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  • Property-a-holics

    Landlords going head to head on rent guarantee insurance

    What's put me off RGI is that it doesn't cover much more than a sort of legal insurance does. Like the type you can tack onto your real insurance policy be it car or house.

    So it doesn't cover issues like a lift or water riser pumps failing, giving some tenants an excuse not to pay rent.

    It doesn't cover your property being unrentable due to unforeseen issues with the building block it's in. Or water leaks from above or flooding of access. Or fire/smoke damage to fixtures or decor. Or any damage caused by an issue with a neighbouring property. And any of the rent you'll lose.

    To add insult to injury, if at the point of starting a new AST with a new fully vetted tenant, RGI will ask you to pay for, but you will not actually receive, any cover for the first three months.

    Think on the fact that you can easily buy CDW waiver insurance to cover an emergency that the standard car hire companys insurance doesn't cover you for. But no such equivalent exists as an add-on to your rather thin leaseholder insurance that covers building block issues.

    All in all it sounds like you should buy shares in RGI insurers, rather than go into BTL.

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    Eh!!!

    What on earth are you wittering on about!!!?

    RGI is NOT an insurance for anything other than insuring for rent default.

    The cost is about £7.50 pm which covers you for up to £500000 of rent arrears plus other costs and extras if you use LRS.

    If you want to insure contents then you need a LL insurance policy

    If you want PL insurance then that is a separate policy.

    If you own a motorcycle, car and van you would need 3 separate insurance policies unless you chose a fleet policy of which there are only about two suppliers.

    LL have separate policies for different things

    It really isn't that hard.

    I suggest perhaps a chat with LRS or Alan Boswell who have great experience in what LL need.

    They would be able to come up with multiple policies suitable for all your needs!

    Where did you find out that you have to wait 3 months of an AST commencing before you submit a claim!?

    What a load of rubbish.

    I believe you have seriously misunderstood various aspects of RGI..

    So I'll educate you.

    I speak only about LRS.

    There is no 90 day limit, there is no excess providing you pay an extra £10.

    For a new tenancy there is no restriction on claiming.

    So if you don't receive rent on the second month you COULD claim!

    The reason RGI companies give you 90 days to submit a claim is they hope you will resolve the arrears before you submit a claim.

    My one and only and successful RGI claim was made on the 85th day of a 90 day claim period.

    I left it so late because the rent defaulting tenant made various promises they would pay.

    So I gave the tenant the benefit of the doubt.

    So rest assured you may make a RGI claim the day after a tenant has defaulted on rent.

    So there is no confusion or any issues with the wide range of insurance policies available for LL.

    It would simply NOT be possible to have ONE LL insurance policy to cover everything as there would he different qualifying criteria for different insurance policies.

    Insurance underwriters aren't stupid.

    Their shirts are literally on the line.

    They therefore naturally have strict criteria for different types of insurance.

    If you have a flat you will not be able to source loss of rent insurance as this is only available to LL who have a buildings policy.

    With a flat you are required to pay block insurance.

    I don't know if one single insurer in the UK that will provide stand alone loss of rent insurance if you gave a flat

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    The 3 month rule was quoted to me both by Ensleigh and by the RGI insurer that OpenRent promote.

    And I've several times taken as tenants science and tech grads who were previously in shared accommodation or abroad. For which risk-averse RGI insurers have proven to be no use whatsoever as the tenants don't fit their template.

    Meanwhile what I see as a genuine risk, loss of rent due to the factors I listed in my previous post, no insurer wants to touch once they hear there's an existing if threadbare leaseholder insurance in place already.


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    Of course as regards the RGI providers you have mentioned it may well be that there are different conditions with them.

    No one RGI is the same as all providers.

    So it is just a question of shopping around and determining the price point you wish to pay and particular RGI conditions.

    Personally I would pay for a LRS policy with no policy excess and giving cover of £50000 including legal costs.

    They have a 90 claim window and if I wanted I could claim the day after the 1st rent default on the 2nd month of a Fixed Term Tenancy.

    Would cost me about £90 for an annual policy.

    The BIG problem with RGI wonderful though it may be;;so few tenants qualify with the very stringent criteria.

    This is obviously understandable ad underwriters are risking a very large liability for what is a very small premium.

    You only have to see that my successful RGI claim cost the insurer over £10000.

    That is an awful lot of RGI policies they have to sell just to work out even!!

    I suppose such RGI insurers work out that very few claims will he made as so few qualify for RGI!

    There are reckoned to he about 138000 evictions every year caused by rent default.

    If RGI insurers lowered their criteria for such rent defaulters then whilst LL would stop losing rent money the RGI insurers would lose fortunes!

    RGI remains the Gold Standard for LL to achieve for tenants.

    Very few LL will be able to achieve RGI for the majority of their tenants.

    Unfortunately without RGI LL are dreadfully exposed to rent defaulters.

    It is a risky business being a LL!!

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    Just to be clear - are you talking about the services offered by...

    https://rentsafeuk.co.uk/property-let-st...months-60/

    I've got a feeling that none of my tenenats would meet the requirements for rgi - and those do - would never miss a rent payment anyway.


    Ive got maybe 3 tenants who regularly miss payments - maybe it's something important like they are going on holiday for 2 weeks and booze money isn't more important then rent.

    If could get rent guarantee on them - it would be great.

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