Rent Guarantee Insurance

Rent Guarantee Insurance

Everyone knows Murphy's law "Everything that can go wrong, will go wrong".  How true is it?  Anyone who has ever owned an apartment and rented out the rooms knows that everything can go wrong, and the more people you count on, the more likely something, somewhere, with one of them will go wrong.

In good times and bad, people lose their jobs.  This can either happen to anyone, and it can happen to tenants.  Although you may be safe from being laid off, there are many people that you may count on as a landlord to pay your bills.  In addition to lay offs people can get sick, have accidents, have mounting bills or have some other problem that runs over into their financial life.  It isn't uncommon, it happens to most of us.

Over the years, no matter how hard you try, you will probably end up with a person who can't pay their rent and in some cases they try to avoid you or run off.  This is why rent guarantee insurance exists.  It will cover some of the rent owed for a set amount of time making the damage done by any troublesome tenant less financially damaging.

Will it Cover all the Costs?

Not necessarily.  There is normally a limit to how long the insurance will cover loss of rent.  That limit can range from one month to several months.  There may also be a price ceiling per year depending on the plan you have.