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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!
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.
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
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
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.
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.
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*).
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.
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.
A good teacher must know the rules; a good pupil, the exceptions.
Martin H. Fischer
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.
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.
LETS MAKE HOMES by treating landlords as partners, tenants as customers & every property as our own."
I would consider Rent Guarantee Insurance BEFORE things go wrong.