Rent guarantee insurance and legal expense insurance – does it really pay?

rent guarantee insurance and legal expense insurance

For any landlord wanting a peace of mind that the rent they are due will definitely be paid and any legal work associated with that payment and eviction process be hassle free – rent guarantee insurance and legal expense insurance are for you.

Like most insurance products, when it comes rent guarantee insurance and legal expense insurance, it is important that one truly understands what they are for and how they will benefit you as a landlord. So, I thought the best way to explain and answer the above question is to give you some short real life examples of how we have succeeded in a couple of our claims to date.

What are rent guarantee insurance and legal expense insurance?

As a landlord, rent guarantee insurance covers your rent payments. If your tenant – for whatever reason – fails to pay their rent, your policy will enable you to claim it back. If you are a landlord that heavily depends on your rental income – having rent guarantee insurance is a great way to ensure you’re never out of pocket.

If you have to take your tenant to court, legal expense insurance will cover the cost of your legal proceedings. Without this insurance in place, taking possession of your property or settling an ongoing dispute with a tenant could cost you thousands in legal fees.

How do we offer rent guarantee insurance and legal expense insurance?

At, we offer Essential and Complete Rent Protection.

Guaranteed Rent – For £149 up front and £59 a month (inc VAT), our Guaranteed Rent package will supply you with:

  • Advertising, finding a tenant and referencing
  • Agreements, deposit security and holding fee services
  • Rent collection
  • Legal advice, expenses and eviction support

Rent on Time – For £149 up front and £89 a month (inc VAT), our Rent on Time will provide you with all of the above, with the additional benefits of:

  • Home emergency cover
  • Rent protection with rent paid on time every month
  • Deposit dispute resolution
  • Free tenancy renewal

The main difference between our packages is that whilst rent guarantee insurance is included in both, Rent on Time ensures your rent is paid on time every month – regardless of whether the tenant pays or not. Guaranteed Rent will cover any rent owed to you, but you may have to wait 8 weeks for the claim to complete.

How rent guarantee insurance and legal expense insurance helped our landlords

One of our landlords, Mr Y, had purchased our Guaranteed Rent plan. His tenants moved in after a short advertising campaign, the completion of references and the signing of the tenancy agreement. All went well for the first four months until a rent payment was missed. We contacted the tenants and discovered they were unable to pay their rent because one tenant had lost their source of income.

After a second payment was missed and after considerable correspondence between and the tenants, a Section 8 notice was served. Following this, our landlord team submitted a rent guarantee insurance claim on the tenant’s behalf.

Three months later, one of the tenants moved out. Insurance payments were being made to cover the rent and the legal team had applied to the courts for an eviction date. At the same time, the local council were helping the remaining tenant with catching up on rent payments while getting back onto her feet and looking for alternative accommodation.

Days before eviction date, the landlord was presented with the news that the tenant had found alternative accommodation. It was agreed that court action would be suspended on the condition all rent payments were paid up in full.

The tenant and council agreed and fulfilled their obligation and the original payments made were returned back to the insurers.

In short, the landlord’s rent guarantee insurance and legal expense insurance covered £2,900 of missed rent and the costs of full legal assistance.

The entire process was managed and communicated through and the landlord continued with our Guaranteed Rent plan to find their next tenant.

Another successful case

Another scenario with completely different circumstances had an equally beneficial ending for the landlord.

Mrs X’s tenants moved into a property at the beginning of the year and stopped paying rent after three months. Unfortunately, the tenants had a pre-conceived plan to not ever pay the rent at all. Notices were served and a court hearing scheduled for eviction, but the tenants left the property in the middle of the night with over £8,000 outstanding rent.

Being a property in London with a longer court hearing schedule, it took a further five months after serving notice to finally have the tenants evicted.

In the interim, a rent guarantee insurance claim was submitted. Our insurance partners at Alan Boswell Group paid Mrs X four months of rent and returned the full deposit to cover the fifth.

Although this was as very frustrating and stressful time, Mrs X’s Guaranteed Rent plan meant they came out of this dispute unscathed. The landlord’s rent was fully paid, all legal costs were covered and our team provided ongoing reassurance and support throughout.

Do you need insurance?

Want to cover your rent and legal expenses? Take a look at our Guaranteed Rent and Rent on Time plans today.

Want to insurance your property for damages? Get a Building and Contents Insurance quote for your rental today with our partners at Alan Boswell. If you already have cover, they’ll aim to beat your current premium.

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