Dealing with Insurance Agency for Payment from Tenants

[Andrew G.]

There was recently a fire in our neighborhood (Everyone is okay), and possible tenants want to rent our house, but the insurance agency will be making payments on behalf of them. I have never dealt with an insurance agency before to make payments on behalf of the tenant. I worry that I require a 1-year lease, and it will not take 1 year to complete the house, and they leave before their 1-year lease is up. Will the insurance agency cover the difference if the tenants leave a few months early? 

I have a meeting with the insurance agency tomorrow, so I am sure they will answer this question, but curious what other landlords have experienced dealing with insurance agencies? 

[Adam Martin]

I have read posts where they paid a 25-30% premium but don’t expect a 1 year lease they will lease for the expected timeframe for the repairs and go month to month from there.  It is guaranteed rent during a pandemic for a premium and often they will cover damage as well.  It’s also harder to find tenants in January so this will most likely push you to spring or summer when more people are moving and rents are higher.  I don’t know the terms but it has the potential to be a good deal and I would consider it.