Rent Guarantee Insurance

Rent Guarantee Insurance, sometimes called rent protection insurance or tenant default insurance, is a policy a landlord buys to cover unpaid rent if a tenant falls into arrears. If the tenant stops paying and the landlord follows the insurer’s claims process, the policy may pay the monthly rent for a set period, for example 6–12 months and sometimes contribute towards legal costs for possession proceedings.

For renters, rent guarantee insurance does not remove legal protections. The insurer cannot evict you. The landlord must still follow housing law and, under the Renters’ Rights Act use the correct statutory grounds and procedures for possession rather than any “no-fault” route. The policy simply shifts some of the financial risk from the landlord to the insurer.

Insurers usually require proper referencing, a written tenancy agreement and prompt action if arrears arise. This can mean landlords move quickly to send arrears letters or start possession claims to stay within policy terms. Tenants should not see this as harassment, but any contact must still remain reasonable and lawful.

Rent guarantee insurance can give landlords confidence to rent to a wider range of tenants, but it does not justify bypassing affordability checks, ignoring disrepair or imposing unfair terms, all of which remain regulated under general housing and consumer law.