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Landlord Insurance - What's rent receivable, rent guarantee, rent income cover?

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Author Topic: Landlord Insurance - What's rent receivable, rent guarantee, rent income cover?  (Read 77 times)
Newbie
Posts: 12

I like property

« on: January 11, 2022, 07:15:04 PM »

Hi all,

Iím looking at Landlord Buildings & Contents Insurance and just wanted some clarity on a few things before purchase.

Could you please clarify what an optional cover for ĎRent Receivableí is (what does it cover)?

Also I want to ensure that Iím insured as a Landlord for the following situations: eviction, repossession and also when a tenant is living at the property and stops paying rent.

Now the legal cover I understand covers repossession and eviction. But what is the name of the type of cover that covers a situation when a tenant is still living in the property and stops paying rent called?

Iíve heard buzzwords: rent receivable, tenant default, rent guarantee, rent income protection etc and finding it all very confusing.

Would appreciate clarity on what each of the above buzzwords are, what they cover?

Many thanks.

Betty

 



Global Moderator
Hero Member
Posts: 4353

Abuse Officer

« Reply #1 on: January 12, 2022, 08:40:30 AM »

Maybe they're all the same thing?

There is a school of thought that said all Insurance companies looked forward, from when Covid started to take hold, and decided to either massively ramp-up the prices of RGI policies, or got out of the market altogether. I do not know if these products have started to take prominence again, because I have never opted to purchase it. Not because I am lucky. Rather because I figured if I ever needed it, the policy would find a way of not paying me. Anecdotal stories from here appear to give the impression the policies have so many limitations and exclusions you'll be lucky to get cover that actually pays-out. Therefore, all you are doing by buying it is worrying about the worst outcome, which might lead you to yet another worst outcome.

You protect yourself best, I think, by having as short a fixed term as possible and taking action as soon as things look to be going awry. Not by waiting for 18 months and £11,000 of rent arrears like you see on the TV programmes.
Global Moderator
Hero Member
Posts: 1415

I like property

« Reply #2 on: January 12, 2022, 04:28:02 PM »

Another insurance- denier refusenik here.You only find out what you are covered for when you need to claim. I have straightforward buildings insurance.I had what was sold as "peace of mind for landlords" insurance for a few years at the start. Then came a nightmare tenant,and the insurance was a joke.
Full Member
Posts: 104

Landlord - always learning

« Reply #3 on: January 12, 2022, 09:48:47 PM »

@BETTY  IMO it's much more cost effective to spend time and effort vetting potential tenants thoroughly to ensure you find people who are very unlikely to cause the problems for which you are currently seeking insurance. Interview them personally to get a good feel for their situation and their attitudes.

Don't be afraid to reject applicants and endure a little longer void period in your quest to find the right tenants.

You can't guarantee 100% - but you can significantly reduce your risk.
Global Moderator
Hero Member
Posts: 1415

I like property

« Reply #4 on: January 13, 2022, 10:37:49 AM »

Agree totally. Listen to gut instinct too.I have ignored this in the past,and regretted it.
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