Summary
What is Rent Guarantee Insurance?
Rent Guarantee Insurance - often referred to as Rent Protection Insurance, Tenant Default Insurance, or simply Rent Guarantee - is a form of insurance cover which helps to protect landlords from unpaid rents and resolve tenancy disputes requiring possession.
With the upcoming Renters' Rights Bill set to have a huge effect on landlords, many are turning to Rent Guarantee insurance for the added protection they feel they will soon need.
Here's a quick overview of how our Rent Guarantee supports you:
Financial protection if tenants can't pay
Rent is paid in full for 12 months or up to vacant possession, whichever is first (up to £50,000 in aggregate with professional costs). Rents over £3,500 per month require a chat with our team.
Continued cover when vacant possession is obtained
We provide cover for 75% of the rent for up to three months after vacant possession. This cover ceases once the property is re-let.
Expert support when you need it most
In England and Wales, our experienced in-house Claims team and on-site legal support manage the eviction of tenants. Across Scotland and Northern Ireland, we use a panel of solicitors.
Total rent covered
Rent Guarantee covers the total monthly rent, no matter how many tenants are on the Tenancy Agreement – upper limits do apply.
Cover for professional & claim costs included as standard
Up to £50,000 (in aggregate with rent payments) to cover eviction costs if the tenant is in breach of their tenancy agreement.
Benefits of Rent Guarantee Insurance
Rent Guarantee acts as a safeguard should your tenants fail to pay their rent. If they cannot pay, Landlord Rent Guarantee Insurance covers your rental income, mitigating arrears and providing professional services to help provide a solution.
If your tenants stop paying their rent, here's what our Rent Guarantee Insurance for landlords will cover*:
- Missed rental payments for up to 12 months
- Continued cover when vacant possession is obtained for up to three months at 75%
- Up to £50,000 cover for professional services & claim costs
- Expert support when you need it most
*This is an overview of the cover we provide. Full terms and conditions can be found in the policy wording and policy summary.
We can also continue to assist if the tenant defends the action taken, to help find the best solution.
12 month policy term - payment continues beyond the end of our policy term.
Do I need Rent Guarantee Insurance?
Rent Guarantee Insurance isn’t legally required, but with the upcoming changes set to be introduced by the Renters' Rights Bill, it’s becoming an increasingly valuable safety net for landlords.
Letting a property comes with a range of ongoing costs. The HomeLet Market Survey found that over 50% of landlords rely upon rental income to cover their mortgage payments. You may also be liable for additional costs that you cover with the monthly rent. Expenses may include, safety tests, alarms, income tax, letting agent management fees and utilities bills.
As the Renters' Rights Bill strengthens tenant rights and adjusts eviction processes, landlords may face longer periods of unpaid rent or delays in regaining possession of their properties.
If tenants are unable to pay their rent, refuse to leave after being served an eviction notice, or withhold rent due to a dispute, you can submit a claim for the lost rental payments to help ensure that you have the funds that you need to hand. For full terms and conditions, please read the Policy Wording to make sure this product is suitable.
How do I get Rent Guarantee Insurance?
Whether you’re planning your insurance for your first buy-to-let investment or you’re an established landlord thinking of getting some additional cover after dealing with tenants who have missed payments, HomeLet's Rent Guarantee is suitable for all landlords. Please note that this policy cannot cover events that have already happened.
Click here to get a quote online and check out in minutes.
Alternatively you can give us a call, and one of our friendly team members will be happy to answer any questions you might have about our cover. They can also help you to arrange your Rent Guarantee Insurance over the phone.
We're open from 08:30 - 17:30 Monday to Friday and 09:30 - 13:00 Saturday. Whatever you need, we're happy to help.
Purchase your cover online
What do I need before buying Rent Guarantee Insurance?
Before renting out a property, there are many legal requirements you must meet.
To take out Rent Guarantee insurance from HomeLet, you must also have satisfactory references for all tenants in the property. (These do not have to be referenced by HomeLet.)
To learn more about the terms and conditions of our Landlord Rent Guarantee Insurance, view our Policy Summary document and Policy Wording document.
How much does Rent Guarantee Insurance cost?
You can cover your rental income and professional costs for as little as 46p a day* with HomeLet, meaning that if your tenants don't pay, you'll still receive your rental income.
Our Rent Guarantee prices are dependant on the rental amount - click here to get a free online quote for your property.
*Dependant on rental amount - example figure based on a rental amount of £600 per month.
What our customers are saying
FAQs
- Do I need separate Rent Guarantee Insurance and Landlord Insurance?
Legally, you are not required to take out a Rent Protection Insurance policy if you’re letting a property.
If you do have an existing Landlord Insurance policy, it may include rent guarantee cover as standard or as an add-on, so be sure to check your specific policy documentation to make sure.
Here at HomeLet, we can provide both under one policy if you speak to our team over the phone. Even if you are already covered, still contact us, as we may be able to beat your current price.
- Can a tenant take out Rent Guarantee Insurance?No, tenants cannot take out Rent Guarantee Insurance with HomeLet to cover their own ability to pay rent. This policy is only available to landlords.
- Do my tenants need references to be covered by Rent Protection Insurance?HomeLet’s policies require you to have satisfactory references for all tenants to identify any risks of non-payment for you to be covered by our insurance.
- How does Rent Guarantee Insurance work?If a tenant defaults on rent, 100% of the rent is paid for up to 12 months, professional costs to obtain vacant possession are covered (up to £50,000 aggregated total) and our in-house Claims team offer expert support when landlords need it most.
- How many tenants can my Rent Guarantee Insurance cover?
There isn't a limit to the amount of tenants which can be covered as our Rent Guarantee policies cover the rental amount. For full terms and conditions around limitations, please view our Policy Summary document and Policy Wording document.
- Is Rent Guarantee Insurance worth it?
Rent Guarantee can be a vital safeguard, especially with the upcoming Renters' Rights Bill set to reshape the private rental sector.
For a small percentage of the rent, you can cover missed payments and legal costs, and get legal support from our expert, in-house team if you need to submit a claim.
- What isn't covered by Rent Guarantee?
While we aim to cover as many events as possible, there are restrictions to HomeLet’s Landlords Rent Guarantee Insurance policies:
- We only cover homes located in Great Britain and Northern Ireland.
- If the tenant is already living in the property when you purchase cover, and then fails to pay within the first 60 days of the policy term, you cannot make a claim.
- You cannot claim for periods during which the property is unavailable to be re-let once the property has been made vacant.
- Amounts exceeding the sum equivalent of 12 times the monthly rent for Rent Guarantee payments.
Other useful cover for landlords
As well as Rent Guarantee Insurance, HomeLet offers a range of other insurance products specifically designed to help you protect your investments. As a landlord, have you considered any of the following:
- Landlord Insurance - Also known as Buy-to-Let Insurance, it covers the risks of renting a property.
- Landlord Buildings Insurance - Provides cover against damage to the structure of a rental property.
- Landlord Contents Insurance - Covers the cost of repairing or replacing furniture and appliances.
- Landlord Portfolio Insurance - Covers multiple rented properties under one policy and renewal date.
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