In the previous video in this series we looked at theft and malicious damage by my tenants?
In this next clip we will discuss one of our most frequently asked questions by landlords:
There can be many reasons why a tenant can't or even won't pay their rent. But for the landlord it can have serious financial implications and can soon escalate into a costly nightmare.
Although most buildings insurance will include cover for loss of rent, this is usually when the property is uninhabitable due to an insured peril like fire. And will not provide financial support should your tenant default on their rental commitment. For this you will need to look for specific rent guarantee insurance.
Most rent guarantee policies will require a signed tenancy agreement, full tenancy credit and reference checks and a deposit taken, secured and protected in accordance with legal requirements.
Another consideration is the length of time before the policy will start to pay out. Some may only activate after a set period of time for instance 60 days whilst others may start almost instantly. Also be aware of the length of time the payments will continue, again some policies may only pay out for 6 months, others may continue for 12 months or until the tenancy has ended.
Whatever the type of cover the policy offers, rent guarantee insurance can provide landlords with valuable breathing space to consider all their options regarding their tenants.
In our final clip in this series we will look at whether your policy will be automatically renewed?
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