The idea of rent insurance sounds good but canít I just claim against another insurance policy if my tenants play up?
It might not be that simple. Broadly based tenant insurance may look as if it will take care of you if the rent stops coming in. But a closer examination of the terms and conditions shows that this only happens in specific circumstances Ė mainly if your tenants are forced to move out after the property becomes inhabitable. Thereís more information about this on www.tenantinsurance.co.uk.
Decent rent insurance brings other benefits as well. After it has helped evict non-paying tenants it should also pay out at least some money while you advertise for replacements. Letsure, for example, will pay 75 per cent of the rent for up to two months till the property is re-let, while Endsleigh will pay 50 per cent for up to three months. The problems you would otherwise face paying the bills during void periods are just one reason why experts like the Association of Residential Lettings Agents (www.arla.co.uk) say single-property buy-to-let investors are most in need of rental protection. Landlords with many properties may be able to subsidise one empty property with the money coming in from their others. New investors without this opportunity may risk going into arrears if they donít have decent insurance.