Rent guarantee insurance

£100,000 of missed rent

What does this include?

• up to £100,000 in rental arrears, with no limit on your monthly rental amounts
• tenant still in the property? We can pay your claim while they’re there, if necessary

It doesn’t matter what monthly rental amount you’ve agreed with your tenant. If they miss it, it could be covered, up to a total value of £100,000 across your policy’s term.

When would I need this?

• your tenant has been let go from work and defaults on (fails to pay) their rent. You contact your insurer and try to set up a payment plan before going ahead with an eviction (your insurer helps you out with this).
• however, your tenant misses another two payments so you serve an eviction notice. Your tenant default insurance steps in to cover the £17,500 you’re owed in rent.

12 months of rent

What’s covered?

• up to £100,000 in rental arrears, across a 12 month period

When would I need to make a claim?

• your tenants fall behind on their rent and haven’t paid for four months. You contacted your insurer from the first missed payment and tried to negotiate with your tenant, but they’ve stopped answering your calls and emails
• you decide to serve an eviction notice, and contact your insurer to claim back the four months of rental money you’re owed, as part of your rent guarantee insurance/tenant default cover

Cover during repairs

What’s typically covered?

• 50% of your monthly rental amount for three months, if your tenant causes intentional damage and the property is assessed as being uninhabitable
• soiled carpets, walls, and fittings
• severe damp and access issues, following malicious damage

When would I need to make a claim?

• you start an eviction process due to missed rental payments, which results in ongoing conflict with your tenants. They allow their dog to soil the property’s carpets and walls, causing severe damage to the front door and windows
• you’ll need a couple of months to sort the property out for re-letting, and claim for 50% of two months of rent, while this is going on

Legal advice helpline

What does this include?

• access to a panel of solicitors, ready to offer legal advice on a range of services, including contractual disputes

When would I need this?

• your tenant has been made redundant and decides to let you know. They haven’t missed a rental payment yet, but you want to get prepared with some precautionary advice

No excess

How does this work?

There’s no excess on our tenant default insurance – we don’t ask you to cover any part of the rental arrears before we step in. There’s also no need to wait for a certain number of missed payments before contacting us, you can claim from the first time it happens.

We’ll consider all tenant types

How does this work?

This type of rent guarantee depends on your tenants and their ability to keep up with their rent. When making a decision on your claim, we’ll consider all tenants who pass specific credit checks, but others may be excluded.

Who might not be covered?

Typically, students, unemployed tenants or those on state benefits are more likely to fail a credit check, as they’re more at risk of defaulting on their rent.

We’ll work on a case-by-case basis though, and some higher-risk tenants who’ve paid rent upfront or who have good references from a previous landlord may be covered.