Rent guarantee insurance for landlords is for the protection of your rental income. It covers any rent arrears owed under the tenancy agreement by the tenant of your property. An example of this happening could be that your tenant may lose their job and be unable to pay the rent you are due.
The level of cover offered in most cases is up to £1,500 per month for a maximum of 6 months but this can vary depending on the policy, cover and claim in question so please check this carefully.
A Rent Guarantee Insurance policy quite simply is in place to provide monthly benefit in respect of rent arrears. Generally, once the compensation has reached its limit, the cover will cease and a new policy would need to be affected for any future tenants. It is common for Rent Guarantee Insurance to be taken out alongside a Legal Expenses Insurance policy.