Does Landlord Insurance Cover Loss of Rent?

If you're a landlord, your rental income is key. But what happens if your tenant can't — or won't — pay the rent? Or if legal action is needed to evict them?

Standard landlord insurance typically does not cover lost rent in these cases. But you can choose to add Rent Guarantee Insurance to your policy. This extra cover helps protect your income if a tenant falls into arrears.

In this blog, we explain when and how loss of rent is covered, the requirements that must be met, and how to obtain the right cover in place.

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When Does Landlord Insurance Cover Loss of Rent?

Loss of rent isn't automatically included in most landlord insurance policies. You'll usually need to add this as an optional extra, called Rent Guarantee Insurance.

At Got You Covered, our Landlords Legal Expenses & Rent Guarantee policy provides cover when:

• Your tenant fails to pay the rent, and legal action is needed.
• You suffer rent arrears during the eviction process.
• You need help with legal expenses, such as eviction proceedings or disputes over property damage.

This policy gives you peace of mind and helps protect your income, but there are strict conditions that must be met at the start of the tenancy.

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What Are the Requirements to Make a Claim?

Rent Guarantee Insurance comes with strict conditions. To make a successful claim, landlords must follow specific steps before the tenancy begins, including reference checks and affordability assessments.

Because these requirements can vary between insurers, it's vital that you:

• Read your policy documents carefully.
• Make sure all tenant checks are fully completed and documented.
• Ask your insurer if you're unsure about anything.
• Understand your legal obligations as a landlord — you can read more about these in     the official GOV.UK guide to renting out property.

You can view the full terms for our cover here:

👉 Download our Landlords Legal Expenses & Rent Guarantee policy document (PDF)

Claims may be rejected if the proper checks weren't done before the tenancy started or if documents are missing — so it's important to follow the requirements closely.

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What Else Is Not Covered?

While this policy offers strong protection, it won't cover:

• Social housing tenancies or council-placed tenants.
• Rent disputes over commercial lets or company tenancies.
• Claims involving dishonest or malicious acts.
• Rent lost due to property damage (e.g. fire or flood — that's a different type of cover).

For a full list, read our Landlord's Legal Expenses & Rent Guarantee policy document or speak to our team on 0330 341 4540.

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Final Tips

Before relying on your insurance to cover missed rent, make sure:

• You've added Rent Guarantee Insurance to your landlord policy.
• You fully reference your tenants and keep the documentation.
• You understand the exclusions, such as commercial tenancies or claims in the first 90 days.
• You receive rent and deposit before tenants move in.

To speak with one of our advisors or request a quote, visit our Landlord's page to learn more or call us at 0330 341 4540.

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