What is rent protection insurance?

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Rent protection insurance protects landlords against loss of rental income should tenants be unable to pay their rent. In addition, our policy includes legal expenses which will cover the legal costs of regaining possession of your property section notices, evictions, and professional legal advice, up to £100,000.

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Who is rent protection insurance for?

 

Rent protection insurance is recommended for anybody who could financially suffer should the property they are renting no longer be receiving a rental income. Even the best tenants may find themselves in a difficult situation and unable to pay the rent you rely on, so rent protection insurance is a valuable safety net should you no longer receive payments as expected.

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Rent Protection insurance in detail

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Rent protection insurance is a valuable insurance policy for many landlords who want rental income protection. Landlord insurance with rent protection and legal expenses is a perfect combination for any professional or residential landlord, providing cover if your tenant defaults and fails to pay the rent on your property.

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What do I need to check before buying a rent protection policy?

 

Before buying rent guarantee insurance, you should ensure that you meet all legal requirements for renting out a property and have the correct documents to hand. You will need to be able to provide evidence of the following:

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• Affordability – your tenant needs to be earning at least two and a half times the monthly rental amount (three times, if self-employed). This can be from working income, benefits, and pensions, or a combination of all three. Evidence of this income should be obtained (e.g. bank statements, pension statements, or proof from an accountant).
   

• A credit check clear of CCJs, bankruptcies or IVA’s – tenants need to be clear of IVA’s, CCJS and bankruptcies for at least 3 years.
   

• Proof of identification – we need two forms of ID to confirm the tenant’s identity, one of which needs to include a photo. We usually suggest a passport or driving licence along with a utility bill.
   

• A legal tenancy agreement – there must be a legal tenancy agreement in place at the time of making a claim, if this is not the case then the policy will be void.
   

The policy also requires that all documents you are required to issue by law have been issued to the tenant, these include:
 

• How to rent guide

• Gas safety certificate

• EPC

• Deposit prescribed information (if taken)

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Your tenants will have to be satisfactorily referenced using two forms of ID, one of which needs to be photographic, for a rent protection insurance policy to be valid. We will also accept evidence they have passed the right to rent as proof of identification.

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