The Intermediary –- June 2026 - Flipbook - Page 87
P RO T E C T I O N
Opinion
Rent guarantee
insurance has
become essential
T
he Renters’ Rights
Act 2025 has brought
significant changes
to the UK rental
market, reshaping the
relationship between
landlords and tenants, and increasing
the responsibilities placed upon
property owners.
While the legislation aims to
provide greater security and fairness
for tenants, it has also introduced
additional financial risks for
landlords, particularly when it comes
to recovering possession of properties
and dealing with rent arrears.
A changing landscape
Among the most notable changes
are the abolition of Section 21 ‘no
fault’ evictions, stronger tenant
protections, and stricter procedures
surrounding possession claims. While
these reforms provide tenants with
greater stability, they can also make
it more difficult and time-consuming
for landlords to regain possession
of a property when tenants fall into
arrears or breach tenancy agreements.
In many cases, landlords may now
face extended periods without rental
income while legal processes are
ongoing. For landlords with buy-tolet (BTL) mortgages, this creates a
serious financial concern. Mortgage
repayments, maintenance costs,
insurance premiums, and other
property expenses continue regardless
of whether rent is being paid.
Even a few months of missed rental
income can place significant strain on
a landlord’s finances.
The importance of insurance
Landlord Rent Guarantee Insurance is
designed to protect landlords against
loss of rental income when tenants
fail to pay rent. Policies typically cover
monthly rental payments up to £2,500
per calendar month for a minimum
ideally of at least 12 to 18 months,
and oen include legal expenses up
to £100,000 to assist with eviction
proceedings and possession claims.
In the post-Renters’ Rights Act
environment, this protection is more
valuable than ever.
With possession proceedings
potentially taking longer due to
increased tenant protections and
court pressures, landlords may face
prolonged periods of arrears before
regaining control of their property.
Rent Guarantee Insurance provides
a financial safety net, helping
landlords maintain mortgage
payments and other commitments
while the issue is resolved.
Importantly, many policies also
provide access to specialist legal
support, ensuring landlords receive
guidance throughout what can oen
be a complicated and stressful process.
Raising awareness
As trusted advisers, brokers are in a
unique position to inform landlords
not only about mortgage suitability,
but also about protecting the longterm viability of their investment.
A BTL property is an incomegenerating asset. If that income stops,
the landlord’s ability to meet mortgage
repayments may quickly become
compromised. By highlighting Rent
Guarantee Insurance, brokers can
help clients understand:
The increased risks created by the
Renters’ Rights Act 2025
The potential length and cost of
possession proceedings
The financial impact of rental
arrears
The importance of maintaining
consistent cashflow
The value of legal expenses cover
STEPHANIE DUNKLEY
is development director
at Safe&Secure
These conversations not
only protect landlords but also
strengthen the broker-client
relationship by demonstrating a
broader understanding of property
investment risks.
Many landlords remain unaware
that standard landlord insurance
policies do not automatically include
rent guarantee protection. Without
guidance from brokers and insurance
advisers, landlords may incorrectly
assume they are fully protected when
they are not.
No longer optional
The private rented sector is evolving
rapidly, and landlords must adapt to a
more regulated environment. While
most tenancies run smoothly, the
financial consequences of even one
problematic tenancy can now be far
more severe than in previous years.
Landlord Rent Guarantee Insurance
is no longer simply an optional extra.
It is becoming an essential component
of responsible property investment
and risk management.
For mortgage brokers, ensuring
landlord clients understand this
protection is available is not only good
practice but also an important part of
helping clients maintain sustainable
and financially secure property
portfolios in the years ahead.
Safe and Secure Home Insurance
has access to both standalone Rent
Guarantee Insurance products as
well as policies that can be combined
with landlords’ buildings insurance,
helping landlords tailor protection
to suit their individual property
portfolios and requirements. ●
June 2026 | The Intermediary
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