What does landlord rent guarantee insurance cover?
Rent guarantee insurance covers the monthly rental payment if your tenant doesn’t pay. All policies differ, but if you buy through Confused.com you’ll get:
- Up to £50,000, with no monthly rental limit
- Lost rent for up to 12 months
- Up to £50,000 towards legal expenses
There’s no excess on rent guarantee cover bought through Confused.com.
Tenant default insurance is only available alongside legal expenses insurance through Confused.com. The legal expenses insurance includes cover to repossess the property, evict tenants and recover rent arrears as well as giving you access to legal advice.
Along with legal expenses cover, you’ll also need to take out property owners’ liability insurance when you take out rent guarantee insurance.
Property owners’ liability insurance provides cover if a tenant or visitor seeks compensation for injury, or for damage to their possessions, at your rental property – you can choose between £2,000,000 and £5,000,000 of property owners’ liability cover.
What's not covered by rent guarantee insurance?
There’s certain things that rent guarantee insurance won’t cover:
- Commercial properties
- Selling the property
- Certain types of tenant, such as students or the unemployed
- Contract disputes
- Tenants moving out
- When you start the policy
Commercial properties, like offices or places of work, are not covered by rent guarantee insurance. However, by selecting commercial insurance in our quote process, you can add rental income protection to your policy.
Selling the property means your rent guarantee insurance payments will stop. The insurance will stop when you put the property on the market.
Certain types of tenant, such as students or the unemployed, will often not be covered by rent guarantee insurance as they’re viewed as being at higher risk of defaulting.
Contract disputes may not be included in the cover for legal expenses.
Tenants moving out means the rent guarantee insurance pay-outs will end. Including if the tenants leave voluntarily or are evicted. You won’t be covered while you find a new tenant.
When you start the policy may affect when you can claim. If you took out rent guarantee insurance before the tenancy agreement was signed, you’ll usually be unable to claim on the policy for 90 days. This varies between providers, so check before you buy.
What our home insurance expert says
Rent guarantee insurance gives you a safety net if your tenant can’t pay their rent for any reason. It's worth adding it to your existing landlord insurance policy so you don’t lose out on income.
Home insurance product manager
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