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What is Rent guarantee insurance?
Last verified 31 October 2026
Rent guarantee insurance is a policy that covers a landlord's loss of rent, usually when a tenant stops paying. It is separate from buildings and contents cover, although some landlord policies bundle the two.
Why it matters to landlords
HMRC's Property Income Manual lists loss of rent among the risks where insurance premiums are allowable, as long as the premium is paid for the purposes of the property business. That also applies to a property that is empty but held for letting. The other side matters too: money the insurer pays for lost rent counts as property business income, so it goes in your rental income for the year.
Policies differ in what they treat as a claim, how long they pay and what you must do first, so read the wording before you buy and keep the policy document with your property records. Record the premium as an expense when you pay it and any payout as income in the period you receive it. Cover does not remove the need to chase arrears quickly.
Example
Priya lets a house at £900 a month and pays £360 a year for rent guarantee cover. Her tenant stops paying for two months and the insurer pays £1,800. She records the £1,800 as rental income and the £360 premium as an allowable expense, so only the net effect of the claim changes her taxable profit.
Allowable Expenses for Landlords (2026) →