What is covered under rent guaranteed insurance?
The list is long and varied. Before you can obtain most policies, you must already have a tenancy agreement in place and the tenants must have been successfully referenced. Once this is in place, you will find that your application is more likely to be accepted by potential insurers.
Every insurance policy differs, however you will find standard terms associated with the maximum number of months and the total value from which you can claim unpaid rent from your tenant. It is important to ensure that you check the terms so you have enough cover and aren’t left in financial difficulty should you need to claim.
A guaranteed rent insurance policy is not just for rent arrears. It can also be used for expenses such as legal costs. You may need to take legal action relating to the recovery of rent arrears or process an eviction, for example.
Some insurance policies will also provide access to a panel of solicitors who can help you with legal advice should you need additional support. Their advice is not just limited to the letting of the property but covers a wide range of services.