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Rent Guarantee Insurance

Loss of rent cover for landlords

If one of your tenants falls into serious arrears that they cannot deal with or flees, leaving you with a large unpaid rent debt, your options may be limited. Typically, you may need to choose between:

  • taking legal action (including eviction) to try and recover the debt from in-situ tenants or trying to trace and take legal action against tenants who have fled;
  • doing nothing and writing off the debt as a “lost cause”.

While it’s perhaps fair to assume that most landlords might not view the second option with any relish, the first brings with it potential delays and legal costs – and those costs cannot always be recovered even in the event your action is successful.

Fortunately, it may be possible to get assistance in these sorts of situations if you have a rent guarantee insurance policy.

Why buy rent guarantee insurance?

Rent guarantee insurance gives you the peace of mind that should your tenant fall in to rent arrears or absconds owing you outstanding monies, then this insurance will step in and compensate you.

Not only that, but landlords legal protection insurance is included as standard (you are unable to purchase rent guarantee insurance without legal protection cover from the same insurer, hence they are packaged together) with our rent guarantee insurance too, so you can enjoy all-round peace of mind that your legal costs are covered (up to £50,000 per incident), at what we believe is a very competitive price.

Benefits include:

  • cover for loss of rent up to £1,500 per month for a maximum of 6 months (or until vacant possession has been attained);
  • landlords legal protection included as standard;
  • loss of salary or wages incurred for the time off work to attend any court or tribunal hearing as a witness or defendant (up to £100 per person per day, maximum £1,000 per claim);
  • legal costs incurred to use your legal rights to evict anyone, other than tenants who have your permission to be in the property;
  • a 24-Hour Helpline, so you know we are always at the end of the phone if you need help;
  • cover for all tenant types;
  • cover for both long-term leaseholders as well as those on a minimum 6-month agreement.

Important: To enjoy the benefits of a Rent Guarantee Policy, you must obtain one Credit Agency Reference (from a reputable Credit Reference Agency) and at least one satisfactory written character reference for each tenant. An excess of one month’s unpaid rent applies to each claim made.

Act now to get your rent guaranteed! To find out more about rent guarantee insurance, or to get a quote, please call us on 01702 606301.

Rent guarantee insurance FAQS

At Cover4LetProperty, our professional and friendly team are always on hand to answer any questions or queries you may have relating to your insurance policy or its terms and conditions. So please feel free to ‘phone us during office hours on 01702 606301. We’d be very pleased to help!

In the meantime, here are some of our frequently asked questions relating to this landlords rent guarantee insurance.

What does rent guarantee insurance cover?

Although the task of any landlord is to manage tenancies in a way that minimises the risk of rent arrears and to offer solutions to tenants in temporary difficulties, the fact remains that some may slip into irreversible arrears – or abscond altogether.

Our insurance policies not only provide compensation for your loss of rental income but also generous provision for legal protection insurance – up to a maximum of £50,000 in legal costs associated with efforts to recover rental arrears from tenants who have yet to be evicted or those who have already absconded.

Does landlord insurance cover unpaid rent?

Your landlord insurance does not cover unpaid rent. Rental guarantee insurance is a standalone product that you can buy alongside your landlord insurance. So, if a tenant slips into arrears of leaves the property, your first line of defence is likely to be rent guarantee insurance.

Rent guarantee insurance covers a number of the risks you might expect it to do from its title, namely:

  • compensation for lost rental income of up to £1,500 a month, for a maximum of six months, or until you have regained vacant possession of the let property;
  • compensation for your loss of wages or salary when you need to take time off work to appear in court or at a tribunal as a plaintiff or witness – up to £100 per person per day, up to an upper limit of £1,000 for any single claim;
  • the legal costs involved in the pursuit of your legal entitlement to evict a tenant or tenants – other than one who has your permission to occupy the property;
  • inclusion – as standard – of full landlord legal protection, providing cover for legal fees and expenses of up to £50,000 for any one case; and
  • a 24-hour helpline – to ensure that advice and guidance are always on hand.

Are there any insurance conditions I need to be aware of?

Virtually all insurance, of whatever type, requires you to take certain reasonable steps to protect both your and your insurance company’s interests. This basic principle applies to landlord insurance and rent guarantee cover options.

In this instance, to qualify for this cover, you will be required to:

  • obtain a credit agency reference sourced from a reputable and recognised credit reference agency;
  • have at least one satisfactory and relevant written character reference for each tenant. Typically, character references from close family members would not be considered appropriate.

These steps are essential if you are to reduce the risks of letting to potentially problem tenants. While these checks can never be an absolutely guaranteed method of avoiding such troubles, they can be extremely useful as a filter.

Please also note that an excess (the sum you will be expected to contribute towards the cost of any future successful claim) of one month’s unpaid rent applies to each claim made.

Why choose Cover4LetProperty for landlord rent guarantee insurance?

At Cover4LetProperty, we are a long-standing insurance company registered in England and Wales and authorised and regulated by the Financial Conduct Authority. We strive to offer only first-class products backed up with first-class customer service. Our website is regularly updated with the latest industry news as well as useful tips and guides, which we hope you as a customer enjoy.

You can get an insurance quote online anytime. Or, if you prefer to speak to us, one our professional, dedicated team will be pleased to help you. Please call us on 01702 606 301!