When should I take out rent guarantee insurance?

The earlier you take out rent guarantee insurance the better, because there are often limitations on when you can make claims. You can’t claim for events that occur within the first 90 days. So if the tenant fails to pay on day 30, but then you wait until day 91, the claim would still be denied.

How many properties can I cover on a rent guarantee policy?

You can only cover one property on a rent guarantee policy, so you need a policy for each property you want to cover. However, some insurers offer multi-property insurance policies.

Do I have to pay an excess if I claim?

It depends. Some insurers may charge an excess, while others won’t. Check the terms and conditions of your policy to see how much you would need to pay in the event of a successful claim.

Will I have to reference check my tenants?

Yes, most rent guarantee policies need your tenants to be reference checked before cover starts. Some also ask your tenants to be credit checked. Landlords must typically agree to obtain satisfactory references including background and identity checks on each tenant and each guarantor from a licensed referencing service before the tenancy agreement starts.

How much does rent guarantee insurance pay out?

This depends on the policy. It usually pays out up to an agreed amount per claim.

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Rent guarantee insurance

Compare rent guarantee insurance deals for landlords

Get cover that pays out if your tenants default

Rent guarantee insurance for landlords offers cover so you're not left short if your tenants don't pay their rent

*Terms and conditions apply. Enro Ltd t/a Superscript is authorised and regulated by the Financial Conduct Authority. FRN 656459.

What is rent guarantee cover?Who needs to take it out?Pros and cons of rent guarantee cover How much it will cost How to choose your policy Other important landlord insurance FAQs

What is rent guarantee insurance?

Rent guarantee insurance is a form of protection for landlords. It can include cover for properties that are:

Left unoccupied for a period of time between tenants
Uninhabitable due to renovation work, malicious damage or disasters like fire and flooding

We don't currently offer this kind of cover. But we do offer tenant default cover - also referred to as rent protection insurance - as an add-on to a landlord insurance policy. Tenant default cover differs to rent guarantee as it's designed to pay you the rent you’re owed, if you decide to evict tenants who are behind on the rent.

We've partnered with Simply Business to help find you the cover you need. Read on to find out more about tenant default cover, or get a quote to see your options for landlord policies that include tenant default cover.

Do I need rent guarantee insurance?

Non-payment of rent can happen to any landlord, no matter how careful you are when choosing who lives in your property. It can even happen if you use a lettings agent – although some agents offer this cover as an added benefit.

Tenants failing to pay their rent is often more of a risk when the economy is stretched, and money is tight. If your tenants fall on hard times, they might suddenly be unable to pay their rent.

If you’re a landlord, rent guarantee insurance is a way of protecting yourself. It helps you avoid serious financial challenges due to non-paying tenants and gives you peace of mind that you won’t default on your mortgage - be that a buy-to-let or standard mortgage.

What does rent protection insurance include?

Included

Rent arrears/rent guarantee

Repossession cover

Rent recovery costs

Eviction of tenants/squatters

Legal defense cover

Not included

Lost rent if your property is unsafe to let

Vacant periods

Claims for events that occur within the first 90 days of your policy

Unpaid rent for a commercial property

How much does rent guarantee insurance cost?

The price depends on the specific policy you choose, but it's worth noting the cost of rent guarantee insurance is tax-deductible against your rental income.

Superscript's rent guarantee insurance is charged at a flat rate of £9.95, per property, per month, regardless of property type, tenant type and monthly rent.

Remember to check whether you’ll need to pay an excess if you make a successful claim.

Legal cover and rent guarantee insurance costs from^[1]

£9.95 monthly

How do I choose the right rent guarantee insurance?

When it comes to finding the best rent protection insurance for you, there are a few things to look for:

The excess

--A higher excess normally means a lower premium. But you'll have to pay more yourself if you do make a claim.--

Any exclusions

--Make sure the policy you choose covers your circumstances - if not you might not get a payout.--

How much you can claim

--Make sure the maximum payout will be enough to cover your needs.--

Whether it covers your type of tenants

--Some types of tenant are excluded from some policies, for example students and houses in multiple occupation (HMOs) are frequently not covered.--

The price

--Insurance is a valuable tool, but make sure you're not paying over the odds for protection.--

What other insurance do landlords need?

Buildings insurance

If you have a mortgage, you’ll need buildings insurance. This covers the cost of rebuilding your home if it’s damaged, and may also pay for temporary accommodation while repairs are carried out.

Contents insurance

Contents insurance covers the cost of replacing furniture, appliances, carpets and more should they be stolen or damaged.

See what's covered by contents insurance

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About the author

Joe Phelan

Joe joined the money.co.uk team in 2024, where he helps small business owners navigate the often confusing world of business finance. His role is to cut through the jargon and create clear, actionable content that empowers entrepreneurs to make confident financial decisions.