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Rent Guarantee Insurance

Even the best of tenants can experience sudden changes in their budget.
What do you do if they stop paying rent?

What is Rent Guarantee Insurance?

Rent guarantee insurance is a legal expenses insurance contract designed to cover you if your tenant stops paying their rent during their tenancy. The policy includes legal expenses up to £75,000 to cover the legal costs needed to regain possession including, issuing notices, eviction, legal advice, legal defence & damage to the property.

Our rent guarantee insurance also covers 50% of the rent for up to 3 months if your property cannot be re-let right away after gaining vacant possession due to damage caused by the tenant.

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Rent Guarantee Insurance covers

Legal costs and expenses

up to £75,000 per insured incident – for eviction costs, legal defence, damage, rent recover

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Rent arrears

up to a maximum amount of £2,500 per calendar month from the date the tenant first falls into arrears paid until legal vacant possession

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75% of the rent

for up to two months after gaining legal vacant possession if the property cannot be re-let right away due to damage

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Variable payment options

are available

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Why Choose Rent Guarantee Insurance?

You can enjoy the peace of mind that comes with knowing your rent is covered, no matter what situation your tenants find themselves in

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Covers the cost of rent

if your tenant doesn’t pay their rent

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Handle the eviction

and cover it’s cost up until legal eviction

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Types of properties covered under the insurance

Advanced Rent offer a unique solution for HMO’s providing you with a cost-effective solution to cover your properties. Instead of having one policy per room, Our rent guarantee insurance for HMO’s allows you to have multiple

What do I need to check before buying a policy?

Before buying rent guarantee insurance, you should ensure that you meet all legal requirements for renting out a property and have the correct documents to hand. You will need to be able to provide evidence of the following:

1. Affordability

Your tenant needs to be earning at least 2.5 times the monthly rental amount. This can be from working income, benefits, and pensions, or a combination of it

2. A credit check clear of CCJs, bankruptcies or IVA’s

Tenants need to be clear of IVA’s, CCJS and bankruptcies for at least 3 years

3. Proof of identification

We need two forms of ID to confirm the tenant’s identity, one of which needs to include a photo. We suggest a passport or driving licence along with a utility bill

4. A legal tenancy agreement

There must be a legal tenancy agreement in place at the time of making a claim, if this is not the case then the policy will be void

The policy also requires that all documents you are required to issue by law have been issued to the tenant, these include:

Your tenants will have to be satisfactorily referenced using two forms of ID, one of which needs to be photographic, for a rent guarantee insurance policy to be valid. We will also accept evidence they have passed the right to rent as proof of identification.

Calculate your approximate price

The cost for 12 months cover with no excess can be as little as £108.00 paid annually or £9 per month *Prices are exclusive of insurance premium tax and for indicative purposes only

£258.00 (21.50)

Annual (per month)

£1,500

Monthly rent of the insured property

FAQ’s

Do I need Rent Guarantee insurance?

There is no legal requirement for the product, although it is highly advisable if you rely on the rental income.

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Will my Rent Guarantee insurance policy still cover me if I change my tenant?

Yes, the insurance is based on the property. As long as the new tenant has passed referencing and there is a tenancy agreement in place then the insurance will be valid.

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How does Rent Guarantee insurance work?

If your tenant stops paying their rent but remains in your property you will need to submit a claim. We will then instruct our appointed solicitors on your behalf to review your case. Upon approval of your claim our solicitors will help you gain possession of the property, and the policy will continue to make the rental payments that have not been paid by the tenant. These payments will continue for a maximum of 12 months, with up to two months’ worth of payments at 50% of the rental amount paid after eviction (while the property is empty).

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How do I buy Rent Guarantee Insurance?

Create an account here and buy with a credit or debit card or pay monthly by Direct Debit

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Can I take out a Rent Guarantee insurance policy if my tenants are already in arrears?

Unfortunately not. Please contact our help line for assistance and advice on your next steps

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