Rent Guarantee Insurance

Rent Guarantee Insurance for landlords

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What is rent guarantee insurance?

Rent guarantee insurance also referred to as tenant default insurance substitutes your tenant’s rent if they can’t pay it.

Usually after a month without rent, you can claim for a fixed amount of time – normally 12 months – until the tenant’s circumstances change, or they’re evicted.

On most policies, you can only make a claim if:

  • Your tenant has passed all the background and credit checks

  • Your tenant has fallen behind on one-month’s rent, minimum

  • You've filled in the proper paperwork demanding rent. You can find more information on this on GOV.UK 

  • You've started legal proceedings against your tenant by serving a section 8 or section 12 notice.

As soon as your tenant stops paying rent, tell your insurer.

What does landlord rent guarantee insurance cover?

All policies differ, but if you buy through your rental guarantee insurance will cover:

  • 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 policies bought through either.

What are the benefits of rent guarantee insurance?

If your tenant is falling behind on their payments, it could put you in financial difficulty.

Also, evicting tenants can take months of legal proceedings. During this time your tenant won’t be paying rent. 

Having rent guarantee insurance in place means you won’t lose out on income.

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 expert, Jessica Willock's signature
- Jessica Willock, Home Insurance Product Manager

What’s not covered by rent guarantee insurance?

There are a couple of things that rent guarantee insurance doesn't cover.

Commercial properties aren’t covered, for example properties used as offices or places of work.

If you took out cover before your tenant signed the tenancy agreement, you may not be able to claim on the policy for 90 days. This varies between providers, so check before you take out cover.

If you decide to sell instead of finding a new tenant, the insurance payments will stop.

Certain tenants might not be covered. For example, if they’re unemployed or a student. Because of the nature of their circumstances they might be more likely to miss rent payments. Make sure to get the tenant’s references and ask them for full details of a guarantor.

If the tenant leaves the property voluntarily you won’t be able to claim on the rent guarantee policy.

Contract disputes aren’t covered by the rent guarantee policy either.

Does it cover legal disputes with tenants?

Rent guarantee insurance can replace your lost rent, but legal cover can help you with legal issues relating to your tenant and the tenancy.

As we’ve mentioned, if you buy landlord’s insurance through us, you’ll have to buy legal cover in order to get the rent guarantee policy.

Legal cover can help cover fees for other tenant-related issues. For example, if the tenant has damaged your property.

Some policies also offer access to legal helplines and portals which, along with legal advice, have templates for legal notices and tenant letters.

How do I get rent guarantee insurance?

It’s easy to get rent guarantee insurance through, simply select ‘tenant default insurance’ when you get a landlord insurance quote.

You might also be interested in other insurance types Landlord Insurance is provided by Simply Business. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London EC2V 7NG. Our service is free and compares a range of trusted household names. is an intermediary and receives commission from Xbridge Limited which is based on a percentage of the total annual premium if you decide to buy through our website. We pride ourselves on impartiality and independence – therefore we don't promote any one insurance provider over another.