To help answer any questions you may have about Rent Guarantee insurance our business partners CLEAR Insurance Management have put together this guide to make sure you find the right cover for you. To find out more and arrange a free consultation please click here


What is Rent Guarantee insurance, and why is it important?

Non-payment of rent is always a risk for landlords – even if you carry out extensive tenant checks and insist on references.

There are many reasons why your tenants may fall into arrears with their rent, and not all of them are deliberate or malicious. A tenant could lose their job, for example, or be suffering with their mental health.

However, as their landlord you need to consider how you would be affected by the non-payment of rent. For instance, could you continue to afford the mortgage and other costs related to the property? What about the legal fees if you had to issue court proceedings against your tenant?

This is where Rent Guarantee insurance can help, as it can cover your monthly rental income if your tenants do not pay. Rent Guarantee insurance is sometimes confused with ‘loss of rent cover’, but that only provides cover if you are unable to let your property due to damage e.g. fire or flood.

With a Rent Guarantee policy, you can usually make a claim once your tenants have fallen one month behind with their rent. The policy will then continue to pay out for a fixed amount time, which is often between 6-12 months.


Do I need Rent Guarantee insurance?

According to Citizens Advice, half a million renters in the UK were in arrears as of January 2021, with the average amount owed in rent being £700. So, although Rent Guarantee Insurance is not a legal requirement, it can provide some peace of mind for landlords that they have some financial protection if their tenants fall into arrears.

You should consider getting Rent Guarantee insurance if:

  • You rely on your rental income to pay your mortgage
  • You are letting your property to new tenants

CLEAR Insurance Management offer Rent Guarantee including Legal Expenses as a standalone policy or as an add-on to a landlord insurance policy.

For more information and to arrange a free consultation please click here


What is covered?

  • Breach of Tenancy Agreement: Pursuit following a breach by the tenant of any of their obligations under the tenancy agreement.
  • Pursuit of Rent Arrears: The pursuit of rent arrears which commenced during the period of insurance.
  • Eviction: The eviction of anyone in the property without your permission.
  • Legal Defence: The defence of civil or criminal proceedings in respect of any act or omission by you arising from your ownership or management of the property.
  • Rent Arrears Guarantee: Rent arrears owned by the tenant.

The maximum amount payable per claim is £50,000, with a maximum of £2,500 per month for either six or 12 months.


Get a FREE landlord insurance quote

If your landlord insurance is up for renewal soon you can get a free online quote from CLEAR Insurance Management today: Get a Quote

If you would like to find out more about the cover provided by CLEAR Insurance Management you can contact them today to get a free consultation. CLEAR Insurance Management have extensive expertise in the property sector and access to a wide range of insurers to help NetRent landlords.

Get a free consultation now please click here

Cover features include:

  • Wider Cover including subsidence and contents.
  • Low excess levels starting at £100 (£1,000 for subsidence).
  • Inflation proofing via index linking or “Day one” increases.
  • Loss of rental income at 30% based on 36 month indemnity period. (Other limits are available)
  • Property owners’ liability cover at £5M (Option for increase to £10M is available).
  • Theft and malicious damage by tenants
  • Accidental Damage cover
  • Including cover for illegal cultivation of drugs (Dependent on Insurer)
  • Flexible approach to temporary un-occupancy between 60 and 90 days.
  • All tenant and property types accepted.
  • Residential, commercial or mixed property.
  • Occupied and unoccupied property.
  • Single properties or portfolios, including mixed portfolios.
  • Contents only option.


Clear Insurance Management Limited is an independent insurance broker which is authorised and regulated by the Financial Conduct Authority (FCA).  Registered number 307982.  Registered office: 1 Great Tower Street, London. EC3R 5AA.