So been using Rentguard for the last couple of years for my rent guarantee insurance and am due to renew it soon.
I will also have new tenants in the property in the next week.
So I took the time to checkout Rentguard’s terms for their rent guarantee insurance.
First though, I just wanna mention, Rentguard are still operating and offering rent guarantee insurance, but it says on Open Rent’s website, they are not. I have in writing as of a week ago from Rent Guard, they are still offering rent guarantee insurance. So I am not exactly sure why Open Rent are saying it’s no longer available. It could be the difference between a bad week or financial ruin having rent guarantee insurance or not during Covid19 for a landlord.
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Rentguard’s policy has jumped from £89 a year with no excess to £250 a year with 2 months excess.
So £250 per year, and if I need to make a claim, for lost rent, the excess for me would be £650 x 2 = £1,300.
So if my tenant was 3 months behind in their rent, as well as being possibly short on cashflow due to not receiving rent for the last 3 months, I’d have to find a further 2 months rent out of my own pocket to claim for the 3 months rent that they are behind. So if I am not mistaken, this would leave me with 1 month of rent payment out of the 3 that they are behind, due to me having paid 2 month’s rent as an excess.
Also
The rent guarantee insurance covers up to a maximum of 6 months of unpaid rent. So minus the £250 and 2 months excess. This cover provides a maximum of up to approx 3.5 months rent.
Rent Guarantee Insurance can only be claimed if you have begun eviction proceedings against the tenant if I am not mistaken, so rather than Rentguard paying the rent to the landlord and first trying to chase the rent from the tenant. To claim, the landlord must, begin eviction proceedings against the tenant.
Can anybody give input on Rentguard’s rent guarantee insurance policy to possibly re-motivate me? Because if the tenants I am currently referencing, pass referencing, with strong affordability and a good credit score, good employer and landlord references. My motivation to continue my rent guarantee insurance cover with them, will be almost non-existent.