Rent Guarantee Insurance

Rent Guarantee Insurance protects landlords in the event of a tenant not paying their rent, so your investment is not at risk.

12 months cover
£299
This insurance is administered by Arc Legal Assistance Ltd and underwritten by Royal & Sun Alliance Insurance Ltd.
<span>Rent Guarantee</span> Insurance
4.5* Score on Feefo

4.5* Score on Feefo

See what our customers think and read our reviews

Cover for rent arrears

Cover for rent arrears

You’re covered up to £2,500 in rent arrears, per month

£25,000 cover

£25,000 cover

Get covered for eviction and rent arrears and access legal advice.

What does Rent Guarantee Insurance cover?

Breach of tenancy agreement
Breach of tenancy agreement
Costs to pursue the tenant following a breach of any of their obligations under the tenancy agreement.
Pursuit of rent arrears
Pursuit of rent arrears
Costs to pursue rent arrears which began during the period of insurance.
Eviction
Eviction
Costs to evict anyone in the property without your permission.
Legal defence
Legal defence
Costs to defend civil proceedings in respect of any act or omission by you arising from your ownership or management of the property.
Rent arrears guarantee
Rent arrears guarantee
Costs for rent arrears owed by the tenant.
Legal helpline
Legal helpline
Free access to legal advice and guidance.
Excellent service. Respectful & attentive, we are very satisfied! Very valuable advice was given. Thanks!
Allen Panter
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What is Rent Guarantee Insurance for landlords?

For landlords, it’s no surprise that rent arrears and tenant debt can be concerning. Rent Guarantee Insurance (also known as Tenant Default Insurance or Rent Protection) makes sure that the landlord is covered in the event of rent going unpaid and also that any subsequent action needed is taken care of. This includes any legal costs that may be incurred by the landlord. Having a policy like this is in line with the latest eviction laws, which state what landlords need to be aware of in terms of tenancy notice. For example, if a landlord is planning to evict a tenant, the tenant can stall the hearing if they can prove they can start making their payments. This process can sometimes take a long time, which can result in the landlord losing income.

Rent Guarantee Insurance protects landlords during times of economic uncertainty. In total, 58% of evictions take place because of rent arrears. For renters, 9% claim paying their rent is difficult, 4% are currently in arrears, while 5% have been in arrears in the past. As rent prices go up and debts increase, coverage such as Rent Guarantee Insurance becomes increasingly important. This is why we have seen an increase in landlords putting a Rent Guarantee Insurance policy in place.

What is Rent Guarantee Insurance for landlords?

Don’t get caught out of pocket

If you don’t want to leave receiving rent to chance, rent guarantee insurance is definitely the way to go. You may never need to use its might, but you’ll be oh-so grateful if you do. Get in touch to talk about getting some peace of mind.
Rent Guarantee Insurance
Rent Guarantee Insurance
Even the best tenants can run into problems which make it hard to pay rent. Protect your rent up to £2,500 per month.
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How does Rent Guarantee Insurance work?

The process of getting a Rent Guarantee Insurance policy put in place is easier than you may imagine. Before you apply, there are three things you’ll need to provide us with before you can be deemed eligible. These are:

  • The tenant’s references
    The Assured Shorthold Tenancy
    Evidence that the tenant’s security deposit is placed in an official tenancy deposit scheme.

The Assured Shorthold Tenancy contract should clearly state the date when the tenancy began, the date when the rent is due, the time frame of the lease, and a rent review clause.

From there, Mashroom will proceed with issuing your Rent Guarantee Insurance in three simple steps:

The benefits of having this protection as a landlord

Mortgage payments don’t stop regardless of your financial status. You may lose your income but banks will still expect you to pay the mortgage. This means landlords can have their properties repossessed if these payments are not made.

Due to the pandemic and COVID, it has now become a necessity rather than an added extra to have Rent Guarantee Insurance. Over the past couple of years, due to the global health crisis and its impact on people’s jobs and livelihoods, there has been a rise in claims from landlords trying to recoup their mortgage payments and this is not going to change anytime soon. The laws set in place as a result of the pandemic still remain and COVID remains unpredictable. The National Residential Landlord Association (NRLA) found the housing market was still feeling the implications from the first lockdown as rental debt has increased by 41% since May, with tenants now owing an average of £1270. It has also been reported that 430,000 tenants admit to owing their landlord money. Due to the pandemic, we were in and out of lockdown which meant landlords had to rely heavily on their Rent Guarantee Insurance in order to keep up with their payments.

The benefits of having this protection as a landlord

Are there any instances where this cover won’t cover your losses?

As part of our policy, we recover rental costs for properties up to £25,000. This works out to your tenant paying rent up to £2,500 a month. Should your rent arrears exceed this amount, we would not be able to cover the additional sum you have lost.

Another instance where you may not be covered is if your property is split into two apartments. You are required to have one policy per tenancy agreement; therefore, if this is the case, the annual premium will be charged.

Are there any instances where this cover won’t cover your losses?

What are the costs of Rent Guarantee Insurance policies?

How much will a Rent Guarantee Insurance policy cost?

