Land Lord Rent loss insurance!?

Question

Bp,

I was listening to a  Re pod cast a couple days ago. the topic was  Landlord Rent Guarantee Insurance.  My regular insurance policy covers rent loss, but only in the event of a catastrophic occurrence  ( fire , flood, etc).

This insurance seems different though , they claim to guarantee your rent is paid even if your tenant defaults? My properties  are in  landlord friendly states were a evection process isnt really a problem ( 10- 30 days to get a tenant removed if the landlord files first in most cases ), but this could be major in states like CA were it can take up to 6 months to remove a non paying tenant. Not to mention the new rent control laws they passed that makes it harder now to evict a bad tenant. (applies to mfh owners  or sfh owned by big corp ) Why is this not being talked about?  Has any body heard of such a thing? is it legit? is it worth it?

Greg M. · Answer

It's been brought up on these forums a few times before. From what I recall it was something like $10-$30 per month depending on how many months you wanted to have covered.

I guess if you only have one unit in an extremely tenant friendly state and the loss of rent would crush you, it might be a good idea. I'd rather just have a reserve fund for hard times instead of paying an insurance company for such a minor loss of income.

John Underwood · Answer

Sorry I didn't see the link.

I looked at it, but I'm sceptical this is worthwhile.

Maurice Smith · Answer

never heard anything about it either until a couple days ago , i attached all info in the link

Jason D. · Answer

@Maurice Smith insurance companies are in business to collect more in premiums than they pay in claims. Unless it is extremely cheap (which I'm sure its not), it would be more worthwhile to just have proper reserves.

John Underwood · Answer

Never heard of such insurance. If it were a real thing I think it would be very expensive.