What is landlords rent guarantee insurance?
Rental guarantee insurance is a risk management product that protects landlords against loss if a tenant defaults. This insurance pays the monthly rent for a set period of time when the insured tenant stops making payments. Rental guarantee insurance is a type of insurance policy for landlords that covers rent if it is not paid by tenants. Unlike insurance policies that cover rent that is missed due to external factors such as fires, this insurance policy works if the rent is not paid because the tenant no longer pays.
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. Rent guarantee insurance can protect you and your real estate investment from income interruptions due to unpaid rent. The rental guarantee insurance covers the missed rent, as the name suggests. Landlord insurance or rental property insurance covers property damage and also includes liability insurance in the event that a tenant or visitor is injured on the premises.
However, landlord insurance does not cover the costs of a missed rent payment. Rent guarantee insurance, also known as tenant loss insurance, is a common type of coverage that you can add to your landlord insurance. It can protect you from severe financial impact if tenants don’t pay their rent. Steady is supported by a Fortune 100 insurance company and offers landlords access to rental guarantee insurance for their rental properties.
Landlords who are concerned about falling behind on mortgage or tax payments, savings, or other bills paid with income from their rental properties often purchase rental guarantee insurance as a safety net to ensure that their income generating asset doesn’t become a costly Liability or worse will be foreclosure or ruined credit. There are some cases where rental guarantee insurance does not cover unpaid rent, including non-compliance by the rental landlord or non-compliance with the rental property. Landlords simply choose the rental guarantee insurance they need and choose a coverage period of between six weeks and six months per year. 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.
Rental guarantee insurance is a type of landlord insurance that can cover your rental income if your tenants are unable to pay their rent. Steady’s rental guarantee insurance covers six weeks to six months of loss of rent per year and allows landlords to initiate the eviction process (if necessary) without sacrificing monthly rental income. This is where rent protection insurance such as landlord rental guarantee insurance can make the difference. Rental guarantee plans may be available as rental guarantee insurance for both residential and commercial landlords in your area.
Just because a landlord has a rental guarantee insurance doesn’t mean that a tenant gets a free ticket for the rent. In return for an insurance premium, a landlord receives a rental guarantee — namely that the insurance company will provide the lessor the lost monthly rent payments for a set period of time, as stipulated in the insurance contract. Rental guarantee insurance is a valuable insurance policy for many landlords who want rental income protection. Rental guarantee insurance is a form of insurance that can protect landlords against loss of rent if the tenant defaults.