Rent guarantee insurance covers your monthly rental income if your tenants stop paying.  You can make a claim on your policy once your tenants have fallen two month payments behind with their rent. Subject to claim acceptance your insurance will then continue to pay out for a fixed period, or until the tenant is evicted.

Yes, as long as you meet the acceptance criteria.

Rent guarantee insurance is an optional cover that helps to protect you, as a landlord, from being at risk if your tenants have difficulty paying their rent. Rent guarantee can be an invaluable policy for landlords who rely on the rental income. The policy is sold in conjunction with legal expenses cover which will provide cover for the legal costs of regaining possession of your property.

Under normal circumstance landlord insurance usually covers Loss of Rent following a claim under the main policy.  However, if your tenants simply stop paying their rent then your landlord’s insurance will not cover this and you would need a separate legal expenses and rent guarantee insurance which would provide cover to evict the tenant and pay your rent during the process.

If your landlord’s insurance pays out in the event of a claim for loss or damage caused, for example by fire or flood, that means your tenants can no longer stay in the property then any rental income lost is usually covered by loss of rent cover included in the main policy.  However, if your tenant simply stops paying their rent but remains in your property you would require additional legal expenses and rent guarantee insurance to help you evict the tenant and pay the missing rent during the process.

Yes, but the guarantor will still have to go through the similar referencing process. The guarantor will also have to achieve a higher affordability factor.

Two forms of ID are required and one must be photographic.

Yes, the insurance is based on the property. As long as the new tenant has passed referencing and there is a tenancy agreement in place then the insurance will be valid.

There is no legal requirement for the product, although it is highly advisable if you rely on the rental income.

You can cover up to 4 tenants per policy, if you wish to cover more than 4 please contact us. 

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.

This is not possible.

You must try speaking with your tenants first  and see if you can make an arrangement to repay the arrears. If this doesn’t work and they can’t/don’t pay, the following eviction notices must be served before you can claim:

• A Section 8 notice: also known as a notice to quit or possession notice. A Section 8 notice seeks possession of your property if the tenant won’t leave
• Ultimately, if your tenant(s) can’t pay, you can issue a Section 21 notice which ends the tenancy.

For more information about how to evict tenants, click here

Give us a call today, or click here to find out more and purchase rent guarantee insurance for your properties.

For the insurance to be valid your tenant(s) must have passed referencing or have a guarantor who has passed referencing. Find out more about tenant referencing here.

If you take out the policy after the tenancy has started, there will be a 90-day exclusion period before a claim can be submitted. If a tenant is already in arrears there will be no cover under this policy.