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Landlord Insurance

Rent Guarantee Insurance

Landlord rent guarantee insurance cover that provides financial and legal shelter from tenant rent non-payment and the problems of possible eviction

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What is Rent Guarantee Insurance?

Rent guarantee insurance is the essential cover and income protection for landlords when your tenants are either unable to pay or simply don’t pay their rent, leading to lost rental income.

A landlord’s income receives substantial protection with a rent guarantee insurance policy from Protect My Let, which in turn means you’re not exposed to shortfalls in your own income or having to use savings to cover a payment gap while you try and recoup unpaid funds or give an eviction notice.

This landlord rent guarantee insurance policy is there to protect and offer a buffer, even when a rent dispute ends up in court. As the legal process around rent non-payment and eviction may take more than six months, having rent guarantee insurance in situ means that even if your tenant is withholding rent entirely, you’ll avoid running into mortgage arrears on the property or other financial difficulties.

What does Rent Guarantee Insurance cover?

*Please note this is available at no extra charge if you take out a policy with MS Amlin. We have a panel of thirteen insurers, most of which offer cover for Legal Expenses.

Our Rent Guarantee Insurance cover in more detail

Now we’ve introduced what rent guarantee cover is and why it’s critical cover for property landlords, let’s build on the benefits of a Protect My Let policy.

Rent indemnity for up to 11 months

When your tenants are one month behind on their rental payments, put in a claim and this will be covered for up 11 months – that’s almost a year’s worth of rental income, plus much-need peace of mind. Which, as this often results in a litigious outcome, leads us on to….

Legal costs covered up to £50,000

Once the legal ball starts rolling on unpaid rent, things start to get costly. That’s why you’ll need the buffer of up to £50,000. This part of your landlords rent guarantee policy includes financial payment for:

Contract disputes
Legal action and defence
Recovery of debt
Eviction
Court proceeding costs

Repossession

This is where your tenant refuses to move out altogether and you need to reclaim your rented property. This is also a stressful process in addition to the non-payment, especially if there is evidence of any deliberate damage to your property.

Legal and tenancy eviction: Critical for when non-paying tenants need to be sued or removed

The eviction of non-paying tenants must always be a last resort, and the word should only be applied after all other methods of legal recourse – formal letters, contact with guarantors etc, have been exhausted or ignored. But once an eviction notice is officially served, this is the point where rent guarantee insurance really earns its keep. Your tenant may try and remain in the property or cause malicious damage – so adequate cover for these additional missed payments and repair is essential.

While these four key benefits provide the foundations of PML’s rent guarantee insurance policy, the added layer of excellence comes from the team that support these pillars. This isn’t one-size- fits all insurance and neither is it one person-answers-everything at the customer service and account management end. We care about every one of your rental concerns and utilise our knowledge and insight to deliver solutions and bear the weight of your landlord stress – even when it may feel like the roof’s falling in!

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Why choose Protect My Let?

FAQs

Is Rent Guarantee worth it?

Whether rent guarantee insurance is worth it depends on your individual circumstances as a landlord. It offers financial protection and peace of mind but comes with a premium cost and potential exclusions. Consider your financial situation, risk tolerance, and the value of your rental property before deciding. We recommend consulting with an insurance specialist in our team for personalised advice.

Do I need to have Rent Guarantee?

You’re not legally obliged to have rent guarantee insurance. However, if you have an outstanding mortgage on your rental property, your mortgage provider may specify that rent guarantee cover will be required for your property within the mortgage terms and conditions. And when you take out a policy via an insurance broker such as PML, you’re also getting specialist insight and expertise in addition to a policy.

Find out what to do when your tenants won’t pay rent.

How does Rent Guarantee Insurance work?

Rent guarantee insurance is usually an optional add-on to landlord insurance, protecting your rent payments and reducing stress if your tenants fail or refuse to pay their rent. Rent guarantee insurance may cover payments until your tenant is able to resume payments or until an eviction or repossession notice or plan is served.

Find out the difference between rent guarantee and guaranteed rent.

Do you need separate Rent Guarantee Insurance to landlord insurance?

Rent guarantee insurance is usually in addition to landlord insurance and is highly recommended as your landlord cover alone may not cover non-payment of rent, lost rental income, or the expenses associated with court actions and evictions resulting from this.

I’ve already got a landlord insurance policy; do I need to wait until my renewal date to add Rent Guarantee?

Yes, if you already have a landlord insurance policy, you’ll need to wait until your next renewal date to add rent guarantee insurance cover.

If your renewal date is coming up shortly, give us a call and we’d be happy to give you a quote on your landlord insurance, including rent guarantee cover.

When can I claim my Rent Guarantee cover?

You can start claiming rent guarantee cover when you begin legal proceedings to evict your tenant. From here, your legal expenses will be covered up to the value of £50,000. The insurer will also pay rent owed while we’re dealing with your claim for repossession if your tenant refuses to leave your property. After the tenant has left, the insurer will pay 75 per cent of the rent that would have been payable for a further two months.

Got a dispute with a tenant? Read more about how you can resolve it.

Are there any restrictions on Rent Guarantee cover?

The following restrictions to rent guarantee insurance cover will apply:

Your rented property must be located in Great Britain or Northern Ireland
Landlords’ Legal Solutions is not available for HMOs, social housing, or leasing commercial premises
Claims must be reported to us during the period of insurance
Accommodation costs are limited to £175 per day and up to £5,250 in total
Storage costs are limited to £50 per week and £300 in total
We’ll choose your lawyer from our panel unless there is a conflict of interest or the point has been reached at which proceedings need to be issued

This policy won’t cover claims that occur during the first 90 days of the first period of insurance where the tenancy agreement started before the start of this policy (except where you had equivalent cover in force immediately prior to the start of this policy).

Do I have to pay any excess?

There is an excess on rent guarantee insurance which is the value of one month’s rent.

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Protect My Let is a trading name of Howden UK Brokers Limited, which is authorised and regulated by the Financial Conduct Authority No. 307663. Registered in England and Wales under company registration number 02831010. Registered Office: One Creechurch Place, London, EC3A 5AF. Calls may be monitored and recorded for quality assurance purposes.