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Rent guarantee insurance can protect a landlord’s income when a tenant stops paying rent. Depending on the policy, it may also cover legal costs connected with recovering possession or pursuing arrears.
It is not a substitute for careful tenant checks or a cash reserve. Cover depends on the tenant, tenancy and property meeting the insurer’s conditions when the policy starts and when a claim is made. The policy wording and schedule always govern what is covered.
A rent guarantee policy pays an agreed amount of unpaid rent after an accepted claim. Policies set limits on the monthly rent, how long payments continue and when a claim must be reported. They may also include legal expenses and access to legal advice.
A policy may require evidence that the tenant passed specified affordability and credit checks before the tenancy began. Policies may also have strict reporting deadlines after the first missed payment. Read the policy wording before buying rather than relying on a short product summary.
The names sound similar, but they cover different events.
Rent guarantee insurance deals with tenant default. It may pay when a tenant in the property does not pay rent, subject to the claim conditions.
Loss-of-rent cover is usually part of buildings insurance. It generally applies when insured damage, such as a fire or flood, leaves the property uninhabitable and rent cannot be collected while repairs are carried out. It usually does not cover a tenant simply falling behind on rent.
A landlord may need both types of cover because they address separate risks. Check the wording of each policy.
Rent guarantee insurance may suit landlords who depend on rent to meet a mortgage or other regular property costs. It can also help someone with one or two properties, where a single non-paying tenancy would affect most of their rental income.
It will not be the right choice for every landlord. Someone with a larger cash reserve may prefer to carry the risk, while another landlord may value more predictable income and access to legal support. Compare the premium and protection with the amount of missed rent and legal costs you could comfortably absorb.
The Alan Boswell rent guarantee product starts at £195 per tenancy when bought with Alan Boswell landlord insurance. Standalone cover costs £250 per property for a year where the monthly rent is no more than £2,500. Buying it with the landlord insurance therefore saves £55 at the prices published when this article was updated.
The product covers up to £2,500 of rent each month for up to 15 months. It can then pay 75% of the rent for up to three months after eviction. It also includes legal expenses of up to £100,000 and a 24-hour legal advice line.
Cover is subject to acceptance evidence. Alan Boswell says the tenant’s income will normally need to be at least 2.5 times the monthly rent, rising to three times for a self-employed tenant. The tenant must also meet the policy’s credit criteria relating to county court judgments, bankruptcies and individual voluntary arrangements.
Required records include two forms of identification, with at least one containing a photograph, a legal tenancy agreement, and the legal documents required for the tenancy. Check the current policy wording linked from the product page before arranging cover. The wording, any endorsement and the individual policy schedule take priority over this summary.
Contact the tenant first. A missed payment may be a banking error or a short-term problem that can be resolved quickly. Keep a record of messages, calls, amounts due and any payments received.
Don't wait for arrears to build before contacting the insurer. Under Alan Boswell’s current claims guidance, the landlord can notify the claims team from 21 days after the first late payment so that mediation can begin. Submit the claim promptly with the requested tenancy, referencing and rent records.
Generally, you must have two full months of arrears before you can make an eligible rent guarantee claim. Notify the insurer within 90 days of the initial loss. If you notify them between 61 and 90 days, one month’s rent is deducted from the claim.
Section 21 ended for private landlords in England on 1 May 2026. An English private landlord seeking possession now uses the section 8 grounds and normally serves Form 3A. Wales has a separate possession-notice system under the Renting Homes (Wales) Act 2016.
Do not assume that the same notice applies in both countries, or serve a notice simply because rent is late. The correct route depends on the jurisdiction, the tenancy or occupation contract and the grounds available. Alan Boswell’s current guidance says that, after accepting a claim and once the relevant arrears threshold is reached, its appointed solicitors handle the statutory notice and possession process. Contact the claims team before taking possession action independently, as acting outside the policy process could affect cover.
Rent guarantee insurance can soften the financial effect of serious rent arrears, but only where the tenancy meets the policy conditions, and the landlord follows the claims process on time. You can review the current terms and purchase options through the Guild’s rent guarantee insurance service page.