Unoccupied Rent Insurance

trump3

Good morning

I currently let out two properties and am looking to move to a larger house which will obviously increase my own mortgage.

I have budgeted for my rental properties being vacant but was just wondering if there is such a thing as insurance which covers the rent if the property is between tenants.

If such a thing exists does anyone have and recommendations of company's to use?

Thanks

benjus

Cover for non-paying tenants certainly exists. The providers are quite strict about what tenants they would accept and you would almost certainly have to have them vetted by an approved referencing company. However, I'm not sure you can get cover for void periods between tenancies where the tenants have done nothing wrong.

Some letting agents operate an alternative scheme where you let the property to the letting agent and the letting agent sublets it to tenants. However, they will probably put any tenants they can find, and you would have no say over who lives there. I'd steer clear of these if I were you.

trump3

Thanks for this. Do you happen to have any experience of any company's that use the insurance?

Thanks

eddddy

trump3 wrote: »

Thanks for this. Do you happen to have any experience of any company's that use the insurance?

Thanks

If you google 'rent guarantee insurance', you will find lots of examples of companies that offer this.

(Before you take it out, check the terms in detail, and make sure you follow the requirements to the letter!)

I know an LL who used to have this insurance. He even had a claim paid on one occasion - with very little fuss. But he decided it wasn't good value for money, so he doesn't bother anymore.

G_M

This will NOT pay for voids between tenants when the property is vacant. After all, there would then be no reason for you to advertise for tenants at all! Far easier to leave it empty and receive rent from your insurer.......

You can get cover for defaulting tenants, but read the small print. Usually
* the 1st month is excluded
* maximum of 6 (?) months payable
* conditions on type of tenant
* requirement to use a specific tenant vetting service

Policies will vary so compare carefully before deciding which, if any, to use.

trump3

Thanks for your replies. I knew that there would be restrictions on the length of time you could claim for because as you say GM otherwise why would you bother getting a tenant!

Thanks again

Thanks again