shocking but it is undeniable! Protecting yourself as a Landlord is so important. Rent Guarantee Insurance is one of the best ways to protect your investment, as it does exactly what it says on the tin – guarantees your rental income every month! It is important to remember that even the most reliable of tenants can find their financial position changing drastically through no fault of their own, which can, in turn, compromise their ability to pay the rent on time and in full. This is where rent guarantee insurance can provide the necessary peace of mind to ensure that your investment is protected.

We have produced some frequently asked questions surrounding this form of insurance;

What is Rent Guarantee Insurance 

As previously mentioned, if the tenant fails to pay their rent for any reason then the insurance policy will pay you the rent instead – it’s as simple as that.

What does Rent Guarantee Insurance cover? 

It will cover the cost of any unpaid rent owed to the landlord when a tenant fails to pay. The Legal Expenses element of the policy provides additional cover in that, in the event of a tenant refusing to leave a property, it covers all of the legal costs associated with formally evicting them. This comprehensive insurance is available exclusively to landlords who have fully referenced their tenants through Van Mildert.

Do I need to be accepted for Rent Guarantee Insurance? 

For a landlord to take out a rent protection insurance policy, there are a number of eligibility criteria for the tenancy that need to be met before the insurance can be agreed, the most important points are outlined below:

  • All tenants must have been comprehensively checked and referenced (and passed)
  • The tenants must move within 60 days of being referenced
  • The policy will only cover up to £8,333 per month of rent
  • If the tenancy started more than 14 days before the policy start date then no claim can be made during the first 90 days.
  • In the event of a claim you must notify us within 60 days.

How do I make a claim?

In the event of the tenant breaching the tenancy agreement or falling into arrears exceeding one full months’ rent, you should contact us on 0191 256 0920 to begin proceedings and file a claim.

Is Rent Guarantee Insurance the same as Guaranteed Rent?

They are differences between the two! 

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. 

Guaranteed Rent

The Van Mildert Guaranteed Rent Collection Service is simple and represents a hugely enhanced service from the Rent Guarantee and Legal Expenses Insurances which are currently available in the market. With Guarenteed Rent, Van Mildert will collect the rent from your tenants and pay the rent to you on the rent due date even if the tenant is late in paying. Also, if the tenant breaches the tenancy agreement then Van Mildert will cover the legal costs of eviction and if the tenant damages the property Van Mildert will pay 50% of the rent for two months after vacant possession. You will never receive part payments and never have to chase rent.