Rent Guarantee

[bil8999]

Hi to all

What is the cost of rent guarantee insurance?

Is it worth it on low cost rentals.

Thanks

[Richlist]

I have no idea what it costs as my letting agent includes it at no extra cost to all of their clients. Because they carry out extensive referencing and credit checks and detailed questionnaires on applicants they underwrite any loss that the landlord incurs.....all for a very competitive agency fee. In almost 20 years I've only needed to make one very small claim on that insurance.

Is it worth it on low cost rentals ?

I'd suggest that the lower the rental cost then the greater the chance of problems. Increased probability of problems means a bigger need for a back up plan ie rent guarantee insurance.

The issue is that at the very lower end of the rental scale, good quality tenants can be hard to find and many of those tenants are unlikely to pass the criteria to qualify for rent guarantee insurance.

[Melboy]

I am with Direct Line Landlords Insurance and it is included in the premium which is competitive to all other landlord insurances that are on offer.

[bil8999]

Hi RL

There's always a cost built in somewhere.

When I say lower end of rental, I am comparing with London prices.

Over the last 37 years I haven't had that many tenants leave without paying or cause damage, perhaps I have just been lucky.

Next time we renew the insurance I will get a quote and update the price difference.

Thanks again 

[kanrent]

21 hours ago, Richlist said:

I have no idea what it costs as my letting agent includes it at no extra cost to all of their clients. Because they carry out extensive referencing and credit checks and detailed questionnaires on applicants they underwrite any loss that the landlord incurs.....all for a very competitive agency fee. In almost 20 years I've only needed to make one very small claim on that insurance.

Is it worth it on low cost rentals ?

I'd suggest that the lower the rental cost then the greater the chance of problems. Increased probability of problems means a bigger need for a back up plan ie rent guarantee insurance.

The issue is that at the very lower end of the rental scale, good quality tenants can be hard to find and many of those tenants are unlikely to pass the criteria to qualify for rent guarantee insurance.

I would be interested to know who your agent is in been getting many problems with mine