6 Reasons You Should Consider Rent Guarantee Insurance

Tenant arrears and evictions are sadly not an uncommon situation for landlords. Apart from the stress associated with recovering the arrears and acting against the tenant, it can also be crippling in terms of time and money. That is why you may wish to consider rent guarantee insurance.

About Us

At Protectivity, we are here to support your business against unexpected events. For landlords, our Rent Guarantee Insurance product protects your income stream if your tenants fail to pay their rent for up to 24 months whilst still living in the property. It also typically provides the legal expenses cover necessary while you pursue those arrears and free access to a 24/7 Landlord Legal Helpline.

So, what does rent guarantee insurance cover?

The following are six areas of cover provided by our rent guarantee insurance policy. Please be aware that other providers’ similarly named policies may differ in terms of policy terms, conditions, features and benefits offered. This information relates to our rent guarantee insurance cover only.

Please also note that claim limits will apply to all areas listed and will be defined in your policy documentation.

1. Rent Guarantee Insurance

Rent guarantee insurance is not simply about making sure you get your rent paid promptly and on time.  Our policy, for example, can cover you for up to 2 years of unpaid rent prior to vacant repossession.

2. Rent Recovery

You may find yourself needing to recover rent from tenants that have fallen into arrears or refuse to pay. Where this undisputed and unpaid rent is due under the terms of the tenancy agreement between you and the tenant, our policy can cover the costs of legal proceedings to recover this rent.

3. Tenant Eviction

At some point, you may find you need to evict tenants for any number of reasons. They could be refusing to pay their rent, or you might be selling the property and the new owners want vacant possession.

Making sure this process is done correctly and legally is the best way to ensure this happens without additional costs.

In the case of a tenant refusing to leave, a policy will cover the cost of taking legal action against a tenant to evict them from your property, providing a valid eviction notice has been served. 

4. Tenant Property Damage

Similar in nature to tenant eviction, there may come a time when a tenant leaves the property damaged. This is not only time-consuming to fix and leaves you stuck with the bill, but also means you could lose out on rental income from your property during this time.

Our policy would cover your legal expenses, should you need to recuperate the cost of fixing the damage caused by the tenant to the property and/or its contents.

5. Legal Defence

Our policy includes legal expenses/legal defence costs associated with your property as standard.  The legal defence clause of the policy will cover the legal costs of a claim made against you arising from the letting of the Insured Property.  This could include eviction, accidental damage or injury.

6. Squatter Protection

Finally, we all hear stories of vacant properties being taken over by squatters. Our Rent Guarantee Insurance Squatter Protection, will help pay the costs to pursue legal action to evict any unauthorised person living at the insured property.

Of course, you should always take steps to prevent squatters gaining entry in the first place such as installing security systems and alarms to reduce the risk, but this clause can go a long way to giving you peace of mind.


As you can see, our rent guarantee insurance policy can alleviate many of the issues that landlords might encounter, covering much more than just unpaid rental income. Having insurance protects your investment and can help reduce the stress of property management. Make sure you explore all the features when choosing a policy to ensure that it is right for you.

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