What is Rent Guarantee insurance?

Landlord's Rent Guarantee insurance, often referred to as rent protection insurance is a form of cover that acts as a safeguard should your tenants be unable to pay their rent.  It helps to ensure that you will still receive your rental income should the unexpected occur.

HomeLet's Rent Guarantee Insurance covers missed rental payments and includes cover for Legal Expenses.  If you're a landlord who depends on the monthly rental income to pay the mortgage on your buy-to-let property, or you rely on these payments from tenants for other reasons, this type of insurance can be useful.  Our recent Landlord Survey* showed that non-payment of rent was an issue for 67% of landlords who had experienced problems with a tenancy.

What does HomeLet's Rent Guarantee Insurance cover?

Should your tenant default on their rent payments and you need to make a claim, you'll find that HomeLet's Rent Guarantee Insurance has a range of benefits including:

  • Missed rental payments 
    You could receive cover for rental payments for up to 6 months (there is an excess on this policy of up to one month's rent)
  • Continued cover when vacant possession is obtained
    50% of the rent is covered for up to three months after vacant possession is obtained, whilst you're trying to find new tenants
  • Expert support when you need it most 
    If an insured event occurs, our in-house HomeLet Legal and Claims team will deal with the legal process for you 
  • Cover for Legal & Claim costs included as standard  
    Legal expenses covered within the maximum limit of indemnity of £50,000  

Do I need Rent Guarantee insurance?

As a landlord, you may rely upon your rental income to cover mortgage payments.  Your Rent Guarantee Insurance Policy can give you some peace of mind once you have let your property to a tenant. Whilst it is optional cover and isn't a legal requirement, it has been designed to provide some added protection for landlords who are renting out their properties to tenants.

How much does Landlord Rent Guarantee Insurance cost?

The cost of your premium will depend on the monthly rental amount for the property. To find out how much your policy will cost, please get in touch for your personalised quote.

How to get insured

Whether you're planning your insurance for your first buy-to-let investment or you're an established landlord who is thinking of getting some additional cover after dealing with tenants who have missed payments, our team is on hand to get you set up.

You can arrange your Rent Guarantee cover with HomeLet over the phone.

Why should I take out Rent Guarantee Insurance with HomeLet?

Even the most conscientious tenants can have their circumstances suddenly change, resulting in them no longer being able to pay the rent.  Unless you don't need the rent, it may be worth investing in rent guarantee insurance which can cover you in the event your tenant can't or won't pay the rent.

Whether you feel you need cover may depend on if you’re a landlord who is likely to be personally impacted by these missed payments, for example, you still have mortgage payments to make in addition to your own household outgoings.

In fact, our recent Landlord Survey revealed that missed rent payments are a problem for a number of landlords. We found that over a quarter of landlords (28%) are tackling non-payment of rent, while 20% are dealing with late rent. With such high numbers affected by money not arriving in time, it’s important to consider if you need to have experts ready to resolve problems quickly if things go wrong.

Whether you’re relying on the rent to cover the cost of the mortgage on your buy-to-let property or you’re letting to new tenants, Rent Guarantee Insurance from HomeLet ensures you can still receive your rental income should the unexpected occur. It covers missed rental payments, as well as legal expenses.

HomeLet’s average time from issue of claim to eviction is 136 days, compared to a National average of 322 days.  Since 2015 HomeLet have paid out £11.4 Million across all rent protection and eviction claims.

Do you need tenant references to take out Landlord Rent Guarantee Insurance?

Any tenants in the property must be satisfactorily referenced in accordance with our conditions in order for you to be able to take out Rent Guarantee Insurance with us. This means that tenants need to be referenced on a HomeLet Enhance reference check. HomeLet’s Enhance tenant reference includes employment and financial checks, as well as a credit check and a reference from a previous landlord, if applicable.

Referencing is required for each tenant named on the Assured Shorthold Tenancy Agreement and for the full rent outlined in the agreement

Referencing, things to note

If you’re considering our Rent Guarantee insurance it is important to put it in place before handing over the keys as cover purchased after tenants have moved in incurs a 90-day no claims period.

If you have any queries or have referenced your tenants by any other means, please call our Landlord Insurance team on 0800 038 4574 – we're always happy to help (if you're calling from outside the UK you can call +44 152 2838 514).

What isn't covered?

It’s important you’re aware that there are some things which our Rent Guarantee policy cannot cover. These are:

  • First month’s rent arrears
    You won’t receive a monthly benefit for the first missed rental payment  
  • Rent once the property has been re-let 
    When you’ve rented your property out again after the tenant who has defaulted on payments has left, we will no longer cover the lost rental payments
  • During periods when your property is advertised for sale
    If you put your property up for sale or it’s the subject of a contract for sale, you won’t be covered by Rent Guarantee

Make sure you check your policy thoroughly so that you’re comfortable this type of insurance meets your individual needs.

How to make a claim 

If you need to make a claim on your policy, call the HomeLet Rent Guarantee claim line on 0330 333 7067. Our expert claims handlers are here to guide you through the process.

The lines are open Monday to Friday, 9am to 5pm. 

What do our customers say?

feefo platinum service 2020 Rent Guarantee

We have been awarded as a Feefo Platinum merchant for 2020, this means our rating has been above 4.5 out of 5 throughout the entirety of 2018 and 2019. Our Landlord Insurance, available across the UK has been given a customer experience rating of 4.7 out of 5 by 4,406 of our Landlord customers, through independent feedback from Feefo.

To read more renters insurance reviews, you can see feedback from our customers on our Feefo page.