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ALIEN1X
17-05-2006, 20:40 PM
Hello,

If the property is fully managed via agent using AST,is it worth taking up agents offer on rent insurance cover? But they are usually are the policy holders?

From my experience they try to avoid using the policy if problems arise even though landlord is paying montly premiums,why is this?


Or should I just stick to the appropriate court forms/ or notices if a poblem arises?

Or should I take up my own policy for rent insurance and legal cover?

Regards
Alien1x

Poppy
18-05-2006, 10:30 AM
I hope that you have read many posts on this subject, on this forum and elsewhere.

Here are a few questions and possible answers. You should of course come to a reasoned decision by yourself:

Question: What do I want to be insured against?
Possible answer: I want the rent paid if tenants default.

Question: What are the monthly premiums?
Possible answer: I can afford £x every month as long as rent is being paid and I can afford £y every month if tenants not paying.

Question: Why do I want insurance for this?
Possible answer: I don’t have a lot of capital to cover the outgoings until I can evict through the courts.

Question: How will any claim be treated?
Possible answer: Claim not permissible until more than two months have elapsed and then the insurer will only start paying out from the third month thereafter as long as they cannot find any loopholes.

Question: Is there any point in buying insurance if the tenancy is for six months?
Possible answer: I can regain possession through the courts anyway as is my right.

Has it occurred to you that probably half of the responses advocating insurance of this kind are replied to by people selling insurance? Which is fine, you can use the contact details they supply.

When you consider how many landlords regularly post to these forums, why aren’t they leaping forward in defence of insurers they do business with? Have you also noticed that landlords are not strongly saying “yes, get yourself rent guarantee insurance” - they are more likely to strongly say “reference your tenant thoroughly before signing a tenancy”.

All of the scenarios that you think you want cover for can be remedied through the courts: unpaid rent, damage.

Additionally some buildings and contents cover already include public liability.

Think about it and share your reasoning with us please.

ALIEN1X
18-05-2006, 20:49 PM
Hi,

I have not known anyone having insurance on this forum, its sounds as- 'All of the scenarios can be remedied through the courts'.

My concern is if a tenant gets a lawyer/solicitor or legal aid if I make a claim for example - unpaid rent,damages over the deposit amount eviction process.

This could be costly if tenant wins and most of time they do win as courts are in there favour?

But then again insurance companies may not like paying out?

tenant29
18-06-2006, 20:00 PM
[QUOTE=ALIEN1X]Hello,

If the property is fully managed via agent using AST,is it worth taking up agents offer on rent insurance cover? But they are usually are the policy holders?

From my experience they try to avoid using the policy if problems arise even though landlord is paying montly premiums,why is this?


Seems you need another letting agent if he is offering you insurance cover and avoiding to pay for legitimate claims.

Also you need to carry out a proper credit check on every prospective tenant .

Jonboy
24-06-2006, 11:57 AM
"Also you need to carry out a proper credit check on every prospective tenant"

probably why the agent is not pursuing claims, as they may be found to have not done their job properly!