homelet rent gaurantee - any experience

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  • homelet rent gaurantee - any experience

    I have a tenant who is now in 2 months rent arrears (read more about the case in the link provided). I visited an eviction lawyer to understand what can be done and while going through the papers he pointed out that the the agent had bought rent gaurantee insurance for the tenancy. His advise was to not do a section 8 or section 21 and let homelet deal with it.

    Has any LL had any experience with Homelet and did you receive any insured rent paid out at all.

    Hi Forum members, Really looking for help and advice as I have now been loosing sleep over my tenant's behavior since quite some time now. I am a new landlord and must admit didn't do much of homework before giving my property out to a tenant. There was a letting agent involved and I believed a lot in him

  • #2
    Never have personally, as insurers don't like paying out. I think we'd all be interested to hear how you get on.


    • #3
      I used to use this many years ago when I was an employee.

      The cover was pretty decent and Homelet's legal department took care of everything.

      Like any insurance company they'll fulfil their contract provided you/your agent hasn't given them reason not to. Yeah most common reason I can recall for them not paying out would be them not being notified of the arrears in time.

      Ask the agent for a copy of the paperwork and check it thoroughly. Or alternatively just remind the agent that you have cover and ask when you should expect payment.


      • #4
        The last time I looked at one of these policies they had a sneaky little clause regarding defended section 8 evictions:

        It said that if tenant put up a defense, (they nearly all do under spurious grounds) the cover is suspended until such time as you prove there is no defense.

        Now, as your tenancy has another 5 months to run, guess what sort of eviction the insurers will want to use?


        • #5
          About the tenant defence - Do you mean in the court or a defence at the time of putting in the claim with Homelet


          • #6
            In court. Though I think you already mentioned false complaints about the place, didn't you?


            • #7
              Here it is in Homelet's rent guarantee conditions:
              7j In the event of a defence and/or counterclaim being raised during the course of the Proceedings by the Tenant seeking set-off against unpaid Rent payment of Monthly Benefit under the Policy will be suspended until determination has been made by the court or by agreed settlement as to the Rent payable by theTenant for any period during the Period of Guarantee


              • #8
                Thanks JK0 for digging this out. I checked with a solicitor and there doesn't seem to be much merit in privacy and harrassment claims, as both are criminal in nature. As regards to disrepair, i will get an inspection certificate soon. Its a fully refurbished property with everything new inside and I have bills so don't think the tenant will have much of success with their claims with regards to the property condition


                • #9
                  You'll be surprised what faults a T can concoct.


                  • #10
                    Of course, it will be in the insurer's interests to lose at the possession hearing. I doubt they will even send a lawyer, so you might want to insist on attending yourself.


                    • #11
                      Originally posted by mariner View Post
                      You'll be surprised what faults a T can concoct.
                      or indeed create themselves for their own nefarious purposes. Did you have a professional inventory done at start of tenancy?


                      • #12
                        I had homelet insurance and it saved me thousands of pounds. They waited 2 months as this was the amount of time, where they believed a tenant was unlikely to pay (rather than late payment).

                        I issued a Section 21 and a Section 8, there were no issues with this and IMO Homelet welcomed this, less risk of increased costs being pursued.


                        • #13

                          yes, however I recently did an inspection of the property and found that the tenant had damaged some of the tiles and window glasses.


                          • #14
                            The Booker Man,

                            That is very reassuring. The homelet claim has been accepted and I also spoke to one of my previous landlords, when I used to be a tenant and he also had good experience with Homelet. The tenant has now cleared his previous dues except this month's rent so he is no longer in 2 months arrears.
                            any idea what would Homelet do in this case. Will they cancel the claim or still pursue it until the tenant is evicted


                            • #15
                              Originally posted by vishalbjain View Post

                              any idea what would Homelet do in this case. Will they cancel the claim or still pursue it until the tenant is evicted
                              They won't have issued section 8 court papers yet, will they? It's pointless continuing until the arrears go back up to 2 months.

                              Did you issue the S21 I suggested in your other thread?


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