The Lemon Fool

Hi,

I have a flat in London that I have previously let out to long term tenants and am looking to do so again.

In the past, I have never bothered with landlord insurance but given the current economic situation am tempted to take it out this time to cover rent etc.

Does anyone have any experiences with these polices and what checks a landlord needs to do on the tenants to avoid any future problems?

The prospective tenant in this case is also likely to have a guarantor - which is something new for me as well.

I am also looking for a policy which doesn't include buildings insurance as that is covered in the service charge but as far as most policies seem to include..?

Grateful for any assistance.

Search for rent guarantee insurance.

In my experience the terms are very dubious, and you need notify the insurance company if a tenant gets late on rent and then catches up. Has anyone got any experience of actually getting a payout on the insurance? If you have have one property it may be worthwhile but if it is 3 or 4 or above you are probably better to take the risk and save the £200 or so per property. Your letting agent may add this on as a 'recommended option' so wonder what is in it for them and make sure you untick the box if you want to decline.

Have a look at Direct Line. I have used them for a number of years, although only for building insurance and other bits and pieces. It costs around £270 and that is in a quite part of Scotland. I used to have the full package, but I cut it back as I have a great tenant and the flat is unfurnished.