What Is Rent Guarantee Insurance?
Rent guarantee insurance is a policy that pays your rental income if a tenant stops paying rent. It can also cover the legal costs of evicting a non-paying tenant through the courts.
Why Landlords Need It
- Mortgage payments don't stop, if rental income dries up, you still need to pay the mortgage
- Eviction is slow, the legal process can take months
- Legal costs add up, court fees, solicitor costs and bailiff fees can be expensive
- Void periods, even after eviction, there may be a gap before a new tenant moves in
What Does It Cover?
Typical rent guarantee insurance covers:
- Lost rental income (usually up to 18 months)
- Legal costs for tenant eviction
- Some policies include tenant referencing
Who Should Consider It?
- Landlords with buy-to-let mortgages
- Portfolio landlords with multiple properties
- Anyone who depends on rental income for their lifestyle or retirement
Beyond Rent Guarantee
Rent guarantee is just one part of a landlord's protection plan. You should also consider landlord insurance, personal protection (life insurance, income protection, critical illness) and your estate planning arrangements.
Visit our property investors page or book a consultation to discuss your landlord protection needs.
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