Rent guarantee

Rent guarantee is a form of insurance where for a relatively small annual fee, landlords can protect a lot of rent. Normally Landlord Rent Guarantee Insurance is combined with Legal Assistance Insurance whereby the landlord's legal costs of recovering rent and/or evicting a non-paying tenant are covered.

Generally the insurance pay out only kicks in after one month. It is usually a condition of such policies that the landlord ensures that their tenants are professionally credit checked before handing over the keys.

It is a very useful form of insurance, particularly where landlords let their property without a letting agent, as the necessary checks involved actually tend to deter rogue tenants who would otherwise gravitate towards properties being let privately.

All companies actually underwriting such policies must be registered by the [http://www.fsa.gov.uk Financial Services Authority (FSA).]