Landlord Rent Guarantee Insurance (RGI) Guide

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Landlord Rent Guarantee Insurance (RGI) can be a life-saver for landlords that end up with tenants that fall into rent arrears. Unfortunately, a terribly common scenario these days.

One of the biggest problems of being a landlord is that it’s virtually impossible to find a tenant that is guaranteed to always pay rent on time every month.

Even tenants with the best intentions can experience a change in circumstances (often through no fault of their own), which results in rent arrears. That’s when RGI can be so incredibly useful and important, and why so many landlords consider it an essential insurance policy.

So, should you get Landlord Rent Guarantee Insurance (RGI)?

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What is Landlord Rent Guarantee Insurance (RGI)?

Rent Guarantee Insurance (RGI) protects landlords against loss of rent. It’s also known as Legal Expenses & Rent Guarantee Insurance (LERG)

The insurance policy is most commonly relied upon when tenants fall into arrears and are unable to pay rent, or simply refuse to pay rent (for whatever reason). If that happens, you can reclaim the money through the insurance company (or at least a percentage of it, depending on the terms of your policy).

Most policies also provide legal expense coverage. For example, if you’re dealing with a tenant that falls into arrears and refuses to vacate, legal expenses to evict the tenant incur, especially if the matter escalates to court and bailiffs are required.

The extent of how much a policy will cover will naturally depend on the type of policy you acquire. However, the following is generally included with most RGI policies:

  • Rental payment cover (minus an excess fee, like most claims)
  • 50% of the rent paid, for up to 3 months after vacant possession has been obtained, whilst you find a new tenant
  • Legal cover for eviction costs

It’s easy to understand why this type insurance policy can be incredibly useful and reassuring for landlords. One of the biggest and stressful problems landlords face is rent arrears, particularly if the landlord is relying on the rental income to make mortgage payments (which most are). Knowing the rent will also be covered can alleviate a lot of the stresses in landlord life.

Please note, if you have some form of landlord insurance policy, while it may not specifically be for rent protection, it may still come with some form of rent loss insurance e.g. I have a landlord building insurance policy which also covers 20% of any rental loss. So before getting a separate RGI policy, contact your existing insurer and find out if you’re covered for any rental loss. If you’re not covered, or have a capped amount of coverage (e.g. 20%), you may be able to pay a little extra to get full RGI coverage, like an upgrade package. Upgrading with your existing insurer may work out cheaper than getting completely separate policies with different insurers.

Do I need Landlord Rent Guarantee Insurance?

To clarify, no type of landlord insurance is currently a landlord legal requirement for UK landlords in England or Wales, including Rent Guarantee Insurance (RGI) and Landlord Building Insurance (although you’d be stupid not to have building insurance, that’s the only type of landlord insurance I consider to be absolutely necessary).

RGI is purely for pleasure. I mean that in a literal sense. As said, the policy can make landlord life so much more pleasurable. So, allow me to explain when rent guarantee insurance (RGI) is most effective and useful for landlords…

  • New tenants
    One of the biggest concerns for landlords with new tenants is that they don’t really know how reliable they’ll be until they’ve proven their reliability, and that can take months. In the meantime, we kind of just hope and pray that we did a thorough job referencing them properly, minimising our risks.

    Tenant referencing is crucial and it’s one of the best ways to separate the wheat from the chaff, but in reality, even the seemingly best tenants can result in terrible tenants. And moreover, circumstances can change over night for even the best of tenants- that’s something referencing can’t do, predict the future.

    I’ve personally had problems with working professionals that had mouth-watering financial references. Point being, referencing will only give you part of the current picture, and not the outcome.

    So it’s always useful to have RGI for all NEW tenants, despite how appealing their references are. Once you’ve built a good working relationship with the tenant, you can always resist from renewing the policy once it expires. However, many landlords keep renewing the policy for extra peace of mind, because anything can happen in this turbulent economy. But the most effective time to get a policy- if you’re ever going to get one – is when you’re starting a new tenancy with a new tenant.

  • If you significantly rely on rent to make mortgage payments
    In an ideal world ALL landlords will have a sensible emergency contingency put aside, so if shit hits the fan there’s enough to cover the costs. However, in the real world, many landlords aren’t that sensible- they rely on the monthly rental income to cover all their monthly expenses, and without it they find themselves drowning. Some landlords are a little more sensible, and they can survive for a month or two before they start feeling the pinch.

