What rent guarantee insurance costs, and when it pays out

Rent guarantee insurance pays the rent when your tenant stops paying, usually with legal costs for recovering possession bundled in. Current products cost less than most landlords expect, around £200 a year per tenancy at the two providers priced below.

The product is sold under two names, rent guarantee and rent protection, which mean the same thing. It's an insurance policy on the tenancy's cash flow, conditional on how the tenancy was set up. Policy terms vary widely between insurers, and this is general information rather than financial advice.

What it costs in 2026

The NRLA's rent protection product, underwritten through Total Landlord, is a set price of £193.80 per tenancy agreement, covering unpaid rent up to £2,500 a month for up to six months plus up to £100,000 of legal expenses. Broker Alan Boswell prices its equivalent at £195 for twelve months when bought alongside its landlord insurance, or £250 standalone, with cover running up to fifteen months plus three months at 75% of rent after eviction while you re-let.

On a £1,000 a month tenancy, £193.80 is about 1.6% of the year's rent. Set that against the exposure. Six months of arrears on the same tenancy is £6,000 before you spend anything on possession proceedings. The NRLA product also lists hotel expenses up to £150 a day and storage up to £20 a day, each capped at 30 days, among its covered extras.

Rent guarantee or legal expenses only

Legal expenses cover pays the cost of evicting a non-paying tenant, including solicitors and court fees, but not the missing rent itself. The price gap is large. The NRLA sells legal expenses alone at £26.20 per tenancy against £193.80 with rent protection, and Alan Boswell charges £60 to £80 against £195 to £250.

The choice comes down to cash flow. A landlord who could absorb six months of lost rent but not a contested possession claim can sensibly buy the cheaper cover. A landlord with a mortgage on the property, worth checking against your buy-to-let mortgage terms, usually can't absorb either.

The conditions that decide whether it pays

Every rent guarantee policy is conditional on tenant vetting done before the tenancy starts. Alan Boswell requires tenants earning at least two and a half times the monthly rent, or three times if self-employed, with a credit record clear of CCJs, IVAs and bankruptcy for three years. The NRLA product requires an evidenced four-point reference covering ID, address, credit and employment, applied to any guarantor as well. Rent guarantee usually sits as an add-on to the buildings and liability policy we cover in our separate guide to landlord insurance.

There are procedural traps too. A signed written tenancy agreement must exist or the policy is void, the NRLA requires a deposit of at least one month's rent, and claims have deadlines: 45 days at the NRLA, 90 days at Alan Boswell where notifying after 60 days costs you a month's rent, and at Alan Boswell payments start only after the second missed payment.

Why the payout window matters more now

Since the Renters' Rights Act came fully into force in England on 1 May 2026, possession runs through court proceedings rather than section 21 notices, so the time between the first missed payment and vacant possession is the figure to stress-test. Policies cap the payout period, six months at the NRLA and up to fifteen at Alan Boswell, and the legal expenses element does the real work in a defended claim.

The practical conclusion is unglamorous. Self-managing landlords who let on a handshake and skip formal referencing are buying cover that can never pay out. If you buy the policy, run the referencing to the insurer's standard rather than your own.

If the next property is still to be bought, you can compare conveyancing quotes for a buy-to-let purchase through Moving Compared.