I have OpenRent Rent Insurance via Legal for Landlords. The tenant is £300 behind, but reducing, due to him having an accident.
I have been told that I can’t renew. Obviously I cannot end the tenancy. There seems little point using insurance if the risk is transferred back to the Landlord half way through a tenancy. Am I missing something?
Dom
Have Legalforlandlords told you you can’t renew?
If so, it is a good thing they are telling you now. If you had renewed and made a claim, they would have asked for evidence of regular rent payments and refused the claim, even though you have paid the premium.
Basically Legalforlandlord’s RPI is only for the most reliable of tenants. Maybe think twice in the future about taking on a tenant who won’t be able to pay the rent in the event of an accident – i.e. self employed tradesmen.
RGI is not worth it. Bad coverage, conditions you might not know about etc.
What you are missing is that insurers often wont take on a bad risk and assess risks every time you renew. From now on every other RGI insurer will also.likely ask if your tenant has been in rent arrears and many wont offer insurance as a result.
They dont want to take on bad risks. Exactly like LLs not taking on tenants with a CCJ. Because they want to maximize their profits
Best