Rent Guarantee & Legal Expenses Insurance

If you are a landlord who lets a residential property, then you always have the potential risk of rent default by your tenant. Even if you have had the best checks and references carried out, we can never predict a tenant falling on hard times, losing their job or becoming ill and then not being able to pay the rent. Would you be able to cover your expenditure and costs over a prolonged period of time if this happened to you?

In the current economic climate, many landlords are finding their rent default rates increasing, as many tenants struggle with unemployment, lower salaries and increased bills.

Our Rent Guarantee Insurance will cover you against your residential tenant defaulting or failing to pay the rent, taking away some of the stress associated with being a landlord.

A Rent Guarantee Insurance policy can provide real peace of mind and remember, the full cost is tax deductible against your rental income as an allowable expense.

Our Rent Guarantee Insurance provides the following cover:

  • Rent Arrears Covered up to £3000 per month
  • Legal Expenses for the recovery of your property £25,000
  • All tenant types accepted
  • No Excess Period – insurance covers from 1st month
  •  Cost of Insurance £199.00 per annum per property

We will obtain satisfactory references for each tenant or guarantor before the tenancy agreement started for rent arrears cover.

Full details of these references can be found in the policy wording.

Frequently Asked Questions

How long is my rent covered for?

Our policy has a 6 month payment timescale and it will cover you for rent arrears up to £3,000 per month until possession of your property has been gained.

What happens if my tenant’s references are not satisfactory?

For cover to be effective all references taken must be satisfactory. Therefore, if the tenant’s references are not satisfactory there will need to be a guarantor who’s references are satisfactory.

When can I make a claim?

We will commence your claim as soon as the first rent is 7 days overdue.


When should cover be taken out?

Cover should be taken out on or before the start or renewal of any tenancy agreement. Although we can add your current tenants to the scheme by simply re-referencing them.

Does a deposit need to be taken from the tenant?

Yes, we always take one months rent as a full security deposit which is registered with MyDeposits.

If the tenant defaults on their rent and I make a claim, do I have to wait for tenant eviction before I get paid any money?

Absolutely not, we very much appreciate that rent should be paid to you each month, especially as you may have your own financial needs to meet. Therefore, during the claim process the insurance company will pay you rent arrears on a monthly basis in line with your tenancy agreement.

How many properties can I cover on my policy?

The cover provided is specific to the property where the tenancy agreement is in force. If you wish to cover more than one property then a policy must be issued for each property separately.

How quickly can I get covered?

Cover is provided instantly, you simply advise us to wish to have cover and we will do the rest (subject to satisfactory tenant references).

What if I have more than one tenancy agreement at the property?

The policy is designed to cover one tenancy at one property, if you have multiple tenancy agreements at the property you will need a separate policy for each tenancy agreement. Therefore, if you have two separate tenants and two tenancy agreements you will need two separate policies.