Rent guarantee insurance covers your lost rent if your tenants don't pay you. If you rely on your rental income to pay your mortgage, that monthly rental payment from your tenants is essential.

Who should get rent guarantee insurance?

Non-payment of rent can happen to any landlord, however careful you are when choosing your tenants and whether or not you use a lettings agent.

Non-payment is even more of a risk when the economy is stretched and money is tight for people. All it takes is for your tenants to fall on hard times and they might suddenly be unable to pay their rent.

If you're a landlord, rent guarantee insurance is a way of protecting yourself. It'll help you to make sure you never face serious financial challenges due to non-paying tenants. This can give you peace of mind that you'll never default on your buy to let mortgage.

Now you're no longer wondering 'what is rent guarantee insurance?'. That means you can start looking for the right rent guarantee insurance for you.

On this page you can find rent protection insurance by doing a landlord rent guarantee insurance comparison.

Do you need rent guarantee insurance?

Having guaranteed rent, for landlords, can often be a lifeline.

If you use the rental income you get from your tenants to pay your mortgage, having rent guarantee insurance can be an especially good idea. Ask yourself: Could I still pay my mortgage if my tenants suddenly stopped paying? If the answer is no, you might like to get rent protection insurance.

What does rent protection insurance include?

Exactly what you get with your rent protection insurance will depend on your specific policy. But, generally, rental insurance covers your rental income and legal expenses. For this reason, you might hear it being called 'rent guarantee and legal expenses insurance'.

You can usually claim if your tenant doesn't pay rent for more than a month, or if you have to evict your tenant.

Remember that rent guarantee insurance doesn't usually cover the following:

  • Lost rent if your property's unsafe to let, or vacant periods

  • Claims made within the first 90 days of your policy

  • Claims not reported quickly enough (for example, within 60 days)

  • Claims against tenants who have a history of defaulting on their rent

  • Claims made against asylum seekers.

The legal side of the insurance can be helpful if you get into a legal dispute with your tenant. Without insurance, this could be expensive and could also take a lot of your time. You can get legal expenses insurance as part of your landlord policy, or your rent protection insurance. Or you can get it as a separate policy on its own. Don't forget to check the limit on how much you can claim.

Here's some more information about how rent guarantee insurance works.

Can I get rent guarantee regardless of who my tenants are?

It's important to remember that landlord rent guarantee insurance doesn't actually cover all types of tenants.

If your tenants have missed payments in the past, you might not be able to get rent guarantee insurance. That's because it's too risky for insurers to offer rent guarantee insurance for tenants who are prone to not paying.

Some policies only cover certain types of tenants, such as professionals. Others exclude types of tenants, such as asylum seekers. You might also find it harder to get rent guarantee insurance for tenants on housing benefit. Check your policy carefully so you don't get caught out.

Most rent protection insurance companies need to see references for your tenants, or to know that they have a guarantor. The reference would need to be written, and could come from a former landlord, an employer or a lettings agent. They might also need to have a credit check.

Is rent guarantee insurance for tenants included in all landlord policies?

Rent insurance is an optional extra with most landlord insurance policies. If you want to add it to your policy, you'll have to pay extra for it.

If you don't add rent guarantee to your cover, you won't be able to claim if your tenants default on their rent, or if you need to evict them.

So you'll need to decide whether it'd leave you in a sticky situation if you didn't have your rental payments coming in. If it'd leave you unable to pay the mortgage, it's worth thinking about putting landlord rent guarantee in place.

How do I do a landlord rent guarantee insurance comparison?

Our landlord rent guarantee insurance comparison doesn't include all landlord insurance policies. It only includes those which let you add rent guarantee to your cover.

But, if you don't think you need landlord rent guarantee insurance, then compare as many quotes as possible to find the best policy for you.

You can also look at rent guarantee insurance reviews. You'll be able to see what other people think of the rent guarantee companies you're considering.

Landlord rent guarantee insurance seems like a good idea, but how long should I get it for?

When you take out your insurance, rent guarantee companies usually offer six or 12 months of cover, to tie in with the length of the tenancy agreement.

What should I look for to find the best rent guarantee insurance?

When it comes to finding the best rent guarantee insurance for you, there are a few things to look out for.

You should check:

  • the excess fee you'd have to pay to make a claim

  • any exclusions from your policy

  • how much you can claim

  • that it covers the type of tenants you have (for example, if your tenants are asylum seekers, you'll need to make sure it would cover you for this)

  • the price

How much does rent guarantee insurance cost?

The price depends on the specific rent guarantee policy you choose. The important thing to remember is that the price of the insurance is tax deductible against your rental income.

The factors that can affect rent guarantee insurance cost include the type of property your tenants are in and the type of tenants you have. It can also be higher or lower depending on how much rental income the property brings in.

You should also check the excess charge you'd have to pay to make a claim. This is often as much as a month's rent.

When it comes to landlord rent guarantee insurance. cost is an important factor. But it's most important to make sure you have the level of cover you need.

Doing a rent guarantee insurance comparison is free, quick and easy so you can find the right insurance for your needs.

How much does rent insurance pay out?

This depends on the tenant default insurance policy. It usually pays out up to an agreed amount per claim you need to make.

When should I take out rental insurance?

The earlier you take out rental guarantee insurance, the better. That's because there are often several limitations on when you can make claims.

For example, you can't usually claim on your landlord rent insurance until your tenant is a month in arrears.

You also can't usually claim on your landlord rental insurance within 90 days of the policy starting.

And you can't usually get rent insurance, UK wide, if your tenants have defaulted before.

For these reasons, it's a good idea to take out your rental insurance at the earliest possible opportunity.

Rent guarantee FAQs

Q

How many properties can I cover on a rent guarantee policy?

A

You can only cover one property on a rent guarantee policy, so you will need a policy for every property you need covering.

Q

Do I have to pay an excess if I claim?

A

Yes, this is usually equal to one month's rent but it may be a fixed amount, for example 500.

Q

Will I have to reference check my tenants?

A

Yes, most rent guarantee policies need your tenants to be referenced before cover starts. Some also ask your tenants to be credit checked.

Q

Can I get cover if my tenants have missed rent before?

A

Most insurers will not offer cover if you rent to tenants who have a history of defaulting on their rent.

Q

How long does the policy cover me for?

A

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.

About our landlord insurance comparison

Q

Who do we include in this comparison?

A

We include landlord insurance policies from our panel of direct insurers and brokers, who are regulated by the Financial Conduct Authority (FCA). Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and it does not affect the deal you get.