Rent Guarantee Insurance Landlord 2025

1 Comments June 9, 2025

Why Rent Guarantee Insurance is a Landlord’s Best Defence in 2025?

Navigating the responsibilities of being a landlord is no small task. Between maintaining the property, ensuring legal compliance, and managing tenants, landlords already have a full plate. But one issue stands out as potentially the most financially damaging: unpaid rent

With new legislation, such as the Renters (Reform) Bill, reshaping the way possession is regained and disputes are handled, the need for Rent Guarantee Insurance (RGI) has never been more critical.

What is Rent Guarantee Insurance?

Rent Guarantee Insurance is a specialist insurance policy designed to protect landlords against the financial consequences of tenant rent arrears. If a tenant stops paying, the policy provides a monthly income replacement, typically for up to 12 or 15 months, depending on the policy.

Many RGI policies also include legal expenses coverage, which covers court proceedings, eviction processes, and legal representation—key features, especially as the legal route for possession becomes more regulated under Section 8.

What Does RGI Typically Cover?

While specific benefits depend on the insurer, most comprehensive Rent Guarantee Insurance policies include

🔒 Rent arrears cover (e.g., up to £2,500/month for 12–15 months)
⚖️ Legal expenses related to tenant eviction (usually up to £50,000

🧾Court fees and representation
🔁 Vacant possession cover during repossession processes
🔧 Optional cover for property damage beyond deposit amounts

🤝 Mediation services and dispute resolution in some cases

Why is RGI So Valuable in Today’s Market?

1. Section 21 is Being Abolished

The upcoming abolition of Section 21 under the Renters (Reform) Bill means landlords will no longer be able to evict tenants without stating a legal reason. This shifts the reliance to Section 8, which demands specific grounds and substantial evidence

RGI becomes indispensable by covering lost rent during lengthy possession claims, especially when delays are inevitable.

2. Court Delays Are Worsening

Eviction through legal channels can now take up to 12 months or more, especially in high-demand jurisdictions like London. RGI ensures that your income continues, even if possession is tied up in legal proceedings

3. Rising Financial Pressure on Tenants

The economic landscape is shifting, and rent increases, inflation, and employment instability mean even well-vetted tenants may default. RGI acts as a financial buffer, shielding landlords from missed rent caused by unforeseen tenant hardship

The Advantages and Limitations of RGI

✅ Benefits of RGI

Income Security: Guarantees rent continuity during arrears
Legal Protection: Covers court proceedings, legal advice, and eviction costs
Peace of Mind: Allows landlords to let properties with confidence
Faster Turnaround: Assistance with regaining possession helps landlords re-let quickly

⚠️ Points to Consider

Cost: Premiums can vary (£200 to £500/year), depending on the rent amount
Policy Caps: Most have time or value limits on payments
Conditions: Claims may be denied if referencing or legal notices are not correctly executed

Choosing the right provider and following the proper procedure is key to maximising the benefit of RGI

Why More Landlords Are Choosing RGI Through 99home?

At 99home, we advocate for smart, risk-conscious property management. Rent Guarantee Insurance is more than a precaution, it is a core component of a sound lettings strategy.

Our clients choose RGI because it

Helps cover mortgage payments even when tenants default
Eliminates financial stress during tenant disputes
Ensures quicker, supported legal processes
Reinforces long-term portfolio security

We have supported landlords who avoided losses of £15,000 to £25,000+ by having the right cover in place. In contrast, those without coverage often face devastating costs and delays.

Is It Worth the Cost?

Yes, and here’s why

A solid RGI policy costs about as much as one week’s rent per year. For that price, landlords gain protection against tens of thousands of pounds in potential losses. Think of it as an airbag for your rental income. You hope you never need it, but if the worst happens, you will be glad you have it.

RGI is No Longer Optional, It’s Essential

The rental landscape is evolving, and so are the risks. With legislative changes, court delays, and increasing arrears risk, Rent Guarantee Insurance is one of the most effective tools landlords can use to secure their financial future.

Whether you are an accidental landlord or managing a large portfolio, RGI is a sensible, strategic investment that provides the kind of protection no reference check can guarantee.