Rented Property Insurance – Know More About It

If you are a landlord and have lent out your property on rent, you must have an insurance cover. With rented property insurance, you are assured of having getting rent. In the eventuality of a default on part of the tenants, the insurance will provide you the necessary coverage. Rent Guarantee Insurance covers up to £2,500 a month in rent as standard.

What does the policy include?

The policy premium is a one-off payment per tenancy agreement, and is not based on the amount of rental income you receive. Moreover, the cover automatically 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 ensure we will take all the cost and hassle out of the eviction process, if necessary. Rented Property Insurance provides coverage against defaulters.

Rent Guarantee insurance is available with 6 or 12 month cover options.

A written tenancy agreement must be 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. Two forms of Identification for each tenant must be held by the policyholder and / or the letting agent. 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. Rented Property Insurance England provides landlords’ with protection against tenants who are likely to default.

A rent guarantee policy cover will pay out 14 days after the tenant defaults, which does not include the amount of the excess. If you wish to make a claim, you can do it within 31 days once the tenant first defaults. The benefits will be paid at a rate of 1/30th of the monthly rent for each continuous day that rent is in arrears for a maximum of 6 months and a total of up to £2,500. You can cancel new policies within 14 days of receipt of the insurance documentation. You will receive a full refund of the premium, provided that no claims have been made to the insurer. Our team of experts will provide you in depth information on rented home insurance, Landlord rented Property insurance and buy to let rent guarantee insurance.