Getting A Rent Guarantee Clause

Any landlord will tell you that the process of chasing people up for rent is never an easy one and some people can be incredibly difficult when it comes to this task. If your tenants are all on a direct debit system then this process can be a whole lot easier as the money will just be automatically taken out of their account each month without any issues however problems can still arise and it is important to be properly insured in case anything should come up.

What is a rent guarantee clause though and why is it important that you have one in your insurance policy? Basically it protects you, as the landlord, against the failure of one of your tenants to pay their rent. Obviously it only comes into play if the tenant continually refuses to pay rent and you have to evict them as a result. This clause in your policy will cover the remaining months that the tenant had on their contract so that you, personally, will not suffer a loss of earnings.

This is not that common an occurrence and you will probably only come across a handful of these ‘rogue tenants’ in your time as a landlord however it is best to be properly insured just in case it does happen. That being said, it is fairly easy to search for insurance. Sites such as Just Landlords have been appearing on the internet over the past few years and they offer a great way in which you can get many different quotes at the one time. All you need to do is enter your details both personal and professional and the site will do the rest for you and you will be able to view many different policies and prices in a matter of minutes.