Huge Increase to rent guarantee insurance due to Covid 19

Covid 19 related increases to Legal and Rent Guarantee Insurance

Hi Everyone,

I had my landlords insurance renewal through today for my 2 apartments and it had increased by over £250 - the insurance company have been able to shave some money off the contents renewal - but the bulk of the increase (not surprisingly) is down to the rent guarantee and legal cover element. I suppose I shouldn’t be surprised that insurance companies have significantly increased their premiums to mitigate the increased risk - but was just wondering whether others out there have seen the same price hikes?

Many thanks


1 Like

Hi Bev,

Insurance Companies will always find excuses to increase prices no matter what happens in this world, good or bad. While they may have some reservation regarding tenants’ not being able to pay their rent, they will always try to find a way to wiggle out of paying. (e.q travel insurance due to Covid).

Let’s hope the extra money you paid really does cover your missed rent and not what recently happened when Rentguard tried to mediate/negotiate between the Landlord and tenant “Missed rent, rentguard insurance and mediator

Which insurance company you guys use? I am with Directline, received email saying their rent guarantee would not cover loss caused by covid19. Totally rubbish I will renew soon, just thinking which one to go to? Thanks

I am with ABIB (Alan Boswell Insurance Brokers) - the rent guarantee insurance WILL cover loss of rent due to COVID. I was with Direct Line a few years but left them as they bumped the price up by 5 times as they clearly didn’t want to ensure properties near water anymore (mine being on a docks development and canal side). The rent guarantee cover is higher though - depends how high risk your tenants are, whilst the increase is frustrating it isn’t anywhere near the cost of losing rent.

Yep, same here. Premium has gone up by almost triple and is non-negotiable. Frustrating but like Beverley said, isn’t anywhere near the cost of losing rent.

I agree with Beverley I also am with Alan Boswell. I setup policy in Nov 2020 and purchased rent guarantee insurance along with it, couldn’t find any other provider who had not suspended new sales. And it was a very good quote.