Rent Guarantee insurance – The Best Way to Check on Defaults on Rent Payment

Rent Guarantee insurance provides instant protection if your tenant fails to pay the rent. Basically, Rent Guarantee Insurance covers up to £2,500 a month in rent as standard. The policy premium is a one-off payment per tenancy agreement, and is not based on the amount of rental income you receive. The cover also includes legal cover for the cost of taking action against the tenant for unpaid rent, up to £50,000 in legal costs and rent only (not counterclaims). We will also take up also take the cost and simplify the eviction process.

The Rent Guarantee Insurance policy is available with 6 or 12 month cover options. However, you must have a written agreement in place. The first months rent and a deposit equivalent to one month’s rent must be taken in full at the start of the tenancy. You must also submit two forms of Identification for each tenant must be held by the policyholder and / or the letting agent. You can also get a favourable tenanted rent insurance cost.

Besides this, you will also be required to run credit checks on all your tenants. All tenants must be over the age of 18. Policy cover is subject to receipt of a satisfactory tenant reference. With instant tenant referencing covers the basics, such as CCJs and identity checks, whereas comprehensive tenant referencing also includes tenants' employment record and previous landlord / letting agent details.

Rent Guarantee cover runs in line with the tenancy agreement, which must have a start date within 60 days of the tenant reference. If you are unsure as to whom to approach, you can seek help from landlord rent insurance consultant. They can help you get a favourable rent insurance policy.