Rent Guarantee Insurance

We are able to offer Landlord Rent Guarantee Insurance via our sister company, HomeLet, who administer Landlord Rent Guarantee Insurance on behalf of the Insurer, AmTrust Specialty Limited. Both HomeLet and UKinsuranceNET are trading names of Barbon Insurance Group Limited.

*This is an overview of the cover we provide. Full terms and conditions can be found in the Policy Wording.

What is Rent Guarantee Insurance

Rent Guarantee Insurance – often referred to as Rent Protection Insurance, Tenant Default Insurance, or simply Rent Guarantee – is a form of insurance cover designed to help with rent arrears and resolve tenancy disputes requiring possession.

It acts as a safeguard, should your tenants become unable to pay their rent. If they cannot pay, Landlord Rent Guarantee Insurance kicks in, mitigating arrears, and providing professional services to help provide a solution.

Even the best tenants can fall on challenging times.

While it’s natural to be sympathetic, your rental income still needs to be paid. And if tenants can’t pay, that’s where Landlord Rent Guarantee Insurance comes in.

UKInsuranceNet are working with our sister company, HomeLet, to offer Rent Guarantee cover to our customers.

If you want to discuss this please call us on 01325 346 141

Why rent guarantee insurance matters under the Renters’ Rights Act

From 1 May 2026, the Renters’ Rights Act changed the way landlords can regain possession when tenants fall into arrears:

• Section 21 “no‑fault” notices have been abolished;
• The mandatory rent arrears ground now requires 3 months’ rent arrears, up from 2;
• The minimum notice period has increased from 2 weeks to 4 weeks.

In practice, this means a tenant can be around 4 months in arrears before you can even begin possession action under the mandatory rent arrears ground.

At the same time, existing court backlogs and bailiff shortages mean cases can take months to work through the system. That combination – more arrears required before action and longer journeys through the courts – increases the risk of:

• Prolonged loss of rental income;
• Rising legal costs;
• Greater strain on your own cash flow.

Rent guarantee insurance is designed as a practical response to this new legal landscape. It helps cover missed rent and legal expenses while you wait for the courts, giving you more certainty over your income when you have less control over timelines.

What does it cost landlords when a tenant stops paying rent?

If you do not have rent guarantee in place and a tenant stops paying rent, you may need to fund every step of the legal process yourself.

Our sister company, HomeLet, has shared their most recent guide, which shows that the average legal cost to evict a non‑paying tenant is between £2,000 and £3,000, before you even factor in the rent lost while you are waiting for a court date and bailiff appointment.

You can present the costs in a simple, stage‑by‑stage summary like this:

Stage 1 – Serving notice

Stage 2 – Legal proceedings

(Further hearings, defended claims or complex cases can add additional fees.)

Stage 3 – Enforcement

All above pricing based on Legal for Lettings website May 2026 (Landlord Solicitors | Landlord Legal Advice | Legal for Lettings)

Even at the lower end of these estimates, costs build quickly. Rent guarantee insurance can cover these professional legal fees (subject to policy terms and limits), so you are not left paying thousands of pounds out of pocket to enforce your rights as a landlord.

The scale of the problem: court delays and rental losses

Court and enforcement delays mean the financial impact of arrears is not limited to legal bills. As arrears accumulate while you wait for hearings and bailiffs, the lost rent can be substantial.

From the CourtWatch data in the guide:

• The average loss per possession claim is £8,684;
• The highest losses reach £27,436 for a single case;
• The median loss sits at £7,725, with the lowest observed around £4,312.

Delays are not evenly spread across the country. In some areas:

• Average court delays are around 5 months, with 23 courts showing delays increasing further;
• Peterborough, for example, has seen its average delay increase by 3 months to around 7 months;
• The worst‑hit areas for rental loss are mostly in London and the South East, where higher rents and longer timelines combine to push losses into the tens of thousands of pounds.

Rent guarantee insurance cannot speed up the courts, but it can help bridge the income gap while you wait for a decision, and cover the legal work required to get your property back.

What does rent guarantee insurance cover?

Exact cover will depend on the policy, but a rent guarantee product typically includes:

• Unpaid rent
  Cover for missed rent payments when a tenant falls into arrears, up to the policy’s monthly and overall claim limits, and sometimes for a defined period after vacant possession has been obtained.
• Legal costs for possession actions
  Professional legal fees to serve notices correctly, issue possession proceedings and represent you at court hearings, including preparing documentation and dealing with court deadlines.
• Eviction and enforcement costs
  The cost of instructing county court bailiffs or transferring enforcement to the High Court where appropriate, again up to the policy’s stated limits.
• Support and guidance
  Access to legal specialists who handle the process for you, helping you avoid procedural mistakes that could cause further delay.

What isn’t covered by rent guarantee insurance?

It is also important to be clear about where cover does not apply or is limited.

You can set this out in a simple, high‑level way, for example:

Rent guarantee insurance is not a blanket guarantee for every situation. Typical limitations include:

• Where the property is located
  Cover is usually restricted to properties in Great Britain and Northern Ireland; properties outside these areas are not eligible.
• Claims that do not meet policy conditions
  For example, where tenants have not been referenced in line with the policy requirements, where arrears arose before the policy started, or where notices were served incorrectly.
• Non‑rent related losses
  Damage to the property, void periods between tenancies and general maintenance issues are normally covered (if at all) under different types of insurance.

Click here to see the full policy wording, where you can view the detailed list of inclusions, exclusions and conditions.

Do I need rent guarantee insurance?

Rent guarantee insurance is not a legal requirement, but in the current environment it can be a very practical part of a landlord’s risk management.

Under the Renters’ Rights Act, landlords can now face:

• Tenants being around 4 months in arrears before mandatory possession action can begin;
• Extended court and enforcement delays, which increase both legal costs and lost rent;
• Greater complexity in serving notices and managing the process correctly.

If you rely on your rental income to cover a mortgage, maintain the property or support your personal finances, a prolonged period of arrears and legal bills can be difficult to absorb.

Rent guarantee insurance is designed to provide:

• Peace of mind that your rental income is protected while a dispute is resolved;
• Financial protection against both unpaid rent and the legal costs of enforcing your rights;
• Practical support from legal specialists who manage the process on your behalf.

Whether you need it comes down to your appetite for risk and your ability to carry several months of rent loss and legal costs yourself. For many landlords, the premium is a relatively small price to pay compared with the potential losses shown in the CourtWatch data.