Rent guarantee insurance covers your monthly rental income if your tenants stop paying.  You can usually make a claim on your policy once your tenants have fallen one month behind with their rent. Your insurance will then continue to pay out for a fixed period, normally between 6 – 12 months, or until the tenant is evicted.  Some policies continue to provide a reduced level of cover for up to 2 months after you regain possession of the property to allow time for you to source a new tenant.

Protect your rental income with Rent guarantee insurance, sometimes known as rent protection insurance, can offer a financial lifeline to many landlords. … You can usually buy cover for six or 12 months, depending on the length of your tenancy agreement – and the full cost is tax-deductible against your rental income.  It is usually sold in conjunction with legal expenses cover which will provide cover to evict the tenant.

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 to pay the mortgage and is usually so in conjunction with legal expenses cover which will arrange for the eviction of the tenant.

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 cover by loss of rent cover included in the main policy.  However, if you tenant simply stops paying their rent but remains in your property you would require additional legal expense 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 same referencing process.

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

Yes, dependent on what part of the policy you are claiming on there are excesses as follows:

• £250 legal expenses
• £0 excess for eviction if due to unpaid rent

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 have no other means of covering costs of the property.

You can cover up to 25 tenants for a student let/HMO (House of Multiple Occupancy) . You will need a separate policy for each tenancy agreement.

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.

You can take out a policy, but any claim for their arrears/eviction will be excluded.