Stand alone Rent Guarantee insurance?

by Readers Question

8:31 AM, 14th October 2020
About A week ago

Stand alone Rent Guarantee insurance?

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Stand alone Rent Guarantee insurance?

Hi I’m looking for Rent Guarantee Insurance on my properties that are apartments in apartment blocks. I am having no problems obtaining Rent Guarantees for my other properties as long as I also take out building’s insurance as part of a package.

However, with my apartments, I have to pay the building’s insurance as part of the service charge, so I am unable to arrange my own buildings insurance to tag the guarantee on to.

Any comments would be most welcome.

Many thanks.

Martin


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Comments

Dylan Morris

11:14 AM, 14th October 2020
About A week ago

Try another company that don’t insist on selling you an additional product that you don’t need. I’m sure most companies will be happy just to arrange the Rent Guarantee cover.

The Seasoned Female Investor

11:29 AM, 14th October 2020
About A week ago

Stand alone. Paymentshield......a little more expensive than normal .... but worth it

Jason McClean

11:53 AM, 14th October 2020
About A week ago

Hi Martin

Rent guarantee is an add on policy. It can be sold stand alone. Check online, you may find someone that will sell it to you.

As a brokerage, we have taken the decision to no longer sell this product as we do not believe it represents value to customers.

With the eviction ban, you are buying something you may not be able to claim against until at least March next year. The legal expenses element may be active straightaway.

I hope this helps.

Laura Delow

11:57 AM, 14th October 2020
About A week ago

Alan Boswell for RG in London midst Covid19 are charging £225 pa for a 12 month policy, Nil excess, £100,000 legal cover (£250 excess for Legal cover only claims), Includes the issue of section notices, Includes a mediation service which needs to be used for a valid claim. Cover entitlement up to £2,500 per month rent for 6 months only.
See link: https://www.alanboswell.com/landlord-insurance/rent-guarantee/

Paul Shears

13:08 PM, 14th October 2020
About A week ago

Take a look at Goodlord insurance. I took out a rent guarantee insurance with them recently.
1. You need to to the tenant refencing through them first and they are not the only company insisting on this.
2. You need to go through an agent as they will not deal with you directly.
3. Most important of all, you need to insist that the agent sends you a copy of the wording of the proposed insurance! It took me three attempts to get this and it was obvious that neither the agent concerned or the other landlord customers ever did this! The agent did not possess a copy of the terms of the insurance!

Martin Knowles

14:04 PM, 14th October 2020
About A week ago

Reply to the comment left by Jason McClean at 14/10/2020 - 11:53
Hello Jason
With the current eviction ban that is in place until at least March 21, what would your comments be if a tenant stopped paying rent say in December 20 and my rental guarantee is for a 12 month period. Would the 12 months commence from March 21 or December 20?
Thanks

Jason McClean

14:13 PM, 14th October 2020
About A week ago

Hi Martin

My understanding is that you can only initiate a claim in tandem with eviction proceedings. If a tenant cannot be evicted until March, then that's when the eviction and claim will start, not before. Don't expect any backdated rent as eviction proceedings had not started.

Speak with your insurer directly though, they may have a different interpretation, but if they do, make sure you get it in writing so you can call upon it when/if needed.

I really do urge careful consideration before buying this product - read documents carefully and understand the limits of what is on offer.

Adrian Alderton

15:58 PM, 14th October 2020
About A week ago

I was looking for this insurance on relets this summer. Most companies had withdrawn from the market however Alan Boswell still provides a stand alone product. The premium has increased significantly and the terms are less which you need to check out. You can also just buy the 'legal expenses' element only which i did on one let as it was a lower rent and any potential legal possession costs can be high.
Hope this helps.


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