derick.king Posted February 28, 2006 Report Share Posted February 28, 2006 Hello Fellow Landlords, I've been inquiring into insurance against a tenant not paying their rent. I believe it is generally called "Rent Guarantee Insurance". I've had a quote of £99.00 per tenant. Can anyone tell if they have gone along this road? Is it worthwhile or is there a lot of hassle involved in trying to collect from the Insurance Company? Many thanks in advance for any help you are able to provide. Respectfully, Derick Link to comment Share on other sites More sharing options...
gizzmo Posted April 9, 2006 Report Share Posted April 9, 2006 I have seen the £99 deal that you are referring to. If you add up the excess of one month's rent and the fact that they can't take any action until your tenants are at least 2 months in arrears anyway. I had constant issues this year with a tenant being constantly just under 2 months in arrears. I felt safe in the knowledge that I had suitable insurance though not through the same company as you mention above. However the insurance were unable to help at all, and no payment is forthcoming until after the tenant is 2 months in arrears anyway - at which time you can go through the eviction process yourself. The whole cost of the eviction process is much cheaper in my opinion, and there are numerous free resources that can advise and help you on what to write in letters and when to serve the agreements, and which ones (such as this forum) If I were you I would defintiely check the small print before signing on the dotted line. Link to comment Share on other sites More sharing options...
F-Prop Posted April 10, 2006 Report Share Posted April 10, 2006 Hi Derick, I agree with Gizzmo, I've looked at the small print and it's not always worth the money. Yes they will help you out if you get a very bad tenant who's several months late but other than that they are no help at all. I've never actually bothered with the insurance and only had one problem. I called the courts and spoke to the bailiffs who were extremely helpful and friendly (always good to have a bailiff as a friend in this business!! ) I took the guy to court and soon got my money back, so no real hassles. Trevor. Link to comment Share on other sites More sharing options...
Landlord Insurance Direct Posted April 10, 2006 Report Share Posted April 10, 2006 Rent Guarantee insurance offers peace of mind to landlords that the legal expenses and rent will be paid to them in the event of a non paying tenant. and at £99.00 offers real value for money when compared to some companies who are asking 2.5-3% of the rent! btw - the cost should be per tenancy, not per tenant, that is up to 8 sharers providing they are on one tenancy agreement, i.e. students sharing a house. the excess of one month should be covered by your deposit. the reason for the 2 months is that that relates to when you can start to take legal measures. you can't do anything if tenant is only 3 days late with the rent! personal circumstances should dictate whether you feel this prodcut is right for you. a lot of landlords don't need this level of protection, but some do and it works very well for them. as for getting money out of the insurance company, they are an insurance company! so as always, read the documentation well as advised to do and you will have no problems if you have a valid claim. Link to comment Share on other sites More sharing options...
nonpayersarescum Posted April 11, 2006 Report Share Posted April 11, 2006 Gosh arn't Landlord Insurance Direct really helpfull. Really though dont waste your money Link to comment Share on other sites More sharing options...
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