    The problem is, when a tenant falls into arrears, rent payments usually come to an immediate halt for several months, especially if it’s a particularly toxic situation where court action is looming.

    If you’re one of those landlords that heavily rely on mortgage payments to stay afloat, RGI would be a very wise option for you.

  • Expecting turbulent times
    Sometimes, if you’re lucky, your tenant will provide you with notification if they’re experiencing financial difficulties, or may experience difficulties in the near future due to work-related uncertainties. So you’ve been warned. It may even be the case that you simply suspect the tenant is experiencing difficulties due to unusual payment patterns e.g. the tenant might pay rent 1 week late one month.

    In those circumstances, it might be best to get a RGI policy and cover yourself… just in case.

  • If you simply don’t want to worry
    As said, RGI can alleviate a lot of stress, because you don’t have so much about rent. If you’re willing to pay a premium for that extra reassurance, despite the fact you may have wonderful tenants- but understand ‘anything can happen’- then RGI might just be the sensible option for you!
  • DSS tenants
    Rightly or wrongly so, DSS/DWP tenants are generally seen as high-risk compared to any other type of tenant. Statistically speaking, they are more likely to fall into arrears, so RGI cover could be extremely useful in this situation.

    Be warned though, there are very few insurers that will provide RGI cover for DSS tenants, and they’re becoming sparser by the day, because of the added risk and likelihood of rent arrears. However, some companies do provide cover, but with a noticeable premium. Much like how most motor insurance companies put a premium on insuring young male drivers because they’re more likely to have an accident and claim.

    Personally, in this situation, I believe the premium is usually worth paying for (if you can get it, that is).

From my experience, most landlords don’t get RGI, and it’s usually because of the following reasons:

  • They can’t get covered. Be warned, some insurers will NOT offer you cover simply because you don’t meet their requirements e.g. If you haven’t conducted efficient tenant referencing and credit checks.
  • They don’t want to pay extra for it
  • They don’t know about the policy
  • They’re willing to take a chance without
  • They have good tenants

But on the other hand, I know many landlords that do (and an increasing amount of landlords are catching on), and they thoroughly endorse the policy because it takes stress away. I guess it boils down to the individual landlord and how safe/protected they want to feel. Much like how some home-owners don’t have burglar alarms, while others don’t feel safe without one.

Assess your needs, base your decision on your circumstances and do what makes you feel most comfortable.

The time I made a an Insurance claim for Rent Arrears

Okay, so I just covered when and why RGI can be so utterly useful, so perhaps the next and most logical thing to discuss is the time when RGI proved to be invaluable for me. Or at least, worth £900.

Yes, I have made a claim before so I quickly want to discuss the process with you, so you get a feel for how it typically works.

I had to evict a tenant after she fell into arrears.

God, I still despise her to this day. She was a real nasty piece of work. But I digress.

She defaulted on 2 months worth of rent, which cost me a little over £1.5k. That’s a lot of money; more than I was willing to part with.


If you’re interested, you can read about the gory details in the following blog entry, I’m Evicting My Tenant.

Fortunately, I had taken out a RGI policy with a company called Homelet.

Once my tenant fell into arrears, I notified them of my dilemma, which resulted in filling a claim, which entailed specifying all the details.

Approximately 3-4 weeks later I received a cheque for just over £900 from Homelet. So what happened to the rest of the £600?

Good question! Just like some car insurance policies, when you make a claim you may have to pay an excess fee. Mine was a whooping £600. Of course, you can find policies with smaller or even nil excess fees. Admittedly, I was never aware of that at the time. Lesson learned!. I always get policies with little to no excess fees now. I actually do the same with my car insurance.

Excess fees, something for you to be aware of, for sure.

In any case, £900 was much better than losing the whole lot.

Do I qualify for RGI? Can any Landlord get Rent Guarantee Insurance?

There are usually a few requirements that must be met in order to be eligible for RGI:

  • A written tenancy agreement.
  • Tenants must have passed tenant referencing (e.g. no adverse credit). If a tenant fails referencing, then RGI may still be available if they can provide a qualified guarantor.

On a side note, if you’re interested in RGI (which I’m guessing you are, since you’re here), I recommend looking into the requirements of your preferred RGI provider before finding new tenants, because some providers will have specific requirements in regards to the type of referencing you conduct.

How much does Landlord Rent Guarantee Insurance cost?

I’m assuming this will be the decision maker. It’s always about the money, right?