Will Rent Guarantee Insurance protect your rental income?

What happens if you don’t have a Rent Guarantee Insurance policy?

Other types of Mashroom insurance packages

Home Emergency Insurance

As a landlord, you are responsible for fixing any emergencies that occur in your rented property. Home Emergency Insurance ensures the cost of said emergency, as well as any repairs that may be required, is covered.

The emergencies covered include incidents such as the loss of keys, bathroom leaks, electrical issues, sudden boiler breakdowns, pest control, and much more. The insurance coverage also ensures you can provide alternative accommodation, should it be needed. Of course, all of this can become very costly without the help of Home Emergency Insurance, which is why it is a crucial consideration for any landlord.

Home Emergency Insurance

Tenants Contents Insurance

Contents Insurance refers to the policy landlords need to make sure their tenants have in place order to make sure the belongings within their properties are insured. Please note that this is different from insuring the property itself. Home Emergency Insurance and Rent Guarantee Insurance Policies are to do with the property itself, not its contents.

At Mashroom, Contents Insurance is paid on a monthly rolling plan, with no hidden fees. The Contents Insurance policy covers items such as furniture, clothes, and household electrical appliances, such as your freezer, microwave, kettle, and even less obvious items like hair straighteners. As many of us are now working from home more regularly, it also covers your home office, such as computers, laptops, mobile phones, printers, and general office equipment.
Your Contents Insurance policy will insure your possessions up to £30,000 against unfortunate incidents such as fires, theft, vandalism, and general wear and tear. As a landlord, you should be aware that your tenants are covered for any accidental damage they do to your property.

Tenants Contents Insurance

How to find the perfect tenant

Picking the right tenant to fill your property can be a laborious task. It is important to make the right choice, and while finding the right tenant might seem impossible, it is in fact possible, especially when you put the following in place. At Mashroom, we work with the landlord to maintain a good relationship with their tenants.

Running a background check

Running a background check

Thanks to technology, it has never been easier to carry out a background check on a potential tenant. You can learn more about their credit score and rental history, see if they are known for having parties on the property, giving you an idea of how reliable they are and if they are someone you want as a lodger.

Upkeep

Upkeep

To ensure you get the level of tenant applications you want and they stay, one of the main things you need to do is keep up with regular maintenance. If the walls need painting or a lock is broken or there is a problem with the sink, fixing them as soon as possible will go a long way in your relationship with your tenant, ensuring they feel safe enough to continue staying in the place. If you had a previous tenant living there, make sure the place is thoroughly cleaned and checked over for any damages before the new tenant moves in to avoid any issues. This will go a long way in establishing trust with your tenant.

Confirm the length of stay of the tenant

Confirm the length of stay of the tenant

Whether you are looking for a short-term renter or someone more long term, it is important to make sure this is all laid out with the prospective tenant before any agreements are signed and a deal is made. If you know you would prefer to have a tenant with a year’s lease, it is worth noting this down in your advert and making them aware of this in the first conversation you have with them.

Use a guarantor

Use a guarantor

You never know what can happen to a tenant financially. At the time they sign the lease they may have a stable job and are able to make the payments; however, six months later it could be a very different situation. This is why it is important you have two things in place. A Rent Guarantee Insurance policy to ensure you do not remain out of pocket. Secondly, ensuring a guarantor signs the lease gives you another level of protection to make sure your payments will be made.

Confirm your non-negotiables

Confirm your non-negotiables

This includes things such as allowing pets on the property or other people to stay on the premises long term. as this can often involve additional paperwork. Having this clearly indicated from the offset will mean you waste less time talking to unsuitable tenants who may be looking for a place with a dog or a place where their partner can essentially stay with them as a sharer.

Know the local area and market

Know the local area and market

Price is everything. Make sure the price of your property is in line with other properties in the area. Tenants will want to know things such as how accessible the public transport from the property is. Is there a supermarket nearby? If it is a family, how far it is from a school or the local park. Having this on hand from the offset will show the tenant you are a reliable landlord who knows the area.

We're on hand to help

Trust, loyalty and mutual support are very important to us, which is why our team of experts is not afraid to answer any hard-hitting questions you have about any of our services. For any policy-specific questions, please view our Frequently Asked Questions below or, alternatively, our friendly experts are on hand to answer your question, you can contact us using the form here or book a call below.

We're on hand to help

Still have questions? We have answers

Wondering if Rent Guarantee Insurance is right for you? We’ve got all you need to know right here!

Can tenants buy Rent Guarantee Insurance?

How can tenants protect themselves?

What insurances can tenants get?

Does Rent Guarantee Insurance cover tenants on housing benefits or DSS?

What could void a Rent Guarantee Insurance claim?

What else can I do to protect my investment?

Best Landlord Rent Guarantee Insurance comparison

It’s important you understand what is and isn’t covered by the Rent Guarantee and Legal Expenses Insurance. The examples and descriptions above are only intended as a guide and you will be able to find the full details in the policy document and Insurance Product Information Document. We do not provide personal recommendations regarding the arrangement of insurance cover. By asking us to quote for, arrange or handle your insurances, you are providing your informed agreement to our Terms of Business.