Unfortunately the price for rent guarantee policies across the market has gone up. As I’m sure you understand, but I’ll explain for others reading this post, insurance premiums are determined by the amount of risk covered by the policy.
A higher rate of unemployment is expected once the Government furlough scheme is withdrawn, and the courts have been severely affected by the Coronavirus Act and procedure orders designed to reduce infection risk at hearings. This means that is simultaneously more likely that tenants will accrue rent arrears (and larger arrears), and that landlords will not be able to evict or recover arrears within the usual timeframe. Both these factors means covering a landlord’s rental income from a tenancy is more risky.
Of course, given that the risk has increased, so has the incentive of a landlord to insure their tenancy. So even though all insurer policies we have seen are now more expensive, that doesn’t necessarily mean they are worse value.
We do of course hope that risk subsides as soon as possible and we are able to once again offer lower prices to landlords. Renewals at the new pricing are available via Rentguard.