If you’re a landlord who is keen to protect the rental income from your properties, have you considered rent guarantee insurance? We’re here to explain what rent guarantee insurance is and how much landlord rent guarantee insurance costs.

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What is rent guarantee insurance?

Otherwise known as rent protection insurance, rent guarantee insurance is a type of landlord insurance which ensures that landlords receive their rental income regardless of the tenant’s financial situation. If the tenant fails to pay their monthly rent, it covers the rent arrears and can expense the legal costs if legal action has to be taken against the tenant.

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Rent guarantee insurance will give you peace of mind to continue being a landlord in an ever-changing economy.

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Why do I need rent guarantee insurance?

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Financial circumstances can change for any tenant, no matter how reliable or stable their job may seem. Anything can happen in the economy and rent guarantee insurance provides a safety net for the worst-case scenarios, such as unpaid rent.

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It’s an insurance worth having to protect your property investment’s income. It’s important to think about what would you do if your tenant couldn’t pay the rent - how would you claim the money that they don’t have? How would you pay your bills if you rely on the tenant’s rent as an income? How would you cover the repairs and damage to the rental property?

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Is rent guarantee insurance worth it?

If you’re a landlord, you’ve probably considered if guaranteed rent is worth the costs. 

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Here are some benefits of rent guarantee insurance:

• Offers protection to landlords if the tenants cannot pay rent
• Includes legal expenses insurance cover, which covers the costs of any legal action that has to be taken against your tenant
• Pays for the costs of any damage and repairs to the property caused by the tenant
• No costs associated with rent arrears
• Prevents missed rent payments

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Most of all, with rent guarantee insurance, there’s peace of mind that you will always receive rental payments, no matter the circumstances!

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How much does rent guarantee insurance cost?

The price of your insurance depends on several factors. Every property is different, and this affects the cost of the insurance because it impacts the rental income and how much you’ll need covered.

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Firstly, the price of your insurance depends on what policy you choose. Some agencies will ask for a flat rate, whereas some will tailor it to the specific properties you are a landlord for. If you’re a landlord using a letting agent, many agents offer rent guarantee insurance as part of their fees which reduces the hassle of finding a separate policy! 

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Plus, landlord insurance packages don’t always include the same range of policies so it’s important you check what you’re signing up for and that rent guarantee insurance is a part of it! Check the terms and conditions or simply ask.

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The cost also depends on the size, location, and type of property. Each company will offer a different price for the same property so it’s important to not just settle for the first insurance package you see.

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Rent Guarantee insurance is also tax deductible, so don’t forget to factor this into your costs.

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Ultimately, the cost of your rent guarantee insurance depends on which company policy you choose, the features of your property, and how competitive prices are at the time you buy it.

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It’s a worthwhile investment that will protect your income as well as minimise your stress as a landlord.

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How Lets Insure can help

If you’d like to chat with a professional about the cost of Rent Guarantee Insurance, you can sign up to our services for free or contact us with any questions you may have and we will be happy to help! 

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Lets Insure is an experienced provider that specialises in Rent Guarantee Insurance, Home Emergency Assistance, and Deposit Replacement Insurance all across the UK. With our expertise, protection and compliance for landlords, we should be your first choice for rent guarantee insurance.

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