Rent guarantee insurance covers your lost rent if your tenants do not pay you, which is essential if you rely on your rental income to pay your mortgage.

However, rent guarantee does not cover all types of tenants and you may not be able to get cover if your tenants have previously missed rental payments.

What does rent guarantee cover?

Rent guarantee insurance covers your monthly rental income and legal expenses if:

  • Your tenant does not pay rent for more than a month

  • You have to evict your tenant

It does not cover:

  • Lost rent if your property is unsafe to let, or vacant periods

  • Claims made within the first 90 days of your policy

  • Claims not reported quickly enough, e.g. within 60 days

  • Claims against tenants who have a history of defaulting on their rent

  • Claims made against asylum seekers

Is it included in landlord policies?

Rent guarantee is an optional extra with most landlord insurance policies, which means you have to pay extra if you need it.

If you do not choose to add rent guarantee to your cover, you will not be able to claim if your tenants default on their rent or you need to evict them.