If you got into rental properties for the extra money it would bring in or even as a primary source of income, you know how complicated things can become when tenants fail to meet their monthly obligations. It can take a long time before the legal system allows you to remove the tenant and replace it with a paying occupant, and this could create financial havoc. The experts at www.rentrescue.com recommend a rent default insurance plan to keep you on the firm financial ground despite unreliable tenants.
Who is Eligible?
The coverage options with this form of insurance are weighed against the units and tenants and do not deal strictly with the landlord. For a property to be eligible, it must usually be long-term rentals with single-family homes, multi-family dwellings, condos, or townhomes. These policies don’t provide coverage for areas of injury or damage liability, as these are often covered through a landlord policy. However, a landlord plan won’t offer financial help when a tenant defaults on the monthly contract.
Qualifying for Coverage
As a landlord, your coverage depends on the eligibility of your tenants. The tenant must be free from evictions and bankruptcies for five years, may not currently be arrears on rents, and must have the ability to meet the financial obligations of the lease. Check with an agent to confirm the eligibility of your tenants or units.