legal expenses and rent guarantee insurance

[pugsy]

Hi, after a recent dodgy tenant with a clear reference check, i have decided to put legal/rent insurance in place.

Have any landlords experienced claiming on these kind of policies/or how do landlords rate this insurance? The reason for me is that I am moving overseas for a period and need some backup on the legal front, generally my letting agent will not deal with legals. Please guys give me some feedback.

[Trenners]

Hi Pugsy,

I have found these policies to be very poor value for money.

They can only, usually, be taken out if you use the referencing services of the insurance companies to reference your tenants in the first place (this can cost over £30 in referencing fees alone) and they then don't tend to pay out any money unless the tenant is 8 weeks behind with the rent .. .and then they only cover upto 6 months.

If you tenant has paid 1 month in advance before moving in, then doesn't pay any more money, you can't claim on the insurance until the end of month 3 (when they will be 8 weeks behind) and then you can only claim for months 4, 5 and 6 meaning that you are having to pay quite a high premium to insure a relatively small amount of lost rent.

I never take out the rent protection insurances. Legal insurances might offer better value but your letting agent should be able to support you upto the point of actually filing in the court forms and taking the tenant to court.

I would suggest that you look for a more supportive letting agent if you are going to be abroad.

Good luck,

Mark

[pugsy]

i guess when you break it down like that it doesn't look so appealing. For me the timing of my move is bad, having just been to court last week, so I'm feeling a little paranoid about things! You're right though, I need an agent who has a full time battle axe on the staff! My thanks for your comments. S.