Rent Guarantee

Why is Rent guarantee insurance important for landlords?

The supply and demand ratio in the rental market is at an all-time critical point, in that, there are not enough properties to accommodate. This, on the face of it, is positive for landlords. However, the adverse effect has resulted in affordability issues, and breakdowns in the security of longstanding tenants. Rents aren’t the only area to see price increases, the universal increase in costs has been consistent across all areas, which has contributed massively to rent payments defaulting.

What happens when a tenant stops paying their rent?

If a tenant can’t (or won’t) pay their rent, and refuses to leave the property, this can be very costly for landlords in terms of time, money and effort. The landlord may need to instruct costly professional services and potentially wait months for a court date and, if applicable, subsequent bailiff date. This process can be very expensive and cost landlords months’ worth of lost rental income.

How can landlords protect themselves?

Our Rent Guarantee Insurance for Landlords comes with a range of benefits, including*:

Insurance for non-payment of rent

Missed rental payments until vacant possession of the property or for up to 12 months, whichever comes first up to a maximum of £50,000 including professional costs.

Continued cover when vacant possession is obtained

Up to three months rental payments at 75% following vacant possession, provided that the property is being advertised or re-marketed for letting. This cover ceases once the property is re-let.

Expert support when you need it most

In England and Wales, our experienced in-house Claims team manage the eviction of tenants with on-site legal support. Across Scotland and Northern Ireland, we use a panel of solicitors.

Cover for professional & claim costs included as standard

Professional costs up to £50,000 (in aggregate with rent payments) to cover eviction costs of the tenant for certain breaches of their tenancy agreement, including expired section 21 notices and non-payment of rent.

Covers breaches of the tenancy agreement

Tenancy breaches by the tenant include non-payment of rent, unauthorised occupants and failure to vacate the property following a valid section 21 notice.

Total rent covered

Rent Guarantee covers the total monthly rent, no matter how many tenants are on the Tenancy Agreement – up to £3,500 per calendar month.

*12 months policy term. Claims payments continue beyond the end of our policy term if appropriate.

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