Does Landlord Insurance Cover Loss Of Rent?

“Loss of Rent” insurance

If you’re lucky, your landlord insurance policy will include loss of rent cover as standard (mine does). If it’s not included, then it’s likely to be an optional add-on that you can include when you buy your policy if you want to be covered.

Technically, “loss of rent” insurance usually refers to and covers the following:

• Rental income if your rental property becomes damaged and/or inhabitable (i.e. due to fire or flood) and the tenant is forced to move out.
• Alternative accommodation – the cost of providing alternative accommodation.

It does not typically include missed payments by your tenant. So if your insurance policy includes “loss of rent” cover, please check what it actually covers and ensure you’re aware of the terms. I know there are more than a few landlords that were mortified to discover that it didn’t mean rent protection when they attempted to make a claim for rent arrears.

Do you need Landlord Loss of Rent Insurance?

It’s not a legal or requirement or anything like that. But I think the real question is, is it worth getting?

I can’t answer that for you, but I personally ensure I’m covered by it. I think it’s sensible to have, especially given the relatively painless cost (more on that below).

It’s also worth noting the following:

• Tenancy agreement – in some cases landlords can be contractually obliged as per the tenancy agreement, to provide alternative accommodation for their tenants in the event of that they need rehousing if the property becomes uninhabitable. So you may want to check contract to establish your position.

  If you are contractually obliged and you’re not covered by loss of rent insurance, not only will you miss out on rent protection, but you’ll also have to pay out of your own pocket to rehouse your tenants. Double-whammy!

• Mortgage lender – some mortgage lenders require rent loss insurance on any rental properties they’ve financed, so failing to be covered may breach the terms of your loan. So in the same vein and checking your tenancy agreement, it’s worth checking the details of your buy-to-let mortgage to check if it’s a requirement.

If either of those apply to you, then I’d say that there’s a strong argument for ensuring you’re covered by loss of rent insurance.

How to buy Landlord Loss of Rent Insurance

Do you already have landlord insurance?

First and foremost, I must once again implore to check your existing policy to determine whether you’re covered or not by loss of rent cover. As said, it is often included as standard with landlord insurance.

If you are unsure, then contact your provider for clarification. If it is the case that your current policy does not provide loss of rent cover, then ask them if you can add it onto your existing one (they’ll likely charge you a small premium for it).

I’ve personally never seen loss of rent insurance being offered as a standalone cover, it’s always been included as an add-on for a broader policy, usually building insurance.

Don’t have any landlord insurance?

If you currently don’t have any landlord insurance, but would like one that includes loss of rent cover, you can get a quote from my affiliate partner QuoteSearcher (I personally use them).

Rent Protection / Rent Guarantor Insurance (RGI)

If by “loss of rent” cover you mean protection against rent arrears (this is often what landlords are referring to, even though it’s technically a different type of cover, as discussed), then it is extremely unlikely covered by any standard landlord insurance policy and/or “loss of rent” insurance. But again, I can’t overstate how important it is to check the terms of your policy carefully to determine what you’re protected from.

In order to benefit from rent protection, you will need to get specialist Rent Guarantee Insurance (RGI).

RGI usually includes the following cover:

• Legal costs associated with eviction and repossession.
• Rent arrears cover if your tenant missed rent payments.

Extremely useful cover that provides thousands of landlords peace of mind. If you’re interested in finding out more about this type of cover, here’s a link to my guide on Rent Guarantee Insurance (RGI).

Since RGI is a specialist type of insurance it’s not always available from the same insurance provider that provides landlord building insurance. That means you may need to purchase it from a different provider if you want it. Below I have listed two reputable RGI suppliers that I’m always happy to recommend and be affiliated with:

Landlord Rent Guarantee Insurance (RGI) Providers

Supplier	Rating	Term	Details	Price from
Supplier	Rating 4.9 Google Reviews	Term 12 months	Details Included Free 14-day no quibble cancellation Tenancies with up to £3,000 monthly rent guaranteed Up to £50,000 total cover No excess on claiming Free legal helpline for duration of policy Policy still valid if tenants change (subject to referencing and £20 admin fee) Requirements *Each named tenant must have passed OpenRent’s Comprehensive referencing within the last three months. This should be done before applying for RGI. You can order an OpenRent Comprehensive Reference online for £20. If the referencing passes, you can go onto purchasing the RGI policy online.	Price No excess fees £199Inc IPT	More details *Order OpenRent’s Comprehensive referencing first if required.
Supplier	Rating 4.9 TrustPilot Reviews	Term 12 months	Details Included 100% of rental income if the tenant fails to pay Up to £50,000 Legal costs coverage 50% of rent paid for a further three months post eviction New or Existing tenancies without any no-claims penalty period 24/7 legal helpline Requirements Each named tenant must have passed a LegalforLandlords Smart or Complete or an approved full reference from another supplier. This should be done before applying for RGI.	Price No excess fees £235Inc IPT	More details

Please note, I try my best to keep the information of each service up-to-date, but you should read the T&C's from their website for the most up-to-date and accurate information.

Legal & Rent Recovery Service

Since we’re on the topic of “loss of rent” cover, I’m presuming there will be many landlords reading this that are currently dealing with dreaded rent arrears.

Been there, done it, and I know there’s absolutely nothing I can say to make you feel better (because I know how gut-wrenching and hopeless the situation can feel like). But I will say that it will end and you will recover from it!

To help you along the process, maybe you can benefit from LegalforLandlords (one of the UK’s leading landlord legal services) free “case review”, where they’ll be able to give you professional advice on how to best manage your situation.

LegalforLandlords specialise in dealing with problematic tenants, tenant evictions and rent recovery.

To book a free 15-minute consultation , click on the “Book Free Case Review” button below. There’s absolutely no obligations to use any of their paid legal services.

Free Service	Rating	Price	Notes
Landlord Legal Service	Rating 4.9 TrustPilot Reviews	Price Free	Notes PIP landlords can access key services FREE of CHARGE or at special discounted rates. FREE legal advice service. Pre-court-action letters from only £29 + VAT. Legal services which can help you avoid the expense of solicitors' fees. *Make sure you quote exclusive promo code to qualify for free advice and special rates: PIPLANDLORD	Visit website *Call for Free Advice on: 0333 240 8255 *Email Support *Book FREE Case Review

Right, well I hope that clears things up for you.

Landlord out xoxo