Landlords - Rent Guarantee Insurance
These policies are invaluable for most landlords. As a tax
deductible premium this will guarantee you receive the rent you are
expecting from your property regardless of your tenants personal
circumstances, ability or willingness to pay the rent.
If you have a mortgage on the property or have calculated your
rental income verses your outgoings this will ensure you do receive
your rent. Most such policies will include the legal expenses, as
detailed above. You will receive your rent and the legal fees to
obtain vacant possession will be covered.
Policies will usually guarantee your rental for a fixed period,
typically 6 or 12 months. Some policies will provide additional
cover once you have obtained vacant possession until you are able
to re-let your policy.
There were over 150,000 possession hearings in 2001 in relation to
the 2.7m lets that took place the risk is relatively small but if
you need to have your rent on a regular and guaranteed basis this
insurance should be a high priority.
The costs vary from a fixed cost policy or are commonly rated as a
percentage of the annual rental figure, typically 3-4%