This means that you are personally and legally liable for those funds if a lender calls this debt in and you would have to find the funds to repay that regardless of it being a business debt. This could mean you having to sell or refinance your home, you use your savings or having to sell other personal effects which could leave you bankrupt.

With rental properties, you can take out a Rent Guarantee Insurance which is highly advisable and would run alongside this. A good Rent Guarantee will usually pay the rent if your tenant doesn’t and also your costs for the eviction process up until legal possession is regained.

Some policies will also pay up to 50% of the rent if the property hasn’t been left in an immediately lettable condition. The PG insurance which will pay up to 80% of the liability. This is by referral to a specialist company by clicking here.