Rent Protection Insurance: A Guide for Landlords
Renting out a property comes with risks, including tenants who fail to pay rent. Rent protection insurance (also known as rent guarantee insurance) ensures landlords continue receiving rental income, even if tenants default.
What Is Rent Protection Insurance?
Rent protection insurance is a policy that covers lost rental income when a tenant:
- Fails to pay rent
- Leaves unexpectedly
- Requires legal eviction
Most policies also include legal expense cover, helping landlords reclaim unpaid rent or remove problem tenants.
What Does Rent Protection Insurance Cover?
| Coverage | Details |
|---|---|
| Unpaid Rent | Covers lost rental income for up to 12 months. |
| Legal Costs | Pays for eviction proceedings if necessary. |
| Tenant Default | Covers unpaid rent if the tenant leaves unexpectedly. |
| Vacant Periods | Some policies cover rental loss while finding a new tenant. |
Why Should Landlords Get Rent Protection Insurance?
- Guaranteed income – Ensures landlords don’t suffer financial loss due to tenant issues.
- Legal protection – Covers expensive legal proceedings for evictions.
- Peace of mind – Helps landlords manage unexpected tenant problems with confidence.
How Much Does Rent Protection Insurance Cost?
The cost depends on:
- Monthly rent amount
- Coverage level (e.g., legal expenses, vacant period cover)
- Tenant background checks (some insurers require references)
Typical policies range from 2-5% of annual rent but provide significant protection.
How Fraser Bond Can Help
At Fraser Bond, we assist landlords in:
- Choosing the best rent protection policy
- Finding reliable tenants to reduce risks
- Managing rent collection and legal issues
Conclusion
Rent protection insurance is essential for landlords who want to secure their income against unpaid rent and legal disputes. If you're a landlord looking for expert advice on rent protection, contact Fraser Bond today for tailored solutions.
