rental income insurance - worth having?

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    rental income insurance - worth having?

    Hi
    does anyone have any experience of this which I have seen advertised on the London underground.

    Is it worth having and does it work in practise ?

    Can anyone share any experiences or advice?

    thanks
    Keith

    #2
    Ah, well you know that it will be virtually impossible ever to claim on, don't you Keith?

    Comment


      #3
      claiming

      Thats what i am suspicious about , hence why I am asking......

      Comment


        #4
        It's a tricky question to answer really. Some people would only consider insurance "worth it" if they have a claim, others would consider it "worth it" just for the peace of mind.

        Most buildings insurance policies have cover for loss of rent built in which is for any rental income lost following an insured peril (i.e. fire at the property renders it uninhabitable and tenant has to vacate). Rent guarantee therefore is mainly for if the tenant defaults on their payments. Most rent guarantee policies will require checks/guarantees to be in place before providing cover which minimises the risk of their being such a default in rental payments anyway but it depends how vital the rental payments are to you.

        You may think your tenant will never have problems paying but if they suddenly lose their job, they might not be able to keep up with rental payments. The knock on effect is that you may need these payments coming in to pay the mortgage or other vital bills which could in turn lead to you having financial difficulties. This policy provides a good peace of mind if nothing else but it is also one of the most complex of landlords insurance to get to grips with the terms. Every policy is different so always read them carefully and be especially aware of the requirements of the policy (i.e. tenant checks) and of any restrictions in cover (sometimes cover does not fully come into effect for first few weeks on new policies to avoid landlords taking out policies and claiming straight away when there is a known problem about to occur).
        Steve Smith - Company Director at a leading Landlord Insurance broker with 20+ years experience in the industry
        LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
        See my profile for contact details

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