Landlord insurance with rent guarantee bundled in is sold by most insurers and by every letting agent, and it is usually a little cheaper and a lot simpler than buying the two separately. The conditions are the same either way, because they come from the underwriter rather than the packaging, but the claims experience differs when one insurer holds both halves.
What a bundle usually contains
The standard landlord sections plus rent guarantee for a stated period, commonly six or twelve months, with legal expenses for possession proceedings alongside. Some bundles include a percentage of rent for a period after possession is recovered, which covers the void while the property is relet. Read for that, because it is worth real money and is not universal.
Why one insurer is easier at claim time
A tenant in arrears who has also damaged the property produces two claims that interact: the possession action, the arrears, and the repairs. One insurer handling both means one adjuster, one solicitor and one timeline. Two insurers means two sets of paperwork and two opportunities for each to say the other should pay.
The conditions do not soften because it is bundled
Referencing to the insurer's standard before the tenancy, a written tenancy, a protected deposit with prescribed information served, the compliance documents given to the tenant, and prompt notification of arrears. A bundled product is not a relaxed one, and the commonest reason for a declined claim is still referencing that was never done.
When buying separately is better
Where your landlord insurer will not offer rent guarantee on your tenant type, where a specialist offers a longer period, or where you want rent guarantee on some properties and not others. Portfolio landlords frequently do the last of these, insuring the rent on the properties that carry a mortgage and self insuring the rest.
Questions people ask about landlord insurance with rent guarantee
Is a bundle cheaper than buying separately?
Usually a little, and it is always simpler. The bigger advantage is one insurer handling a claim that involves both arrears and damage.
Are the conditions easier on a bundled product?
No. Referencing, the written tenancy, deposit protection and prompt notification are underwriting conditions and are the same either way.
Does the bundle cover the void after possession?
Some do, at a reduced percentage for a stated period. It is worth real money and is not universal, so read for it.
Can I have rent guarantee on only some properties?
Buying separately, yes, and portfolio landlords often do, insuring the rent where there is a mortgage and self insuring elsewhere.