What’s covered by rent guaranteed insurance?
To start, it’s worth noting that before you apply for rent guaranteed insurance, you must have a tenancy agreement in place and the tenants must have been successfully referenced.
Rent guaranteed insurance policies differ among home insurance providers, 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’s important to check the policy you opt for provides sufficient cover so that you’re not left in financial difficulty should you need to claim.
A guaranteed rent insurance policy doesn’t just cover unpaid rent. It can also provide cover for legal expenses (the amount varies among policies), as well as cover for any disputes relating to the recovery of rent arrears or repossession or eviction processes, for example.
Some rent guaranteed policies will also provide access to a panel of solicitors who can help you with legal advice, should you need additional support. Their advice isn’t limited to the letting of the property, but covers a wide range of services.