What are people's views on rent-guarantee insurance? Is it worth it's money? Do they generally have a kind of 'cooling off' period before the insurance company starts paying it? Would the deposit itself count towards the rent if, for example, tenants left and their deposit was still in the deposit account? Many thanks

There is an insurance which will guaranty the rent if your property can't be let out as a result of some damage like flooding or fire, but not if you just can't find any tenants.

Think, some estate agents offer so called 'gold service' (if you let your property through them and at a premium of course) whereby your rent is covered while they are looking for new tenants.

Actually, I've heard of some company's service, that pays your financial loss, if your tenants fail to pay the rent. And... I've also heard something on the same service's account that the insurance company's got your back in case your tenants move from your property, not paying a penny.
Maybe it seems to good to be true. But probably it would be reasonable to ask your local dealer of such services.

It is definitely worth its price.
You'll be more confident with this insurance.
Also, you can get more options by paying some extra fees. They usually include legal protection, accidental damage cover and employer's liability cover to insure the landlord opposed to any costs devolving through letting the property.
You should specify rates and other information with your broker. It seems the best option, if you have needed wealth of course.

I know a letting agent which will pay you a monthly rent disregarding whether your property is let or not, however they charge 50% of your monthly rental income. I suppose it depends on individual circumstances.

I agree that it depends on your particular circumstances. Rent guarantee insurance is not always appropriate. For example, your tenants will need to pass relevant credit checks (if they are not UK residents, that could prove tricky), there are special restrictive cons for students and those in receipt of housing benefit. Furthermore, dont think its possible to make any claim in the first few months of the start of the policy. To put is simply, it seems that this type of policy will only be issued if your tenants prove to be credit worthy. But if they are, whats the point in taking it out? In my opinion, legal expenses insurance may be a better investment as it'll cover for any breaches in tenancy agreement, sueing tenants for any unpaid rent, damage to the property or removal of squatters.

cat, as far as I know many letting agents provide their customers with rent-guarantee insurance.
when getting a rent-guarantee insurance from an insurance provider it is highly important to may special attention to details such as the period covered by the company (it varies from 60 to 120 days) and the circumstances in which the property is covered.

There are quite a few insurance companies that offer rent guarantee insurance and it's best to shop around. I agree that it's also a good idea to read the small print of the actual policy cover. For example, there could be an excess period of one month or more, you have to put your claim in within the specified period, there are always some exclusions and special conditions that need to be met to make your claim valid (ie deposit and first month rent needs to have been cleared, tenants must have passed credit checks, etc). I could go on and on..., but ultimately, it's up to you to decide what suits your particular circumstances.

Hi, all insurance policies are written in a tricky way, that's why i agree that reading it properly is vitally important, there can be many exceptions and conditions under which you can not use it. And one more thing - as i know such insurance may cover up to 50 per cent of month rental price within three months since successful eviction to the moment a new tenant is found.

Sorry, am one of those guys who hates insurance policies. There are too many of them ( and if they didn't think they'd make their money, they would not offer so many policies (IMG:style_emoticons/default/wink.gif) ) The way it's going, we soon wont be able to breath in or out w/t having an insurance policy! Of course, renting your house is a risk the landlord has to take. But one can always try and put some money away into 'an emergency fund' to cover for stuff like urgent repairs, loss of rent, etc.