Service comes first at Coversure, and as the following feefo testimonials show, we’re the team you can trust with your business
Average Customer Rating:
Landlord Rent Guarantee
Insurance
Independent service from your local insurance specialists
Need a rent guarantee insurance quote? Let the independent specialists at your local Coversure office compare their markets to find you quality home insurance protection. Your local Coversure office can tailor protection to your property's needs, so start your quote today.
-
We're here to help
Contact us to get your Landlord Rent Guarantee insurance quote
What is Landlord Rent Guarantee Insurance?
Landlord rent guarantee insurance – also known as tenant default insurance – is a popular add-on to landlord insurance. It protects landlords financially should their tenants fail to pay their rent. With the UK rental market continuing to grow, according to the Office for National Statistics (ONS), and with the average eviction now taking 42 to weeks**, the last thing you want is a rental property that’s not bringing in any rent.
Who Needs Rent Guarantee Insurance?
If you’re a landlord, it’s worth adding tenant default insurance to your landlord policy. Even the best tenants with the best references and faultless payment histories can get into financial difficulty and leave you out of pocket.
What Does Tenant Default Insurance Cover?
Rent guarantee insurance offers a package of protection that allows you to cover multiple risks on a single policy*. In addition to covering loss of rent for up to 12 months, rent guarantee insurance can also give you:
- Legal cover – to cover any disputes relating to the recovery of rent, repossession, or an eviction process of up to £100,000
- £2,500 in rental income per month
- 12 months’ rental cover
- Up to 3 months rental cover following eviction at 75% of monthly rent
- Landlord legal expenses helpline 24/7
- Protection for a wide range of tenant types – including private renters, asylum seekers, and housing benefit claimants
What doesn't Landlord Rent Guarantee Insurance cover?
Your local Coversure will create a policy that suits your specific needs, but there are some standard exclusions to this form of cover, including:
Types Of Tenants
While Coversure’ can offer landlord insurance quotes for all tenant types, some insurers may not offer rent guarantee protection for all tenant types. High-risk tenants such as the following may be excluded:
- The unemployed
- Students
- Those without references
You Sell The Property
If you put the property on the market, you’ll likely find that your cover will stop making payments to you
Defaulting Tenant Has Left
If you evict the defaulting tenant or they leave willingly, your payments will generally end irrespective of whether you have a new tenant in place
Commercial Property
If the property is used for business, you’ll need to arrange another type of cover as part of your commercial property insurance
Defined Deferral Periods
Most insurers won’t cover the first month of lost rent, and some policies may have extended deferral periods, so make sure you check the policy wording with your broker
Contract Disputes
Your legal cover won’t typically help with any legal costs if you and your tenant enter a dispute over the terms of your rental agreement
How Much Does Rent Guarantee Insurance Cost?
The cost of rent guarantee insurance depends on several things, such as:
- The type of property you’re renting
- Its size
- Its location
- The number of tenants you have
- The type of tenants you have
- How much rental income do you need to cover
The best way to find out how much protection you need is to contact your local Coversure. They’ll be able to advise you as to what you need and create a package of Landlord Rent Guarantee cover for you.
Landlord Rent Guarantee Insurance FAQ
Landlord rent guarantee insurance can be a complex area of cover, so to help you get the protection you need, here are the answers to some frequently asked questions:
Why do I need landlord rent guarantee insurance if I have landlord cover?
Landlord insurance usually only covers loss of rent following a claim under the primary policy. However, if your tenants stop paying their rent, then your landlord’s insurance will not cover this
Will I be covered for legal disputes with my tenant?
If it’s a contract dispute with tenants, then no
Does rent guarantee insurance cover me if I change tenants?
Yes, because the policy is on the property
Do I need a tenant reference for rent guarantee insurance?
It depends. Some insurers will insist upon it as part of offering your cover. Generally speaking, it’s best to have tenants with references
What is the typical excess on a tenant default policy?
Your level of excess – the amount you pay in the event of a claim – is largely down to you. A higher excess can help reduce the cost of your policy
How can I get a landlord rent guarantee insurance quote?
You can start a quote by clicking here or contact your local Coversure office. They’ll assess your needs and give you the benefit of their independent advice before searching their markets to build you a package of protection that suits your needs and budget
How many tenants can I have on a single policy?
Many policies will stipulate a maximum of four tenants, but if you have more, please get in touch with your local Coversure, and they may be able to help you
When can I make a claim?
In general, the tenant must be in arrears by one calendar month for you to be able to initiate a claim
How many properties can I cover on a policy?
You will need one policy per property
Need a Landlord Rent Guarantee Insurance quote?
If you’d like a Landlord Rent Guarantee Insurance quote from Coversure, please contact your local Coversure office or start your quote here. Our independent brokers will search their markets to find you the right policy at the right price to keep your business protected.
* Policy information is correct at the time of writing. Policy details, limits, and exclusions are subject to insurer’ changes. When taking out a policy, your local Coversure office will be able to advise you of the specifics of your cover.
