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Rent Guarantee Insurance

by Mitko on June 7, 2012


As a landlord or a renter of property there are many forms of insurance you are required to have in order to maintain your property and business. These forms of insurance can range from anything that covers your property to anything which covers yourself as the landlord or renter. All of these in most cases are required by law and another such form of insurance is Rent Guarantee Insurance.

Rent Guarantee Insurance is not necessarily required by law but can be most helpful and beneficial to a landlord or renter. For a small monthly fee, this insurance covers a landlord against the possibility of loss of rent. Most of the time this insurance is covered under another form of insurance called Legal Assistance, but is not always included. What is actually covered under a Rent Guarantee policy is the loss of rent which may incur when a landlord evicts a non-paying tenant or a tenant up and leaves in the middle of the night. Most times this is covered by what is called a security deposit but that is to cover the damage left behind or renovations required by law before a landlord can rent a space again.

This insurance usually pays out one month after the tenant in question is gone and can be hard to obtain the financial payout since credit checks and other investigations are supposed to be conducted before you rent a pace to someone.

Rent Guarantee Insurance is to cover a landlord who rents space without the use of a letting agent. These forms of insurance policies not only exist in the United States but also in the United Kingdom. Whereas they are not required by law in most cases they are underwritten by a third party company, and in the case of the United Kingdom, registered with the Financial Services Authority.

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