Is it cost effective to take out a rent insurance policy for ASTs, some of which pay 6 months up-front and then rollover? These policies seem not to pay up until the tenant is at least 2 months in arrears and the policies have a standard excess equivalent to one month's rent. The managing agents rent guarantee only lasts for the first term of the tenancy. I have found that if tenants become up to two months in arrears (despite demands for rent settlement) they usually leave the property without notice and without a forwarding address, so some of the insurance policies I have looked at become voided upon vacant possession. I also do not want to buy a policy for 6 or 12 months if the tenants are likely to leave before that time.
If these policies are considered worthwhile, can anyone recommend a good insurance provider, please?