This can be confusing.

With your property owners policy you should have the option to cover ‘loss of rent’. This is to cover the rental income if the property cannot be inhabited due to an insured event – fire, flood etc. It does not cover losing rental income if the tenant does a runner. Most people opt for loss of rent cover for up to 12 months but for some properties, especially if listed as Grade I or II, this may not suffice.

So, that’s you sorted out as the landlord. What about your now homeless tenants? Most policies either provide “alternative accommodation” cover as part of the standard cover or as an add-on.

We would always recommend legal expenses cover which insures for coasts incurred in respect of: disputes with tenants; prosecution for not complying with the law relating to rental properties; disputes with supplies; pursuing unpaid rent etc. A common extension is “rent guarantee”. The standard policy covers the pursuit of lost rent but does not provide any guarantee that you will be paid and, let’s face it, if your tenant has not paid the rent, it may be because they just can’t pay. Rent guarantee extends to policy so that the insurer pays your rent if the tenant doesn’t. It is NOT a way of covering the fallow period between rentals.

What is difficult to understand is landlords who do not take out loss of rent cover – which is quite inexpensive. After all, surely the point of letting a property is to have an income from it?

We have a number of insurers for residential, commercial, mixed and unoccupied properties so please ask for a no-obligation quotation.