Landlord’s rental income protection and alternatives explained:

• Do you need rental income protection insurance cover?
• What problem does this solve?
• What is rental income protection?
• In which other way can a landlord be protected?
• What are the limits provided by the two covers mentioned?
• What is generally not covered?
• Who qualifies for cover?
• What are the pros and cons of rental fee protection insurance?
• How do you report a claim?
• How do you sign up?
• Who is overdue?

Do you need rental income protection, insurance cover?

Landlord insurance isn’t mandatory, but you should consider it if any of the following apply to you:
• you have new tenants and are unsure of their reliability.
• you depend on rent payments to cover your mortgage.
• you anticipate potential financial challenges.
• you want peace of mind regarding rent payments and potential evictions.

What problem does this solve?

Even the most dependable tenants may face financial hardships, leading to:
• non-payment or partial payment of rent (arrears)
• early lease termination (breach)
• leaving without notice (absconding)
managing arrears and breaches decisively can sometimes result in eviction. Typically, an uncontested eviction takes 8-10 weeks, meaning 3-4 months of lost rent while you work to regain possession of your property.

Imagine having the assurance of receiving rental income even if your tenant fails to pay, cancels early, or absconds. With our rental fee protection, your income is safeguarded.

What is rental income protection?

Our rental income protection is a specialized type of landlord insurance designed to cover your rental income of your property portfolio if your tenants are unable to pay. Here are the benefits of our offer:
• three months’ coverage for income loss due to tenant non-payment
• one month’s coverage for absconding tenants
• one month’s coverage for early lease termination
• up to r50 000 coverage for legal fees related to rent recovery and/or eviction for residential properties and up to r150 000 for commercial properties.
• no waiting period
• no excess
our rental income protection is exclusively available to our landlords from just 3.5% (including vat) of the monthly rent. With this protection, you can have peace of mind even if your tenant fails to pay rent. Should you be an estate agent, developer or property tycoon, feel free to enquire about our loyalty program.

In which other way can a landlord be protected, if the tenant fails the minimum credit score?

Legal fee expense is in many ways a suitable replacement ensuring financial protection, in the eviction proceedings against tenants from both commercial and residential premises. This will cover the landlord be it a company, trust or individual.
But you will also enjoy cover for:
• civil and criminal legal action
• CCMA, labour matters
• bail application
• arbitration
depending on insurer, you should also be covered for: legal drafting of contracts, hr related support, last will and testament drafting, limited f2f consulting and debt collection, 24/7/365.
Just remember the rental income protecion is tailored for the rental industry, reacting proactive to the call but in qualifying the tenant, credit score screening is compulsory.

What are the limits provided by the two covers mentioned?

Rental fee protection:
• residential R50 000
• commercial R150 000
legal fee expenses:
• R150 000 or
• R250 000, you choose.

What is generally not covered?

For a more defined list of exclusions we suggest obtaining a quotation, to which you’ll receive a comprehensive quotation, inclusive.
• events that have occurred or might occur before the policy cover started.
• claims or costs incurred without the involvement of the managing agent and the brokerage.
• late claims – a rental claim may only be submitted within 30 days of the rental due date.
• any loss covered by another comprehensive insurance policy.

Who qualifies for cover?

• landlords who can demonstrate property ownership or investment and have a valid written lease agreement with a qualifying tenant.
  •  existing tenants in good standing (no outstanding rent) with the landlord.
  •  in qualifying the tenant, new tenants must meet specific qualifying criteria, including minimum credit scores.
  •  properties that are maintained according to the lease agreement.

What are the pros and cons of rental fee protection insurance?

Pros:
•  financial protection: covers loss of rental income due to tenant non-payment, early lease termination, or absconding.
•  legal expense coverage: is a custom insurance solution that provides cover for legal fees associated with rent recovery and eviction processes.
•  peace of mind: provides assurance that your income is protected, reducing stress and financial uncertainty.
•  no waiting period or excess: immediate coverage without additional costs when filing a claim.
•  tenant screening: often includes tenant screening services, ensuring reliable tenants and reducing the risk of issues.

Cons:
•  cost: adds an additional expense to your budget, which may be a consideration for some landlords.
•  exclusions and limitations: policies may have specific exclusions and limitations, meaning not all scenarios are covered.
•  qualification criteria: both landlords and tenants must meet certain criteria, which might exclude some from obtaining coverage.
•  dependence on provider: the quality and reliability of the insurance depend on the provider, so choosing a reputable company is crucial.
•  complexity: understanding the terms and conditions of the policy can be complex and may require careful review.

How do you report a claim?

• Call 086 108 6000
• Send an email to letschat@overdue.co.za or info@staysure.co.za
• As for debt collection, click https://www.overdue.co.za/start-debt-collecting the appointed attorney or advocate will contact you.

How do you sign up?

• Call 086 108 6000
• Send an email to letschat@overdue.co.za or info@staysure.co.za
• As for debt collection, click https://www.overdue.co.za/start-debt-collecting

Who is overdue?

Our rental fee protection and legal fee expense cover are short-term insurance products, brought to you by stay sure insurance brokers (pty) ltd, fsp 2635, please see https://insurancebroker.co.za/. Stay sure is also a member of the financial intermediaries association (fia). Our debt collection is offered by a national footprint of qualified attorneys and advocates.