Rent guarantee insurance
An insurance policy a landlord buys that pays the rent, and often legal costs, if a tenant falls into arrears. It is the landlord's cost, never the tenant's.
In short: Rent guarantee insurance pays a landlord the rent, up to a limit, when a tenant stops paying, and often covers the legal costs of recovering the home. It is optional and bought by the landlord. Under the Tenant Fees Act 2019 the cost cannot be passed on to the tenant.
Money, tax and insuranceFinding a tenant
England. Checked against the law on 5 October 2026. Information, not legal advice.
Policies differ, so read the terms. Typical conditions:
- the tenant must have passed referencing that meets the insurer's standard, sometimes with a guarantor;
- arrears must be reported within a set number of days;
- there is often an excess period before payments start, and a monthly or total limit;
- legal expenses cover may only apply to certain grounds or courts.
Since 1 May 2026 landlords in England can take no more than one month's rent in advance, which has made insurance and guarantors more common ways to manage the risk of arrears.
A landlord cannot require a tenant to buy or pay for this insurance: that would be a prohibited payment.
Related: Guarantor, Prohibited payment, Grounds for possession
Where this comes from
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