Cost guide
How much does a Rent guarantee insurance cost?
Thinking about rent guarantee insurance? It's a smart way to protect your rental income. This guide helps you understand the likely costs and what you get for your money. Investing in rent guarantee insurance can give you real peace of mind. It covers you financially if your tenants can't pay their rent. It also helps with the legal costs of reclaiming your property if needed.
Typical price
£150 to £400
What's usually included
- £150 to £400 a year
- Legal expenses cover is often included
What changes the price
Property location
Where your property is situated can affect the insurance price.
Tenant referencing
Thorough tenant checks can sometimes lead to lower premiums.
Rent amount
Higher monthly rent values might mean slightly higher insurance costs.
Cover duration
The length of your policy, often 6 or 12 months, impacts the price.
Excess amount
Choosing a higher excess can sometimes reduce your premium.
Policy features
Extra benefits like legal helpline access can be included.
Prices by region
| Region | Low | Typical | High |
|---|---|---|---|
| London | £250 | £350 | £450 |
| South East | £200 | £300 | £400 |
| South West | £180 | £270 | £370 |
| East of England | £190 | £280 | £380 |
| Midlands | £170 | £250 | £350 |
| North West | £160 | £240 | £340 |
| North East and Yorkshire | £160 | £230 | £330 |
| Scotland and Wales | £160 | £230 | £330 |
Questions people ask
What exactly does rent guarantee insurance cover?
It typically covers your rental income if your tenant stops paying. It also often includes legal costs associated with recovering unpaid rent and possession of your property.
Do I need to reference my tenants before getting cover?
Yes, comprehensive tenant referencing is usually a requirement for most policies. This helps ensure that the tenants meet certain financial criteria before you get cover.
How long does the cover usually last?
Policies are generally offered for 6 or 12 month periods. You can then renew your policy, often after reviewing your tenant's circumstances.
Will it cover legal fees if I need to evict a tenant?
Absolutely, most rent guarantee policies include legal expenses cover. This can be a huge help with the costs involved in the eviction process.
Is the cost of rent guarantee insurance tax deductible?
Property expenses like insurance premiums can often be deducted from your rental income for tax purposes. We recommend speaking with a tax advisor for personalised advice on your situation.
Can I get cover for an existing tenant?
Yes, it is often possible to get cover for existing tenants. However, you will still need to complete up to date referencing checks for them.