Can you insure against loss of rent?
If a tenant can’t or doesn’t want to pay rent, you run the risk of not being able to pay your expenses, potentially damaging your assets, or even losing your property through foreclosure. In return for an insurance premium, a landlord receives a rental guarantee — namely that the insurance company will provide the lessor with the lost monthly rent payments for a set period of time, as stipulated in the insurance contract. In return for an insurance premium, a landlord receives a rental guarantee — namely that the insurance company will provide the lessor with the lost monthly rent payments for a set period of time, as stipulated in the insurance contract. Similar to private mortgage insurance (PMI), rental guarantee insurance offers protection to the landlord and not the tenant.
But lost rent is another way landlords can run out of money. One way to prevent this scenario is to take out rental guarantee insurance. Similar to private mortgage insurance (PMI), rental guarantee insurance offers protection to the landlord and not the tenant. Rental guarantee insurance covers non-payment of rent if a tenant defaults on rent payments that they agreed to in their rental agreement
What is rental guarantee insurance for landlords?
This insurance provides landlords with a guarantee of lease performance and peace of mind that they can protect rental income used to maintain the mortgage, pay property taxes, or maintain the unit. Unlike insurance policies that cover rent that is missed due to external factors such as fires, this insurance policy works when the rent is not paid because the tenant no longer pays. Rental guarantee insurance protects landlords against loss of income if a tenant defaults or defaults on rent payments.
