Landlord Rent Insurance Vs Income Protection Insurance

[Wurzel Of Highbridge]

http://www.your-move.co.uk/newsletter/safeashouses.html

Just reading the latest yourmove newsletter which advertises landlords insurance at 2.5% of the rent. It comes with the benefit of immediate payout and covers 6 months rent.

IF you were on an interest only mortgage would it be better to rent to yourself and cover yourself with this insurnace rather thann expensive income protection insurance (which incidentally gives you about the same amount of cover)? Last time I looked at income protectin insurance in 2006 a policy that paid out right away was very expensive.

- If your tenant defaults the policy covers 100% of monthly rent for up to six months of your contract, until vacant possession is obtained, or until your property is re-let (whichever is sooner).

- Includes any legal costs arising from regaining possession of your property from a tenant, providing the tenant is in rental arrears. So you should be able to avoid any sizeable fees.

- Unlike some agents YOUR MOVE Lettings will be able to identify when a claim needs to be made.

- We will automatically credit your account 30 days later in the event a tenant does not pay – you need take no action. We will even pay out whilst legal proceedings are in force.

- Our cover costs just 2.5% (plus Insurance Premium Tax) of your monthly rent during any tenancy.

- For example that's only £13.25 on a £500 monthly rental (including Insurance Premium Tax) - a small price to pay for peace of mind.

- See more at: http://www.your-move.co.uk/newsletter/safeashouses.html#sthash.gTnx01XY.dpuf

[SarahBell]

What requirements do they have on you having checked the credit worthyness of the tenant?