Introduction
Letting property in London offers exceptional income potential — but it also carries real financial risk. Even well-vetted tenants can fall behind on payments due to job loss, illness, or personal circumstances. For landlords, this can quickly translate into thousands of pounds in lost rent and legal costs.
Rent Guarantee Insurance provides critical protection by covering your monthly rental income if a tenant defaults. At Fraser Bond, we help landlords across London access robust, competitively priced rent guarantee policies — and combine them with expert property management for maximum security and peace of mind.
What Is Rent Guarantee Insurance?
Rent Guarantee Insurance (also known as Rent Protection Insurance) is a policy that ensures landlords continue receiving rental income even if a tenant:
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Stops paying rent
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Falls into arrears
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Requires formal eviction proceedings
These policies typically include:
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Monthly rent payments up to a capped limit
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Legal expenses coverage (e.g., for eviction or court action)
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Arrears recovery and court representation
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Optional cover for vacant periods or ongoing disputes
Why Landlords in London Need Rent Guarantee Insurance
✅ Protect Against Unpaid Rent
A single missed rent payment in London can exceed £2,000 per month — multiple months can severely impact cash flow and mortgage obligations.
✅ Cover Eviction and Legal Costs
Tenant evictions can cost thousands in legal fees and take months. Most rent guarantee policies cover legal representation and court fees.
✅ Peace of Mind in Uncertain Times
Even well-referenced tenants can face sudden financial hardship. Insurance provides certainty in an unpredictable market.
✅ Stronger Portfolio Stability
For portfolio landlords, rent protection ensures that one problem tenant doesn’t impact wider investment performance.
What Does Fraser Bond’s Rent Guarantee Insurance Include?
Fraser Bond works with leading underwriters to offer comprehensive rent guarantee cover, integrated with our letting and management services.
1. Guaranteed Monthly Rent Cover
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Up to £2,500–£5,000/month per property
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Up to 12 months of missed rent covered
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Payable from the first or second month of arrears (depending on policy)
2. Legal Expenses Protection
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Up to £50,000 legal cover
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Eviction proceedings
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Court representation and bailiff services
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Mediation and recovery costs
3. Tenant Default Support
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Arrears tracking and communication
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Legal notice issuance (Section 8, Section 21)
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Step-by-step action plan in case of non-payment
4. Optional Add-Ons
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Rent guarantee during void periods (for managed properties)
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Home emergency cover (plumbing, heating, electrics)
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Public liability protection
Who Should Get Rent Guarantee Insurance?
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Buy-to-let landlords seeking income protection
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Overseas landlords unable to intervene quickly during disputes
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Portfolio investors who need to protect cash flow
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New landlords managing high-value or mortgaged properties
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HMO landlords with multiple tenant dependencies
How Fraser Bond Makes It Easy
We simplify the process by:
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Screening tenants to meet insurer requirements
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Handling all paperwork and policy setup
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Managing claims directly on your behalf
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Offering rent guarantee as part of our full property management service
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Ensuring smooth integration with deposit protection and compliance
Is It Worth It?
Absolutely — especially in London. For as little as £200–£300/year, rent guarantee insurance could save you:
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£12,000+ in missed rent over 6 months
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£3,000+ in legal and court fees
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Months of stress, time, and uncertainty
Conclusion
Renting out a property in London is a lucrative but increasingly regulated venture. Even with great tenants and expert management, unexpected arrears and legal issues can arise.
Fraser Bond’s rent guarantee insurance provides a financial safety net that ensures you’re paid — even when your tenant isn’t. Paired with our full-service letting and legal support, you gain peace of mind and uninterrupted income.
