Rent guarantee insurance pays the rent your tenant owes while you go through the legal process to recover the property, up to a limit and for a set number of months. It is usually sold with landlord legal expenses cover, which pays the solicitor and court costs of that process. It only pays out if the tenant passed the referencing the policy requires before they moved in.
Since section 21 was abolished on 1 May 2026, possession for arrears in England runs through section 8, so it's worth understanding exactly what these policies pay for and when. This guide explains rent guarantee, legal expenses and "guaranteed rent" schemes, and how to decide if the cover is worth it on one property.
Rent guarantee vs legal expenses vs guaranteed rent schemes
Three things often get mixed up:
Rent guarantee insurance pays lost rent when a tenant falls into arrears, usually until you regain possession or the policy limit is reached.
Landlord legal expenses insurance pays legal costs: solicitor fees, court fees and sometimes enforcement, for possession claims and other tenancy disputes. Some policies also cover disputes with contractors or neighbours.
Guaranteed rent schemes are offered by some letting agents or companies. They pay you a fixed rent whether or not the property is let, under a contract with that company. That's a commercial arrangement, not an insurance policy, and it depends on the company staying solvent.
Rent guarantee and legal expenses are often bundled, either as an add-on to a landlord policy or as a stand-alone policy, sometimes through a letting agent.
How a rent guarantee claim works now
After the Renters' Rights Act, the route for arrears in England usually looks like this:
Rent is missed. Most policies need you to tell the insurer promptly once rent is late. Read the notification deadline in your policy.
Notice is served. A section 8 notice is served on the relevant grounds. For serious arrears (ground 8) the tenant must owe at least three months' rent if they pay monthly, or 13 weeks' if they pay weekly or fortnightly, and the notice period is four weeks.
Court claim. If the tenant doesn't leave or pay, a possession claim goes to court. The arrears must still be at the ground 8 threshold at the hearing. Discretionary grounds (10 and 11) can be used for lower or persistent arrears.
Possession and enforcement. If an order is made and the tenant still doesn't leave, enforcement by bailiffs follows.
The policy pays rent during this period, up to the limit, often until vacant possession or the limit is reached.
Our guide to what to do when a tenant isn't paying rent covers the section 8 route in more detail.
What insurers usually require
Rent guarantee claims fail most often on conditions, not on the event itself. Typical conditions include:
Referencing before the tenancy starts. The insurer will set a standard: credit checks, income or affordability, previous landlord references, and sometimes a guarantor. A tenant who doesn't meet it may not be covered.
A written tenancy agreement and correct paperwork: deposit protected, prescribed information given, gas and electrical certificates in place (see our landlord safety certificates checklist).
No arrears at inception. Many policies won't cover a tenancy that was already in arrears when cover started.
Prompt notification and cooperation with the insurer's solicitors.
Rent within a limit. Policies cap the monthly rent they will cover.
If you're adding cover to an existing tenancy, ask whether the insurer will accept it and what referencing it needs. Some policies only cover tenancies referenced at the start.
What it doesn't cover
Common exclusions to look for:
arrears that started before the policy did,
tenants who weren't referenced to the policy standard,
disputes you knew about when you bought the policy,
damage to the property (that's a separate cover, see our tenant damage guide),
arrears after the tenant has left, in some policies,
excesses, such as the first month's rent.
Is rent guarantee insurance worth it for one property?
There's no single answer, but these are the questions that decide it:
Can you cover the mortgage and bills if rent stops for several months? If one missed rent would put you under pressure, the cover is doing more for you.
How long would recovery take? With section 21 gone, possession depends on proving a ground. That can take longer than before if the tenant disputes it, so the length of cover matters more.
What does it cost compared with the rent? Ask for the premium and limits side by side and compare them with what a few months' lost rent and legal costs would mean to you.
Is the tenant referenced to the insurer's standard? If not, the cover may not help.
Do you already have legal expenses cover in your landlord policy? Don't pay twice for the same thing, but check that what you have covers section 8 claims.
Accidental landlords with one property and a mortgage are often the most exposed to a gap in rent, because there's no other income from the property to fall back on. Our guide to renting out your home covers the first steps.
What affects the cost
We don't publish "from £X" prices, because the premium depends on your property and tenant. The main factors are:
the monthly rent and the limit you choose,
how many months it pays and the excess,
the referencing standard and whether there's a guarantor,
whether legal expenses are included and the legal costs limit,
whether it's an add-on to a landlord policy or stand-alone.
For more on what drives landlord insurance prices generally, see how much landlord insurance costs.
Tips to make sure the policy pays
Reference every tenant to the insurer's standard before they move in, and keep the reports.
Protect the deposit and serve prescribed information within the legal time limits.
Keep gas, electrical and EPC certificates current and give tenants copies.
Keep a clear rent record and tell the insurer as soon as rent is missed, within the policy's deadline.
Don't agree informal arrangements with the tenant without checking the policy first.
Frequently asked questions
Does rent guarantee insurance still work without section 21?
Yes. It pays rent while you recover possession, which now goes through section 8. Check that the legal expenses part of your policy has been updated for section 8 claims and doesn't rely on section 21.
Can I buy rent guarantee cover for an existing tenant?
Sometimes. Many insurers need the tenant to be referenced to their standard and the rent to be up to date when cover starts. Ask before you buy.
Is landlord legal expenses the same as rent guarantee?
No. Legal expenses pays legal costs. Rent guarantee pays lost rent. They're often sold together.
How long does rent guarantee insurance pay for?
It depends on the policy. Most cap the number of months or the total amount, and some stop when you regain possession. Read the limit before you buy.
Does rent guarantee cover damage to the property?
No. Damage is covered, if at all, under your landlord policy's accidental or malicious damage cover.
Can I require my tenant to have a guarantor?
You can still ask for a guarantor, and some rent guarantee policies need one for certain tenants. You can't refuse tenants because they receive benefits.
Ask us to check your cover
Send us your current landlord policy or renewal and we'll review it and come back with quotes from the insurers on our panel, including rent guarantee and legal expenses options. Start with your buy-to-let details or compare landlord quotes.
Meshed is a trading name of Mesh'd Limited, authorised and regulated by the Financial Conduct Authority (FRN 1033248). We charge a flat 10% broker fee. This guide is general information, not legal advice.
Vincent Liu
Co-founder & CTO
