Does mortgage protection cover me against a tenant defaulting on their rent payments?
Mortgage protection is at the simplest an insurance policy designed to repay the outstanding mortgage balance upon the death of the policyholder. It is, in other words, nothing to do with the tenant, or whether they pay their rent. Landlord protection policies are available, and many rental agents offer this, often free during the first 6 months of the tenancy. In order to offer this insurance the tenants have to be properly vetted; the policies themselves are provided by insurance companies (do a Google search on 'Landlord Insurance.') and they can cover such things as loss of rent and legal costs.
Incidentally, do make sure that your buildings insurance is for the property to be rented out - otherwise you might not be able to make a claim if need be. | 12.07.10 @ 21:51
Quite simply, no they don't. | 12.08.10 @ 05:06
If you have mortgage payment protection for property you are renting out I would check your policy document as these plans usually require that cover be taken out for your 'primary residence' only. | 12.12.10 @ 18:37