Loss of Rent Insurance Cover
Why should I consider having Loss of Rent cover?
We would urge all landlords to check that your present landlords insurance policy provides loss of rent cover. Following an insured peril, such as a fire, your tenanted property may become unhabitable for use by your tenant or tenants. It is highly probable that your rental income would stop as your tenant finds alternative accomodation leaving you with a damaged property which may be in need of extensive repairs that could last for many months. Loss of rent insurance deals with your loss of revenue whilst your vacant property is habitable.
What if my tenant wants me to re-accommodate them?
You may even discover that your tenant wishes to continue paying their rent but be re-housed at your expense & your rental income would then be re-directed to meet the cost of alternative tenant accommodation. This section of cover also ensures that you are protected financially should you be expected to pay to re-accommodate your tenant.
What if my property takes 18 months to be repaired & is not habitable?
Loss of rent or the cost of alternative tenant accommodation is not covered by all Landlord insurance so it's important that you check that you have it included. Most policies that do offer it may charge extra for it and most will retrict the period with which you benefit from your claim to replace your rent to 12 months. Some policies pay-out for up to two years. The Landlord Insurer can provide policies that pay-out until the property returns to a habitable condition. The amount of cover that is provided is calculated as a percentage of a property's declared rebuild value & can vary - typically 20%-25%.
'Loss of Rent' cover provides complete 'peace of mind' at a time of crisis and we usually ensure that it is included as standard in your Buy to Let insurance policy.
How does Rent Guarantee Insurance differ from Loss of Rent Insurance?
Rent Guarantee insurance is very different to loss of rent insurance & it's helpful if you are able to determine the differences when obtaining a landlord insurance quote.