If you own a property that you rent out to tenants, whether they are residential or commercial, then you are no doubt receiving a not-insignificant amount of rent for that property, which in some way you rely on.
Many landlords these days say that the rent they receive just about covers their outgoings related to the property, and so if the rent were to stop coming in, this would hit them really hard.
Other than not being able to find new tenants, there are two main reasons why the rent might stop:
If the tenants stop paying their rent
If the tenants can’t or won’t pay their rent, this is going to cause real problems, as the laws and procedures to remedy this are such that by the time you reclaim the property or ideally have the arrears paid, you’ve probably gone a few months without receiving any rent put paying out solicitors fees.
If the property suffers damage
If the property is damage by a fire, flood or earthquake for example, and becomes temporarily uninhabitable, you won’t be getting any rent because nobody can occupy the property for the time being. Depending on how severe the damage is, it could be months before you get somebody in again and paying rent.
So what will Landlord Rent Insurance do?
There are insurance policies that will respond in various circumstances (including the above scenarios) that will pay you the rent until the situation is remedied including any associated costs.
Usually however the above two examples are covered under very different policies, so it’s important to speak to a property insurance broker to ensure you get the right cover – and for a good price!