Landlord looking for rent guarentee

hollydays

I have landlord insurance with a company and am just redecorating ready for a new tenant.Where doyou get rent guarentee insurance from,can i GET IT SEPERATELY,DO YOU HAVE SPECIFIC vetting procudure you have to follow to comply?
I have been told you can get this for about £12 a month.

motherofstudents

google landlord insurance or try landlord zone. You need to get it before your new tenant moves in or you have to wait before you can claim (about 3 months I think). I paid around £100 I think.

G_M

No - google 'rent guarantee insuranve'.

Or look at :
http://www.paragonadvance.com/index.cfm?action=rent_protection_legal_expenses_warranty

https://rentguarantee.endsleigh.co.uk/

http://www.rentguard.co.uk/insurance/rent-guarantee.html

jimjames

To qualify for the rent guarantee insurance you will normally have to have gone through a specific vetting / credit check process that they then agree to the guarantee.

If the tenants have any credit issues then the chances are that you won't be able to get the insurance, at least not at a reasonable price. So if your tenants have all checked out ok you may be paying a guarantee for something that is very likely to be ok anyway.

hollydays

jimjames wrote: »

To qualify for the rent guarantee insurance you will normally have to have gone through a specific vetting / credit check process that they then agree to the guarantee.

If the tenants have any credit issues then the chances are that you won't be able to get the insurance, at least not at a reasonable price. So if your tenants have all checked out ok you may be paying a guarantee for something that is very likely to be ok anyway.

Yes,that certainly is a very valid way of looking at it.Because this is the only property I rent, I can not afford not to get the rent,and I suppose a guarantee is the difference between very likely to be ok,and a dead cert that I will get paid.From recent experiences,I dont think you can second guess what will happen with a tenant.

tbs624

hollydays wrote: »

I suppose a guarantee is the difference between very likely to be ok,and a dead cert that I will get paid.From recent experiences,I dont think you can second guess what will happen with a tenant.

My bolding. Many experienced LLs choose not to go for these policies because of the hoops through which you have to jump and the [edit varied] exclusions, such as as not being able to make a claim for less than £250 rent plus evictions costs, not being able to claim for the first month of unpaid rent and note too that some have a max claim fig of around four months' worth of unpaid rent. Your completed claim form usually has to have been received within 31 days of the first unpaid rent. They will also usually insist that you use their own top level ( ie most expensive) tenant referencing service

If want to proceed down this route go through the small print of their Ts and Cs before signing up.

G_M

tbs624 wrote: »

My bolding. Many experienced LLs choose not to go for these policies because of the hoops through which you have to jump and the vairued exclusions, such as as not being able to make a claim for less than £250 rent plus evictions costs, not being able to claim for the first month of unpaid rent and note too that some have a max claim fig of around four months' worth of unpaid rent. Your completed claim form usually has to have been received within 31 days of the first unpaid rent. They will also usually insist that you use their own top level ( ie most expensive) tenant referencing service

If want to proceed down this route go through the small print of their Ts and Cs before signing up.

Absolutely! I would hae said this myself but kind of took it as understood - as with any contract (whether a tenancy, insurance, agency agreement, whatever).

But there again - from the number of enquiries on this site from people who have NOT read their contracts before signing, I guess tbs is right. It does need saying!

tbs624

The very fact that the OP referred to a rent guarantee providing "a dead cert that I will get paid" means that it's worth flagging up the need to check that small print.

As we know, with all sorts of agreements, many people either skim read or don't read/fully understand the terms

motherofstudents

OP, it's like any other insurance, you need to read the exclusions etc and make sure it is suitable for what you want. Googling landlord insurance btw will get you to rent guarantee insurance, legal cover etc. I got my landlord insurance and legal/rent cover from the same place.

You do have to make sure that all the correct checks have been done, which you should be doing anyway. I don't think this means, particularly in the current economic climate, that the tenant will never have problems paying the rent although it does minimise it. The thing is, if you get insurance and don't need it, you could say you have wasted the premium. If you don't get it and need it, well you could be much more out of pocket.

hollydays

Just to update.Having looked at all the points raised,I have looked into it and decided not to bother with it.