rental income insurance - worth having?

  • Filter
  • Time
  • Show
Clear All
new posts

    rental income insurance - worth having?

    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?


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



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


        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


        Latest Activity


        • Leasehold Second Home insurance
          by Rincewind
          Hi All

          I have a leasehold holiday home (flat).

          The lease states: . . . "the lessor will at all times during said term (unless such insurance shall be vitiated by any act or default of the Lessee) insure and keep insured the building including all common areas and common...
          27-06-2020, 09:18 AM
        • Reply to Leasehold Second Home insurance
          by Rincewind
          yes but . . . the lease says

          "The lessor will at all times during said term (unless such insurance shall be vitiated by any act or default of the Lessee) insure and keep insured the building including all common areas and common services against fire and such other risks (if any) as...
          29-06-2020, 17:06 PM
        • Reply to Building Insurance
          by hexu
          Hi ATC, I seem to misunderstand your point previously. My solicitor has written to the freeholder, but he does not accept our position. His reply is shown as below:

          "Insurance companies are unable to cover the structure of the building and common parts of the building without taking...
          27-06-2020, 19:00 PM
        • Building Insurance
          by hexu
          The dispute has happened since the change of freehold.

          I was told by my conveyancing solicitor that building insurance is arranged by the Landlord for the common parts only and I must insure the flat myself. My lender also informed building insurance I must take out to hold as a condition...
          30-05-2020, 16:10 PM
        • Reply to Leasehold Second Home insurance
          by Section20z
          I think your best bet is to notify the insurers directly that it is occasionally vacant for longer periods . (As long as your lease has no clause against it) otherwise you may be liable as you say.
          Failing that make sure it's occupied at least once a month.
          You can use C19 as a valid excuse...
          27-06-2020, 12:01 PM
        • Gas boiler insurance
          by blinko
          Hi all,

          I'm due the annual gas safety and wanted to ask does anyone take out any insurance based gas boiler service product.

          as I'm thinking i spend around 60 for the certificate but if it was say 100 for the insurance PLUS a certificate very year that might make sense to me....
          21-06-2020, 09:27 AM
        • Reply to Gas boiler insurance
          by jpkeates
          A hidden benefit of BG's cover is that when they can't get an engineer straight out (most autumn seasons) the tenant tends to blame them rather than me.
          23-06-2020, 13:12 PM
        • Reply to Insurance premiums going through the roof
          by flyingfreehold
          Quite often a freeholder will own a flat or two in its own block. Former's porters flat; flats formerly let to sitting tenants, and so forth
          23-06-2020, 04:23 AM
        • Insurance premiums going through the roof
          by flyingfreehold
          Those seeking renewals of buildings policies will find that insurers are taking a much tougher line especially where there have been chunky losses and premia are rising dramatically

          A broker put it to me this way. In 2020 insurers have made negative income on its investments therefore...
          17-05-2020, 10:41 AM
        • Reply to Gas boiler insurance
          by Interlaken
          I have a British Gas policy on one of my lets at £23.50 pcm. It gets me unlimited call outs and a gas certificate. The particularly difficult but good paying tenant was convinced my plumbers were trying to kill her and her children and she would never agree a time to let them in yet want endless repairs...
          22-06-2020, 11:16 AM