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Rent Guarantee Insurance
DEFINITION of 'Rent Guarantee Insurance'
A risk-management product that protects landlords against loss if a renter defaults. This insurance is bought by the tenant and pays the monthly rent for a set period of time if the covered tenant stops making rent payments.
If you are a landlord who lets a residential property,then you always run the risk of rent default by your tenant. Even if you have had the best checks and references carried out,you can never predict a tenant falling on hard times or losing their job or becoming ill and then not being able to pay the rent.
Just Landlords Rent Guarantee Insurance provides the following cover:
Rent Arrears Covered up to £2,500 per month
Legal Expenses For The Recovery Of Your Property
All Tenant Types Accepted
* You must obtain satisfactory references for each tenant or guarantor before the tenancy agreement started for rent arrears cover.
Rent Guarantee Insurance For Landlord
The household goods and personal belongings represent many years of financial and emotional investment. Therefore, you need to ensure that your house or property and its contents are insured against fire, theft, damage etc. “Rent guarantee insurance” is a form of insurance where, for a relatively small annual fee, landlords can protect against loss of rent. Rent guarantee insurance is designed to protect you in the event your tenant fails to pay the rent. This rent guarantee insurance policy will also cover landlord’s legal costs to pursue legal cases for damages or injunctions against tenants who breach the terms and conditions of their tenancy agreement. Rent guarantee insurance can help you and keep protected against all kinds of risks that you may be prone to against tenants.
Claim rent guarantee insurance
There are certain requirements to make a claim on your rent guarantee insurance.
- You should have a signed tenancy agreement
- Two form of tenant identification should be obtained from your tenant along with their photograph.
- Proof of the tenant’s employment.
- You must collect one months rent in advance and a dilapidation deposit before the property can be occupied by the tenant.
- Maintain a record of those rents paid and those which are due
- An approved tenant reference service must refer the guarantor, if the tenant needs a surety.
- In countries like UK and US, Complete tenant reference should be got and verified by a professional referencing company. Each tenant will be referenced by a licensed tenant referencing service.