Landlord Guarantee Insurance

A further type of landlord’s insurance that may be a good idea to take out is rent guarantee insurance for if your tenants fail to pay the rent, which could happen for a number of reasons including redundancy or an inability to work as a result of injury or sickness.

Should you be unfortunate enough to get unreliable tenants you may have to go through extensive legal proceedings to get possession of the property through eviction. Rent guarantee insurance is relatively inexpensive and allows you to reduce any financial loss if this were to happen – potentially significant if you are paying for a mortgage on the property.

In order to cover you for this, the insurer will want to be sure that adequate checks on the tenants have been done. “Insurers like to know who is living in the property and will want to see references so for this reason it can be helpful to use a letting agent,” says Malcolm Harrison.

Although it’s essential that you take out both buildings and contents insurance and make sure the policy covers your requirements as a landlord, the level of insurance you take out and the added extras you opt for will depend on your attitude to risk, how many properties are in your portfolio and how involved you are in managing the property.