Rent Guarantee Cover
There is also Rent Guarantee Cover, you may wish to take out this insurance incase of tenants who fail to pay their rent. This could occur for various reasons, including redundancy or the inability to work as a result of injury or sickness.
Should you be unfortunate enough to have unreliable tenants, you will have to go through a lengthy legal process to get back possession of the property through eviction. Rent guarantee cover is inexpensive and allows you to lessen the risk of any financial losses if this were to happen. This could be substantial if you are making mortgage payments on the property.
Before providing cover for this, the insurer will want to be sure that proper checks have been carried out on the tenants. Insurers may want to see references and even a credit check, so it might be a good idea to use a Letting Agent.
Having both buildings and contents insurance and making sure it covers your requirements as a landlord is highly recommended but the level of insurance you take out and the extra features you opt for is completely down to you, the landlord, and will depend on your attitude to the risks involved, the size of your portfolio and how involved you are in the management of the property.
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