Rent guarantee insurance covers your lost rent if your tenants do not pay you, which is essential if you rely on your rental income to pay your mortgage.
However, rent guarantee does not cover all types of tenants and you may not be able to get cover if your tenants have previously missed rental payments.
What does rent guarantee cover?
Rent guarantee insurance covers your monthly rental income and legal expenses if:
Your tenant does not pay rent for more than a month
You have to evict your tenant
It does not cover:
Lost rent if your property is unsafe to let, or vacant periods
Claims made within the first 90 days of your policy
Claims not reported quickly enough, e.g. within 60 days
Claims against tenants who have a history of defaulting on their rent
Claims made against asylum seekers
Is it included in landlord policies?
Rent guarantee is an optional extra with most landlord insurance policies, which means you have to pay extra if you need it.
If you do not choose to add rent guarantee to your cover, you will not be able to claim if your tenants default on their rent or you need to evict them.
This comparison only includes landlord insurance policies where rent guarantee can be added to your cover, so compare as many quotes as possible to find the best policy for you.
Rent guarantee FAQs
How many properties can I cover on a rent guarantee policy?
You can only cover one property on a rent guarantee policy, so you will need a policy for every property you need covering.
Do I have to pay an excess if I claim?
Yes, this is usually equal to one month's rent but it may be a fixed amount, for example £500.
Will I have to reference check my tenants?
Yes, most rent guarantee policies need your tenants to be referenced before cover starts. Some also ask your tenants to be credit checked.
Can I get cover if my tenants have missed rent before?
Most insurers will not offer cover if you rent to tenants who have a history of defaulting on their rent.
How long does the policy cover me for?
You can choose a policy that lasts 6-12 months. Your rent will be paid for this fixed period, as long as you make your claim before the policy expires.