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  • Buy-to-Let

    Do you have rent guarantee insurance?

    Hi all,

    Just wondering your thoughts on rent guarantee insurance..worth it or not? Any providers to recommend/things to look out for and why? Alan Boswell looks to offer a low price for the peace of mind and good reviews but welcome any others!

    Thanks

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    IMO Rent Guarantee Insurance = No Brainer

    For example: Ave rent £800 pcm = Annual investment of 12 x £800 = £9600

    Protected that £9600 for around £100 for a 12 month Nil Excess policy (£12.50 a month) ? why wouldn't you ?

    Plus a lot of policies also pay you 1/2 the rent due for a further 3 months after eviction to allow you time to refurb and get the property ready for re-letting.

    Where possible by an Insurance policy - not a warranty, as you'll be covered FOS (Financial Ombudsman Service) and all of the regulation that goes with FCA registered firms and insurance.


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    Yes, I use RGI on all my properties through Alan Boswell Group.  It's a no-brainer to me.

    See - Mitigating business risk through insurance

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    I usually use Landlordreferencing.co.uk (they have a database of over 600,000 rogue tenants they check against) but for our most recent tenants they didn't qualify but I got RGI from Lettings Hub who were slightly less strict - though more expensive.  Definitely recommend LERGI, peace of mind for under £200pa.

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    Has anyone claimed on their RGI policies and is this easy/do you get penalised for claims?

    I've never bought my own RGI, just interested in how good the policies are when you need to use them.

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    Claiming on Rent Guarantee is no harder / easier than claiming on any other type of insurance.

    Most companies will ask you to provide evidence that all documents were signed / given in the correct timeframes etc and all your prescribed info was correct and so on.

    Anyone processing claims of this type need this otherwise there is a possibility that a Judge could throw it out of court (and side with the tenant) So, make sure you're paperwork is correct and upto date, S21/S8 has been issued correctly and so on and you should be fine.

    In terms of being penalised for claims - well first off - you will generally need to undertake Full Referencing on a tenant to be able to buy the Rent Guarantee - this lessens the risk. However, unless you have a claim on every policy it's unlikely you'd be penalised. But that would be upto the company / underwriter you use.

    Rent guarantee is there to provide cover for the unforseen.

    (*Moderator note:  Content removed as member has not passed probation and therefore not permitted to make recommendations*).

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    Thanks for the insight. Yes, sounds a little complex but nothing you wouldn't do anyway, especially the referencing.

    I guess it's best to shop around and check out everyone's T&C carefully before choosing a provider.

    Will take a look at XXXXXXXX (*Moderator note:  Name removed - see above post*). I plan to sell my HMO but RGI may be useful to protect my mum's HMO for the coming year.

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    I didn't have RGI on an inherited property. I had a fully managed service with a local LA and legal insurance, but was unaware of RGI.

    I lost 16 months rent due to a non paying tenant but at least the legal costs were covered.

    Sometimes its good to learn from other's mistakes.

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    I wish i had RGI done. I currently served a Section 8  notice and started court proceedings and now paying thousands in legal fees to fight counterclaim , getting possession and in the mean time still loosing rent.

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    Hi there

    No, I do not have Rent Guarantee Insurance although it is something I would consider if things went wrong.

    Through a combination of focusing on getting the right tenant and managing the process when things go wrong, (and luck, of course!) I've never had a level of rent arrears that would make RGI stack up  - but as I said, I would consider it.

    Ed

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    LETS MAKE HOMES by treating landlords as partners, tenants as customers & every property as our own."

    http://www.letsmakehomes.co.uk


    I would consider Rent Guarantee Insurance BEFORE things go wrong.

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