Rent Guarantee Insurance: Complete Guide for UK Landlords
Rent Guarantee Insurance helps protect landlords against unpaid rent and the legal costs involved in evicting a tenant who has breached their tenancy agreement. It is designed for landlords who want income protection without giving up control of their property.
Underwritten by Intact Insurance UK Limited and administered by Temple Legal Protection, both authorised and regulated by the Financial Conduct Authority (FCA). Eligible claims may be covered by the Financial Services Compensation Scheme (FSCS).
What Is Rent Guarantee Insurance?
Rent Guarantee Insurance is a specialist landlord insurance policy that pays rent when a tenant falls into arrears and covers associated legal expenses, provided eviction proceedings are underway and the claim is accepted.
Unlike guaranteed rent schemes, this insurance allows landlords to retain
control over tenant selection, rent levels, and property management.
How Rent Guarantee Insurance Works
- Tenant falls into rent arrears.
- Landlord notifies the insurer within the required timeframe.
- Eviction proceedings are initiated and accepted.
- Rent payments are made 30 days in arrears.
- Legal costs for eviction and rent recovery are covered.
Claims must be notified within 45 days of rent becoming due. Rent payments apply only while eviction is in progress and subject to policy conditions.
What Does Rent Guarantee Insurance Cover?
- Unpaid rent up to £2,500 per month
- Maximum of £25,000 per policy period
- Up to 12 months’ rent while eviction is ongoing
- Legal expenses for eviction and repossession
- Rent recovery legal costs
What Is Not Covered?
- Rent arrears before the policy start date
- Claims within the first 90 days of the first policy period
- Claims not reported within the required time limits
- Reduced rent voluntarily accepted by the landlord
- Cases where eviction is not being pursued
Tenant referencing, deposit protection, and buildings insurance must be in place and compliant with legislation. Failure to meet policy conditions may invalidate a claim.
Rent Guarantee Insurance vs Guaranteed Rent Schemes
| Feature | Rent Guarantee Insurance | Guaranteed Rent |
|---|---|---|
| Landlord control | Yes | No |
| Market rent achieved | Yes | Often reduced |
| Legal costs covered | Yes | Usually no |
Is Rent Guarantee Insurance Worth It?
For landlords who rely on rental income to meet mortgage or living costs, Rent Guarantee Insurance can significantly reduce financial risk. The cost of a single eviction often exceeds the annual premium.
Frequently Asked Questions
Is eviction required?
Yes. Rent payments apply only once eviction proceedings are underway.
How long is rent paid for?
Up to 12 months, subject to policy limits.
Is legal cover included?
Yes, including eviction and rent recovery costs.
Who underwrites the policy?
Intact Insurance UK Limited.
This information does not form part of a contract. Full terms, conditions, and exclusions are detailed in the policy wording. Always read the Insurance Product Information Document before purchase.