Rent Guarantee

What is Rent Guarantee Insurance?

Rent Guarantee insurance is becoming more popular within the industry and as a landlord it helps reduce the risk of having to find the extra monies to cover mortgage, eviction and legal expenses if your tenant has difficulty paying their rent.   Rent Guarantee can be an invaluable policy for landlords who rely on the rental income to pay the mortgage.  In order to purchase Rent Guarantee insurance, you must have a rental agreement in place and your tenants must be referenced and have no CCJ’s within the last 3 years.

To apply for Rent Guarantee insurance you must be able to agree with all of the following statements:

  1. A comprehensive reference with an accepted decision through a tenant referencing service provider can be provided for all tenants and/or guarantors. This includes proof of earnings and affordability, proof of ID and a credit check indicating no CCJs in the last three years. 
  2. Each tenant and/or guarantor is included in the completed tenancy agreements duly signed by all parties.
  3. The tenancies are agreed on an assured shorthold, short assured or an assured tenancy under the 1988 Housing Act or Housing (Scotland) Act.
  4. Each tenant is only allowed into occupation once a month’s rent and a deposit payment has been collected.
  5. A clear record of all rent due and payments received including the date of any payment received will be kept.

The cover also provides:

Rental income cover: Cover for up to £25,000 worth of rental income (maximum monthly rent if £2,500)

Legal Expenses cover: Cover for up to £100,000 legal expenses for eviction, possession of property, tax investigation and property disputes

Helpline: Access to legal advice helpline 24/7 for a total peace of mind


Can I take out a rent guarantee insurance policy if my tenants are already in arrears?
Yes, you can take out a policy, but any claim for their arrears/eviction will be excluded.
Can I claim rent if the tenant has left the property and stopped paying me rent?
No, the policy is designed to pay rent while the tenant resides at the property (but is unable to pay rent). If they leave, there will be no cover for future rent due.
Could a policy be purchased once the tenants get into difficulty?
No, It is not possible to take this policy out once a tenant has defaulted.
Can I take out a policy once the tenant is residing at the property?
Yes, If a tenant already occupies the property and you want to take out this policy midway through their tenancy, but there will be a 90-day exclusion period before a claim can be submitted.


All insurance policies have claims conditions that impose certain requirements . A failure to meet these can lead to problems obtaining a full settlement or, in some cases, not getting any payment at all. Your basic responsibilities where a claim arises are:

  • To report the incident to us or your insurer immediately
  • To take all reasonable steps to minimise the loss
  • To advise the authorities, where appropriate
  • To co-operate with us and/or your insurer in any investigation including the supply of supporting evidence
  • To act at all times in good faith