Tenant Guarantor Insurance

guarantor

I have been asked to stand Guarantor for my son who is planning to share a house in Leeds with 8 other students. As I have never met the other students I am not at all keen to agree a guarantee that effectively covers all of them as the tenancy is joint and several.

Can anyone please tell me if there is such a thing as Guarantor Insurance? There must be thousands of parents in my position so I would have thought it would be a good product.

Dangermac

guarantor wrote: »

I have been asked to stand Guarantor for my son who is planning to share a house in Leeds with 8 other students. As I have never met the other students I am not at all keen to agree a guarantee that effectively covers all of them as the tenancy is joint and several.

Can anyone please tell me if there is such a thing as Guarantor Insurance? There must be thousands of parents in my position so I would have thought it would be a good product.

There are various companies who offer Rent Guarantee 'insurance' (not really insurance - more like a bond)

However, and this will be the problem I think - these products are underwritten - i.e the financial risk is assessed, and an appropriate premium charged (if the risk is acceptable). I would doubt that any company who offers Rent Guarantee insurance/bonding would do so, with the financial risk being based on 4 students.

Might be worth having a brief chat with someone like Euler Hermes or www.performancebondsonline (although you might need to call them to discuss).

Hope this helps in some small way

Dangermac