For many landlords, rental income isn’t simply a bonus – it’s essential for covering mortgage payments, maintenance costs, insurance premiums and other property expenses. While thorough tenant referencing significantly reduces the risk of rent arrears, no landlord can eliminate the possibility of a tenant defaulting on rent payments or becoming involved in a costly legal dispute.
That’s where Rent Guarantee Insurance can provide valuable peace of mind.
Haslams has a strong track record of collecting rent on time and in full for our landlords, supported by robust arrears management processes and proactive communication with tenants. However, even the most carefully managed tenancies can encounter unforeseen issues. That’s why we regularly see the value of Rent Guarantee Insurance, which can protect landlords from substantial losses arising from rent arrears, legal disputes and possession proceedings.
For just £45 per month including VAT, landlords can protect their rental income and gain access to legal expenses cover should a tenancy dispute arise.
What Is Rent Guarantee Insurance?
Rent Guarantee Insurance (sometimes called Rent Protection Insurance) is designed to protect landlords against financial loss if a tenant stops paying rent.
Policies typically include:
- Rent payments covered when tenants fall into arrears
- Legal expenses cover for possession proceedings
- Eviction support and court costs
- Rent recovery services
- Cover for certain tenancy disputes
The Rent Protection and Legal Expenses cover available through Haslams provides protection until vacant possession is achieved, helping landlords maintain income while regaining possession of their property. It also includes legal expenses cover of up to £100,000 if court action becomes necessary.
Why Is Rent Guarantee Insurance More Important Than Ever?
The lettings landscape continues to evolve, and possession claims can take many months to resolve. Even when landlords have legitimate grounds for possession, legal processes can be lengthy and expensive.
The Rent Protection and Legal Expenses policy available through Haslams has been enhanced to address the challenges created by changing rental legislation and longer possession timelines. Unlike some policies that limit rent payments to a fixed period, cover continues until vacant possession is achieved following an accepted claim.
For landlords, this means greater certainty over rental income even during prolonged disputes.
Case Study: £2,000+ in Legal Costs Due to Anti-Social Behaviour
One Haslams landlord had a tenant occupying a property on a two-year fixed-term tenancy.
The rent was being paid by the local authority, which initially gave the landlord confidence that the tenancy would run smoothly. However, serious anti-social behaviour issues emerged, creating significant problems for neighbours and the local community.
Ultimately, the landlord needed to regain possession of the property.
Despite the rent being paid, the possession process required specialist legal support and resulted in solicitor costs exceeding £2,000.
Had Rent Guarantee and Legal Expenses Insurance been in place, these legal costs would have been covered under the policy.
In addition, because the tenancy still had approximately 18 months remaining on the fixed term, the landlord could potentially have benefited from ongoing rent payments while possession was pursued and the property was recovered.
Following this experience, the landlord chose to take out Rent Guarantee Insurance across their entire property portfolio. At £45 per month including VAT, the annual cost of cover is just £540 per year – significantly less than the legal costs incurred from a single tenancy issue.
Case Study: £8,000 in Rent Arrears
In another recent case, one of our landlords accumulated more than £8,000 in unpaid rent after a tenant stopped making payments.
Although every effort was made to recover the arrears and resolve the matter, the landlord faced a substantial financial loss while continuing to meet their own property-related commitments.
With Rent Guarantee Insurance in place, much of this financial exposure could have been avoided.
To put this into perspective, £8,000 in lost rent is equivalent to almost 15 years’ worth of Rent Guarantee premiums at £45 per month including VAT.
Following the experience, the landlord elected to protect all future tenancies with Rent Guarantee cover.
Common Misconceptions About Rent Guarantee Insurance
“My Tenant Passed Referencing, So I’ll Be Fine”
Most tenants who fall into arrears pass referencing at the start of their tenancy.
Life circumstances can change unexpectedly due to:
- Redundancy
- Illness
- Relationship breakdown
- Financial hardship
- Changes in employment
Referencing reduces risk; it does not eliminate it.
“The Council Pays the Rent, So There’s No Risk”
As our anti-social behaviour case demonstrates, rent payments are only one part of the equation.
Legal disputes, possession proceedings and tenancy breaches can still create significant costs for landlords, even where rent is being paid by a third party.
“I’ve Never Had a Problem Before”
Many experienced landlords go years without encountering serious arrears or possession issues.
However, when problems do occur, the financial impact can be substantial. One successful claim can often outweigh many years’ worth of premiums.
What Does Rent Protection Cover?
While cover varies by policy, key benefits available through Haslams include:
- Rent payments until vacant possession is achieved following an accepted claim
- Legal expenses cover up to £100,000
- Possession and eviction proceedings
- Rent recovery support
- Cover for certain tenancy breaches
- Property damage legal assistance where qualifying criteria are met
- Alternative accommodation and storage costs in certain circumstances
- Protection if the first month’s rent is not paid after the tenancy commences
How Much Does Rent Guarantee Insurance Cost?
At Haslams, Rent Guarantee Insurance is available for £45 per month including VAT.
That’s just £540 per year to help protect against:
- Thousands of pounds in lost rental income
- Costly possession proceedings
- Solicitors’ fees
- Court costs
- Delays in regaining possession of your property
Consider the comparison:
| Potential Cost | Typical Amount |
|---|---|
| Rent Guarantee Insurance | £540 per year |
| Solicitor fees for possession proceedings | £2,000+ |
| Rent arrears (real Haslams case) | £8,000+ |
| Six months’ lost rent on a £1,500 pcm property | £9,000 |
For many landlords, Rent Guarantee Insurance represents one of the most cost-effective ways to protect their investment.
Frequently Asked Questions
Is Rent Guarantee Insurance worth it?
For many landlords, yes. A single possession claim or prolonged period of rent arrears can cost thousands of pounds in lost income and legal fees. At £45 per month including VAT, many landlords view the cover as an important safeguard against these risks.
Does Rent Guarantee Insurance cover eviction costs?
The cover available through Haslams includes legal expenses cover up to £100,000 for qualifying claims, helping landlords manage the costs associated with possession proceedings.
How much rent can be covered?
The policy available through Haslams pays rent until vacant possession is achieved following an accepted claim, providing reassurance during what can sometimes be a lengthy legal process.
Can landlords claim legal fees?
Yes. Legal costs associated with qualifying possession proceedings and tenancy disputes are covered within the policy terms and limits.
Protect Your Rental Income for £45 Per Month
Being a landlord inevitably involves risk, but that doesn’t mean you have to face that risk alone.
At Haslams, we combine thorough tenant referencing, proactive property management and access to Rent Guarantee Insurance to help protect our landlords’ investments and income.
The landlords featured in the case studies above both learned expensive lessons about the potential cost of tenant issues. Today, every property in their portfolios benefits from Rent Guarantee cover.
For just £45 per month including VAT, you can help safeguard your rental income, reduce your exposure to legal costs and gain valuable peace of mind.
To find out more about Rent Guarantee Insurance and whether it’s right for your property portfolio, speak to the Haslams Client Management & Support team today on 0118 960 1000.