2. Rent guarantee insurance – even the most reliable tenants could experience financial difficulties resulting in arrears. On average, it takes 42 weeks to evict a tenant; that’s around 10 months of lost rent during the time it takes to regain possession. A rent guaranteed policy could cover your rental income should your tenants be unable to pay their rent. Before you apply for rent guaranteed insurance ensure:
- you have a tenancy agreement in place and the tenants have been successfully referenced
- your policy provides sufficient cover - check the maximum number of months and the total value from which you can claim unpaid rent from your tenant
A rent guaranteed insurance policy could also cover:
- legal expenses and cover for any disputes relating to the recovery of rent arrears, repossession or eviction processes
- access to a panel of solicitors who can offer legal advice on a wide range of services, not just lettings