11:18 AM, 7th November 2016, About 9 years ago 4
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I am about to rent out a flat to a couple who need accommodation due to their own home having been damaged by fire.
The rent has been agreed and an AST for 12 months (6 month break) is about to be signed.
I have been informed that the insurance company will actually be paying the rent on their behalf.
Do I need a rent guarantee from the insurance company that they will pay the rent for as long as the tenant lives there?
Would you recommend rent guarantee insurance in this case?
Thanks in advance for your comments.
Simon
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Jason McClean - The Home Insurer
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Member Since June 2014 - Comments: 175 - Articles: 98
11:26 AM, 7th November 2016, About 9 years ago
Hi Simon
If it is the insurer paying the rent then as long as they remain trading, you should be absolutely fine.
As you don’t have an AST with the insurance company, you’ll not be able to put them on rent guarantee insurance anyway.
I sell insurance for a living, but I would never recommend anyone buys rent guarantee insurance. Sorry, I think it is backing a winning horse and for the 1 out of 100 times that it may be needed, self insuring is more cost effective – but that is only mown personal opinion and quite relaxed view to risk.
Hope this helps;
Fed Up Landlord
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Member Since June 2013 - Comments: 1121
12:32 PM, 7th November 2016, About 9 years ago
Hi Jason
For the £75 per property per year it costs me it’s not worth risking losing the court fee, three months rent, and a load of sleepless nights. In this case I would recommend getting the insurer to sign a company tenancy agreement – or better still get them to pay the tenants who pay you – after you have referenced the tenants. If you are not letting the property on an AST then you may be breaching mortgage and / or insurance conditions.
Paul Fay
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Member Since August 2015 - Comments: 35
22:29 PM, 7th November 2016, About 9 years ago
No need to bother with insurance. Ask the insurance company to pay you 6 months in advance. With your tenants authority they can pay you direct. A one off payment rdeuces their administration.
Paul Green
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Member Since June 2016 - Comments: 135
17:14 PM, 12th November 2016, About 9 years ago
I have found rent guarantee a god send, and have needed it twice on the same flat for consecutive tenants, 1 was a fraudster, and used fake I D of a real person , the other was a Young lady who went home to mums and buried her head in the sand not answering my calls, email ect , hoping it would go away. I had no stress, just waited for 2 months arrears , which is only 31 days depending on month, filled claim form , they paid for everything bar section 21 & 8 which my solicitors done for £175. I received 6 months rent , court costs covered & bailiffs. Sorted. When a policeman rents I don’t bother or an ear Dr , but anyone else until I know them , first year always buy Endsleigh rent guarantee… approximately around £125 for 12 months all in and it’s tax deductible…saved me £10k , 5k both times…