A recent Guardian article suggested that the UK economy is looking increasingly troubled, with manufacturing output declining, the crisis in the steel industry and poor import and export figures all contributing to a gloomy prognosis. The article also mentions how businesses across the board have curbed spending and hiring plans, and jobs are being lost in all sectors as companies adapt to uncertain times.
Although this situation is worrying for everyone, landlords are especially vulnerable to economic downturns. Even if they are careful to weather the financial turbulence, invest wisely and always keep something to fall back on, their tenants may not be as sensible or as lucky. If someone loses their job, they may end up in arrears on their rent and despite their best intentions to pay may end up owing several months’ back payment. This is why it is vital that all landlords have rent guarantee insurance, especially in these uncertain economic times.
We’ve got your back
If you have a rent guarantee insurance policy in place from Alan Boswell Group, we will actually cover the rent money you are due while your solicitor pursues the tenants for the money they owe. It can be purchased as an extension to our legal expenses cover and will pay out up to a maximum of £25,000 or 12 months’ rent, whichever is reached soonest.
Our landlord legal expenses cover will also help you with the costs of pursuing a tenant who is in breach of the tenancy agreement. For both of these policies, we offer great value for money, and they really are invaluable should you suddenly find yourself without your rental income.
If a tenant defaults, you will have no money going in while still having money going out. You will need to find the money to pay the mortgage on the property, pay for maintenance and upkeep, and cover all of the other regular costs of running a house. You may also find that the tenant has gone into arrears with utility bills or council tax, which is yet another headache for you to deal with. Then there’s the cost and trouble of finding a new tenant, including agency fees and reference checks.
Like all forms of insurance, rent guarantee insurance also gives you peace of mind even if you never have to claim on it. Don’t let yourself be a hostage to fortune. Call us today on 01603 216399 to find out how we can make sure you’re fully covered.