Like all insurance policies, RGI will vary on the amount of cover you require, and in this specific case, the individual circumstances of your tenancy. However, I don’t want to walk away without giving you a ballpark figure, so let me give you an example of how much I paid, along with the circumstances of my policy.

I paid approximately £110 for a 12 months RGI policy, which covered a 2 bedroom house (I don’t think that’s actually relevant), occupied by a single working parent. In the grand scheme of things, it’s relatively inexpensive, especially when you consider what you get in return.

Needless to say, it’s well worth shopping around for the best deals; it’s becoming an extremely competitive market. A good starting point might be the list of insurers lower down this page. Coming soon!

Landlord Rent Guarantee Insurance (RGI) Companies

By all means this isn’t a complete list of companies that offer RGI to landlords, however, they are highly rated and reputable suppliers.

Note, there are various packages available by each provider, so I’ve only provided details of similar products from each provider for comparison purposes.

Landlord Rent Guarantee Insurance (RGI) Companies
SupplierRatingPrice fromDetails


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*Compare Quotes

  • *Unlike the other options, Simply Business compares quotes from the leading insurance brands, so you’re more likely to get the most competitive price.
  • Covers Legal Expenses & Rent Guarantee
  • Legal costs (up to £50,000)
  • Options for 6 or 12 months’ cover
  • Covers up to a maximum of £2,500 per month
Get Quotes


TrustPilot Reviews
*£235**Inc IPT

  • Landlords Rent and Legal Protection
  • 75% of Rent covered for up to 8 months
  • Options for 6 or 12 months’ cover (*£235 is for 12 months cover, *£210 for 6 months)
  • Maximum of £15,000 Rent coverage
  • Maximum of £25,000 Legal costs coverage
  • 1 months rent excess to pay
  • Payable by monthly installments
  • Policies available that accept Housing Benefit tenants

**IPT is Insurance Premium Tax and is charged at 12%.

*Use exclusive discount code PIPLANDLORD for special rates.

Call for more info: 0344 567 4001

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 information.

Is this possibly the best protection for Landlords against Rent Arrears?

I was recently introduced to a ‘sort of’ RGI product that’s recently been launched by the online letting agent (an awesome little company I’ve been working with for several years).

Actually, it’s not really an RGI product at all, but more so a complete landlord rent collection solution which includes a ‘type of’ RGI policy (among a butt-load of other gadgets).

I say a “type of” RGI, because it’s a little bit different to how the conventional RGI policy works. Normally, you have to make a claim if your tenant falls into arrears, and then go through a process which results in a payout, which hopefully isn’t too far down the line (if you have a valid case, of course). Just like any normal insurance claim.

But with the RGI policy offered by LettingAProperty you benefit from a “rent on time” policy, which basically means you get paid rent on time even if your tenant doesn’t pay! You don’t have to go through any claims process, you simply just get paid on the date you’re contracted to get paid. See the difference?

Yes, it’s more expensive than regular RGI policies, but you’re getting so much more. Anyways, I think it’s a pretty awesome product, so I thought I’d throw some light on it, because it’s kind of a hidden gem…

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ProviderRatingContractNotes / IncludesPrice

Quick update: LettingAProperty stumbled across this article and threw an exclusive £40 discount my/our way! Enjoy.

Please note, I try my best to keep the information of each agent up-to-date, but you should read the T&C’s from the agents’ website for the most up-to-date information.

If you know of any other companies that aren’t currently listed (but should be), please contact me or leave a comment below.

Word of warning: inform your insurer of any changes in circumstance

Just a quick final warning before I drive off into the sunset.

Insurers are notorious for finding ways to refuse claims. Needless to say, if they can find a reason not to pay out – no matter how trivial – they will! So it’s definitely in your best interest not to give them one.

If there’s ever a change in circumstance regarding your tenant or the tenancy itself (e.g. if he becomes unemployed, or if you change tenants altogether), inform your insurer immediately so they can update your record and make any appropriate changes to your policy.

If you don’t update your policy by informing your insurer, or at least enquiry whether you need to or not, you may find yourself with an invalid policy.

Brother, you’ve been warned!

All-in-all, RGI is a wonderful product.

Top tips for buying your Landlord Rent Guarantee Insurance

  • Read and understand all the terms and conditions, particularly what you can or can’t claim for, in your RGI policy before making a purchase. If there are any details you are unsure about, ask your policy provider for clarity.
  • Check if your RGI policy requires you to pay an excess fee when making a claim, and if they do, check how much it is. RGI policies that are subject to excess fees usually have a lower premium (just like with regular car insurance).
  • Get written confirmation of any discussed details that are not specifically written in your policy, which you feel could come under scrutiny and impact future claims.
  • If any circumstances change to your tenancy through an existing policy (e.g. you change tenants or your tenant’s circumstances change), you should make immediate contact with your insurer so they can update their records. Otherwise they may refuse any future claims.

