As a landlord, sometimes you might not be able to rent out your property due to issues with the building. Losing out on rental income can be tough, but loss of rent insurance can help protect your income and give you peace of mind.
What is loss of rent cover?
Loss of rent cover means that you’re protected if your tenants need to move out of your rental property if it’s not safe to live in.
This could be due to a flood, fire, storm or similar event that makes your rental property unliveable.
Loss of rent doesn’t cover you for periods when your rental property is empty because you haven’t found a tenant yet. This can sometimes be covered by unoccupancy insurance, but that depends on your specific policy and insurer.
Do I need loss of rent cover?
Usually, loss of rent is covered as part of your landlord insurance, although it’s worth checking your policy to make sure.
Just like landlord insurance, loss of rent cover isn’t legally required if you’re a landlord. But having landlord insurance in place helps protect your property, and makes sure you can cover the costs should you have any issues with your rental property or the tenants that live in it.
How do I know if my property isn’t safe to live in?
If your tenant gets in touch with you or the letting agency about safety concerns within your rental property, it’s important to look into this so you’re not putting your tenant at risk. You might need to carry out a survey or inspection to confirm whether the property is unsafe to live in.
Even if your tenants don’t report any concerns or issues, it’s important to maintain your rental property and carry out regular safety checks on things like wiring and plumbing to make sure there aren’t any hazards or risks.
Do I already have loss of rent cover?
Some insurers offer loss of rent cover as part of their landlord insurance policies. It’s best to check your policy documents to see if you’re already covered before buying specialist loss of rent insurance cover.
How to avoid loss of rent
Outside of having loss of rent cover, there are a few things you can do to lower the chance of losing out on rent:
- Conduct regular checks of electrics, plumbing and other important elements to make sure you’re not missing any problems.
- Check in with your tenant to see if there are any issues they’re concerned about.
- Do a background check on any new tenants (such as credit, employment and criminal background checks).
- Make sure new tenants give a guarantor in case they’re unable to pay rent.
Using a letting agency as a middleman can also help you keep things in check and handle any issues without directly involving your tenant (if that’s what you’d prefer).
