Hi All
Today you can buy insurance for just about anything if your willing to pay the price.
Anyone ever try to purchase a policy to cover lost of income due to tenants inability to pay their rent?
Are there any insurance company's that offer this coverage?
I from a landlord's chair would be willing to pay a monthly premium to safe guard against lost rent.
The insurance company would also take on the responsibe of eviction notices, filing judgements etc.
Any thoughts from landlords and insurance folks. Thanks in advance.

Acesfull

never heard of it. I do know of insurance reimbursement from tenant damage though

I googled around and found something called "Rent guarantee insurance". Most of the sites that come up are in the UK, though, so I don't know if this is offered in the U.S. It sounds like what you're looking for.

I don't have rental property yet, but just talked to my broker today about getting approved for a rental property. My "rent guarantee insurance" plan is to put a certain % of the rent income aside into a separate savings account each month and basically self-insure.

Hi TJ, thanks. Just thought this would be a good policy for landlords.Suprised the insurance brain trust haven't thought of it. Good luck on the investment property.
acesfull

I would not think lost rent insurance would be a large profit making adventure. People usually can tell when they won't have any renters in coming months and this would give incentives to be lazy in finding replacements. If every landlord that signs up cashed in on their policy, it would be ridiculously expensive to buy renters insurance compared to your benefits.

Most things that we buy insurance for protect us against things that we cannot predict nor have any control over when it will happen: death, hospital bills, auto accidents, natural disasters ruin your home. It usually involves larger amounts of protection. One month is not going to ruin most landlords budgets, but dying will put a burden on your dependents' budget.

Also, who says when you must stop receiving funds for your vacant land. Will it be like unemployment and you have to show that you worked so many hours to try and get new renters.

Sorry for being critical of the plan aces.

I work in the real estate field and at the present time, at least here in Florida, there isn't any kind of insurance available for loss of rental income. If you have your renters sign a typical rental agreement that states they are to give you at least 60 days notice prior to moving out of your property, then you have a window of 60 days to find new tenants to bring in. If your current tenants default on that rental agreement (i.e. only give you a weeks notice that they are moving out) typically that provides you, the landlord, with some recourse when it comes to retaining security deposits, etc. That varies state to state though.

Your best bet might be checking with your state's department of housing...there should be some landlord tenant law available for you to read through. You might find what your options are in your state via this information.