20 Join the Conversation...

Guest Avatar
cassie 26th January, 2011 @ 17:14

Hiya all. Im currently going through a credit check to see if i can rent the house i applied for. thing is i have checked my online credit check and it came back with the score of 580 which i have found out is poor, would this stop me from renting as im thinkin more than likely any help appreciated

Guest Avatar
amy dobinson 4th March, 2012 @ 10:54

i am looking at a property today to rent for myself and daughter, i havent got a guarantor as dont have any family, i am going to approach the landlord with the insurance idea and the idea of doubling the deposit required, but when i pay the holding fee today for credit check, i know i have a pretty low credit scoring, will that affect me getting the house i want!!

Guest Avatar
Jeremy 4th March, 2012 @ 14:52

Hello Amy,

The insurance is something the landlord takes out behind the scenes, you can't offer to take it out for him.

Also, if you pay more than 2x deposit than monthly rent then you get various rights to sub-let and a canny landlord won't take a high deposit.

If you trying to prove to a landlord you've got the cash despite a low credit score, then you could offer to pay 2 months in advance.

Hope this helps you.

Guest Avatar
Mr X 4th March, 2012 @ 15:29

Hi Amy

Jeremy offers a good suggestion which is definitely worth a try, however I think you will be very lucky to find a landlord that will take you on. Low credit score with no guarantor means you will most likely fail the referencing, so the landlord will have to take you on based on trust.

Your landlord may not even be eligible for Rent guarantee insurance as the insurance companies have a tenant criteria.

To add on Jeremy's response though, explain to the landlord why you have bad credit, and if you do go ahead with referencing, and all other areas are good, then you may be in with a chance.

Guest Avatar
claire murray 7th June, 2012 @ 08:45

I have approached a landlord with the idea of paying for the landlord rent guarantee and expenses insurance as we are struggling to find a guarantor. I own my own business and my partner has a full time permanant job so jointly we earn over 45k a year our problem is i have not been trading for three years we were asked if we could pay 6 months in advance is this a viable option ?
Is there any other advice you could give to help us secure a tennancy x

Guest Avatar
Elaine 22nd June, 2012 @ 17:13

Hi I have owned my own business since 2008 and today have found I have been declined for a property. Number 1 because my business has gone into a loss due to ecomic climate and number 2: I to have No guarntor. I have set up an account with credit expert to see my credit rating. I think its disgusting someone self employed has less rights than someone employed when both could lose their jobs at the end of the day! I have rented for over 5 years now and this is the first time I have been rejected.

Guest Avatar
Jeremy 24th June, 2012 @ 20:37

Hello Elaine,

I'm sorry if this sounds unsympathetic, but: Renting a house is not a right. It's a commercial transaction. In the same way I'm sure your business does not extend credit without doing some kind of check to make sure you've got a chance of getting paid.

So if it's a case of making yourself appear commercialy attractive, owning a loss making business and having no-one able to be your guarantor does not put you high up the list of great tenants, from a financial perspective.

It's just a business fact, as someone who runs their own business should understand.

Guest Avatar
Jeremy 26th June, 2012 @ 00:50

Hello claire murray

I think the idea of paying for rent guarantee insuance is a dead duck. Insurers have acceptability criteria. If you meet it, the price is not that big. If you don't meet the criteria, you get a "no quote". You paying for it really will make no difference.

Offering to pay six month up-front is a very powerful statement about your earninga and cash flow management. My only concern would be if you end up with a "bad landlord" who spends the money up-front and then won't help you with maintenance issues. Maybe you could protect yourself by putting it into an Escrow account?

Guest Avatar
Linsdeyloo 30th October, 2012 @ 11:43

Hi there,

Me & my partner are wanting to rent a property. This property needs a guarantor to sign. Unfortunately we don't have a person that will be a guarantor!
Now were getting down about it because we feel were never going to be able to rent.
The only thing is, is the house we want to apply for is with a lettings agent. Obviously easier for them to do it than the landlord. So how could we go about applying without a guarantor? Please help us!!

