Insurance for Landlords: What’s Covered & Where Guaranteed Rent Fits In

For landlords, protecting rental income and property conditions is essential. While landlord insurance plays a major role in safeguarding against risk, many property owners assume it covers more than it actually does. That gap between expectations and reality is often where guaranteed rent becomes a valuable solution.

What Landlord Insurance Typically Covers

Landlord insurance is designed to protect you financially against events that could damage your property or disrupt your income. Although policies vary, many include:

• Buildings and contents cover – protection if the structure or landlord-provided furnishings are damaged

• Legal expenses – support with legal action against tenants in certain situations

• Public liability cover – protection if a tenant or visitor is injured due to property faults

• Loss of rent (in limited scenarios) – usually only if the property becomes uninhabitable after an insured event like a fire or flood

These are important safeguards, but they only apply to specific situations. Many landlords are surprised to find that their policy doesn’t guarantee rental payments if their tenant stops paying.

What Insurance Often Doesn’t Cover

This is where misunderstandings happen. Common exclusions include:

• Rent arrears if the tenant refuses or cannot pay

• Void periods between tenancies

• Damage caused by tenants in some cases, unless you’ve added malicious damage cover

• Eviction delays and income loss during court proceedings

Some insurers offer rent guarantee insurance, but it is usually an optional add-on. Even then, landlords often encounter excesses, claim delays, and strict requirements that make it harder to secure reimbursement.

Where Guaranteed Rent Fits In

Instead of relying on tenants to pay on time or chasing arrears, many landlords now choose guaranteed rent for landlords, which provides a fixed, reliable rental payment every month. Instead of hoping a policy covers income disruption, landlords receive rent whether the tenant pays or not, and often even during void periods.

A guaranteed rent provider, such as Sparemove, typically:

• Pays landlords a fixed monthly rent

• Takes responsibility for finding and managing tenants

• Covers rent arrears, voids, and sometimes damage

• Handles inspections, compliance and reporting

• Provides a fully hands-off experience

The Bottom Line for Landlords

Landlord insurance is still an important layer of protection, but it doesn’t replace rental income if tenants default. Guaranteed rent fills that gap, offering stability and peace of mind in a rental market where legislation, mortgage rates, and tenant affordability are changing rapidly.

For landlords who want a predictable and passive rental experience, guaranteed rent offers something insurance alone cannot: certainty.