Rent Guarantee Insurance for Landlords
Protect Your Rental Income
Rent guarantee insurance pays your rent if a tenant stops paying, and usually covers the legal costs of getting your property back. It gives landlords a safety net when things go wrong.
We work with the UK's leading rent guarantee insurance providers. Submit your details and get a competitive quotation.
✅ Covers unpaid rent ✅ Legal expenses included
✅ For private landlords ✅ Quick online quote
What Is Rent Guarantee Insurance?
Short answer: rent guarantee insurance is a policy for landlords that pays the rent when a tenant falls into arrears, up to a monthly limit and for a set period. Most policies also include legal expenses cover to help you regain possession.
It's different from landlord buildings or contents insurance, which covers damage to the property. Rent guarantee cover is about income. For landlords with a mortgage on the rental, a few months of missed rent can be hard to absorb, which is why many take it out.
What Does Rent Guarantee Insurance Cover?
- ✅ Unpaid rent, up to a monthly limit, often until you get the property back
- ✅ Legal costs to recover the property through the courts
- ✅ Sometimes, a share of rent after the tenant leaves while the property is relet
- ✅ Sometimes, costs to pursue the tenant for the debt
Limits, excesses and the length of cover vary a lot between policies, so check the schedule before you buy.
What Isn't Covered?
- ✅ Arrears that started before the policy began
- ✅ Tenants who weren't referenced to the insurer's standard
- ✅ Damage to the property, which is a landlord insurance matter
- ✅ Empty periods with no tenant in place
- ✅ Claims where the landlord broke tenancy rules, such as not protecting the deposit
- ✅ Disputes the landlord knew about when the policy started
Conditions You Usually Need to Meet
Insurers expect the tenancy to be set up properly. Missing one of these can mean a claim is refused:
| Condition | Why it matters |
|---|---|
| Full tenant reference | Must be passed before the tenancy starts. See tenant referencing. |
| Deposit protected | In a government-approved scheme, with the prescribed information served |
| Safety certificates | Gas safety certificate, EICR and EPC given to the tenant |
| Right to Rent | Checked before the tenancy, in England |
| Report arrears quickly | Most policies set a time limit to tell the insurer |
Read the GOV.UK tenancy deposit rules if you're unsure. An unprotected deposit can weaken your case and your claim.
How Much Does Rent Guarantee Insurance Cost?
Premiums are usually charged per year, per property. The price depends on:
- ✅ The monthly rent and the limit you choose
- ✅ The excess, often the first month of arrears
- ✅ How long rent is paid for in a claim
- ✅ Whether legal expenses are included
- ✅ The tenant's reference result
As a rough guide, many policies cost a small percentage of the yearly rent. Compare the cover, not only the price.
Is Rent Guarantee Insurance Worth It?
Short answer: it's often worth it if you rely on the rent to pay a mortgage, own one or two properties, or couldn't cover several months without rent plus legal fees. It may be less needed if you have strong savings, a guarantor in place or a long record with the same tenant.
A guarantor is the main alternative. A guarantor promises to pay if the tenant doesn't, but you may still need to chase them. Insurance pays you directly and covers legal costs, so many landlords use both.
The Renters' Rights Act and Rent Arrears
In England, the Renters' Rights Act has changed how landlords regain possession. Section 21 "no-fault" evictions have ended, so landlords now rely on Section 8 grounds such as rent arrears. Possession for arrears can take longer, which is one reason more landlords now look at rent guarantee and legal expenses cover. Check the current rules and notice periods with your insurer or legal adviser.
Need a tenant first? Advertise your property to rent free on Proptino.
Frequently Asked Questions
What does rent guarantee insurance cover?
It usually covers unpaid rent up to a monthly limit and the legal costs of regaining possession. Some policies also cover part of the rent while a property is relet.
How much is rent guarantee insurance?
It depends on the rent, the cover limit, the excess and whether legal expenses are included. Many policies cost a small percentage of the annual rent.
Do I need to reference the tenant?
Yes, in almost all cases. The tenant must pass a full reference that meets the insurer's standard before the tenancy starts.
Can I get cover for an existing tenant?
Sometimes. Many insurers accept existing tenants who have a clean rent record, often with proof of several months paid on time. Arrears that already exist are not covered.
Is rent guarantee insurance the same as landlord insurance?
No. Landlord insurance covers the building and contents. Rent guarantee insurance covers lost rent and legal costs.
How do I check an insurer is regulated?
Search the firm on the FCA register. Insurers and brokers selling rent guarantee cover in the UK must be authorised