Guest Avatar
Kakama 16th August, 2013 @ 21:41

My estate agent was managing my property for three months, we did not received any rent even though that the agent took RENT GARNTEE. He managed to evite the tenants, but no rents either from deposit or the rent garantee scheme.
What can we do as we are four months now in mortgage arrears.
Can some one, please help

Guest Avatar
James Halinson 15th January, 2014 @ 11:17

Homelet do employer and credit checks on the tenant and charge handsomely for this.
Nothing that a good landlord can't do themselves. Better to ask for 2 months deposit instead.

Guest Avatar
Tracy Russell 28th January, 2014 @ 20:04

My son is at Uni and is looking to rent a place with friends for their second year. The things is he needs a guarantor who owns there own home and I do not. The 3 people he is sharing with are ok and have got their garauntor. I am worried if he does't get one he may have to leave Uni. Any ideas?

Guest Avatar
James Halinson 30th January, 2014 @ 10:21

Do you have a friend/relative who owns their own home?

Guest Avatar
Megan 3rd October, 2014 @ 08:44

I have a good credit score, but I'm having no luck finding a guarantor, I don't have any family.
I'm looking for a room, studio or one bed in Brighton that would be willing to take HB.
I am signed off for life due to health reasons. Without a guarantor, I'm not getting anywhere. Can I take out this insurance and use it in lieu of guarantor?
Further difficulty arises from the housing benefit side. I'm not in good health but people see benefits as - low life that doesn't want to work.
Anybody have any advice?
Please help 07553515296
Kind regards

Guest Avatar
Joseph 4th June, 2015 @ 22:10

This whole rent Guarantee Insurance is broken. they pay their poor property agency substantial reference fees and permission to leave a footprint on one's credit file, to then find themselves subject to a financial data fed anomaly. There is no reasoning with the property agency, to question the validity of 'real to life' financial circumstances, and on a personal note, in the real world, there is a feel good factor about the economic recovery, let's face it guarantor's are all about trust & relationship, that's a rare quality to have, maybe one without the other. 'Who wants to be a guarantor?' but no all of this means nothing to a computer, and agencies/landlords trust in their computer data systems, without consulting a real person..oh but they would like 6 months of hard cash in advance to solve the problem...sad really for those who give good 'would be' tenants a bad name.

Guest Avatar
Ann marie 15th July, 2015 @ 15:49

Hi I recently applied for a property through an estate agent and the checks they did came bk as wanting a guarantor I provided them with one and now they have come back and said they can't offer me the house because the landlords insurance will not accept me because I have a guarantor on my application can having a guarantor affect a landlords insurance because as far as I can see it's more of a good thing than it is bad ??

Guest Avatar
Lee Jones 3rd August, 2016 @ 16:01

I think you might want to re-visit your summary of terms for RentGuard Insurance and Total Landlord Insurance. For example, RGI does have an excess, of one month of rental income, and the total payable is capped at £18k, while TLI's excess is only half a month and the cap is £16k - so they are not as far apart as your summary suggests. I got a quotation for £98.55, not a huge saving but a little.

The Landlord Avatar
The Landlord 3rd August, 2016 @ 20:58

On the RGI website it says the following:

Legal Expenses & Rent Guarantee – No Excess (12 Months)
Comprehensive Legal expenses and Rent Guarantee product covering the landlords costs for disputes between themselves and their tenants up to a maximum of £25,000 per claim, with rent guarantee insurance up to a maximum of £3,000 per month. This is a 12 month policy which carries no excess and costs just £129.95 per annum.

Have I misunderstood something (it's highly probable)?

Guest Avatar
carl mauri 28th September, 2016 @ 04:16

I am currently renting through a property maintenance company, landlord has taken out an rgi , our circumstances have changed recently & fell behind with rent approx. 1 &1/2 months rent which was paid in full when I told them it was going to be paid.
pmc issued a section 8 followed by s21 .spoke to owner & he hasn't a problem withdrawing s21 but has been told by pmc that this would invalidate insurance that he holds ? is this true & should they have issued s8 in first instance ? made pmc aware of the situation prior to rent arrears accruing !
any suggestions as to what to do next as we want to remain tenants within this property
thanks in advance

Guest Avatar
Teg 8th November, 2021 @ 20:31

Hi,I have to leave my private rented house as the landlord is selling.Im on DSS due to ill healt I live with my 18 year old daughter who helps me as slightly disable.We cannot get another private rented as no one will give us a chance.We been told by my local council we will most probably end up in different hostels and may not be housed together as she's a student and over 18,how can I improve our chances of being housed together.

















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