There’s nothing worse than going to make a claim on your insurance policy and discovering that you have a hefty excess to pay! Rent protection or rent guarantee insurance is no different, and an unexpected excess cost can leave landlords in a tricky situation.
While the vast majority of rent protection insurance policies will have at least a small excess fee to pay when you want to make a claim, there are also some rent protection insurance products with no excess at all. Whether or not you end up paying an excess will depend on the exact rent guarantee insurance policy that you choose and which insurance provider you choose to purchase it from.
When you start looking at your options for rent protection insurance you should always make sure that you read the small print of each policy to find out if the policy has an excess, and if so how much it will be.
If you want to wrap your head around how “excess” insurance works, check out this helpful article from MoneySuperMarket – Protect Yourself Against Costly Excess Fees (NOTE: this article is actually about car insurance, but the principles and explanations apply to any insurance policy with an excess)
Can you get rent protection insurance with no excess?
If you want to use a no excess rent protection insurance policy than TheHouseShop’s Rent Protection Insurance could be a good fit for you. The policy covers you for unpaid rent in the event that the tenant defaults and also offers legal expenses cover in the event that you have to evict the tenant or resolve a dispute through the courts. On top of this TheHouseShop will also cover 75% of the rent for up to 2 months post-eviction to allow you the time to find new tenants without losing out on your rental income. And the best part is – you get all of the above with no excess to pay when you make a claim!
You may find that rent guarantee insurance policies with no excess are slightly more expensive than other policies which do charge an excess. So you will have to weigh up the pros and cons and decide whether you want to pay less for your policy or avoid an excess when you make a claim. TheHouseShop’s no excess Rent Protection Insurance starts at just £149 for a 12 month policy, which we think is a small price to pay for comprehensive cover with no excess.
You might also want to check out TheHouseShop’s RentScore Plus service which combines rent collection with rent protection insurance. They also record your tenant’s rent payments with credit ratings agency Experian, so your tenants have the added incentive to make sure they pay on time or risk damaging their credit scores.