For most landlords, rent arriving on time each month is simply part of a rental investment working as it should.
At Bourne, that’s exactly what we see across the vast majority of the properties we manage. Most landlords never need to make a rent protection claim.
However, rent protection insurance is not about expecting problems. It’s about being prepared for the unexpected.
If a tenant suddenly stops paying rent due to a change in circumstances, the right cover can help protect your rental income and provide valuable peace of mind while the situation is resolved.
How Common Are Rent Arrears?
Rent arrears are not the norm, but they remain a genuine risk for landlords.
According to the latest English Housing Survey, 5% of private renters experienced rent arrears during 2024-25. At the same time, 32% of private renters reported that they found it fairly or very difficult to afford their rent.
With average private rents in England reaching £1,446 per month in June 2026, even a relatively short interruption to rental income can have a significant financial impact.
At Bourne, the overwhelming majority of our landlords receive their rent without issue. Nevertheless, effective property management is about planning ahead for situations that occur infrequently but can be costly when they do.
What Does Rent Protection Insurance Cover?
A tenant can be reliable when they move into a property and still experience circumstances that affect their ability to pay rent.
Ill health, redundancy or unexpected financial pressures can affect even the most responsible tenants.
Standard buildings and contents insurance policies do not generally cover unpaid rent. Rent protection insurance is specifically designed to protect landlords when rental payments are not received.
Depending on the policy terms, rent protection insurance can help cover lost rental income and associated legal costs while possession of the property is being recovered.
At Bourne, our rent and legal protection includes:
- 100% of the monthly rent covered until vacant possession, with no cap on the number of months covered (up to £100,000).
- 90% of the rent covered for up to six weeks after vacant possession, where the property is re-let through us.
- Legal expenses cover of up to £100,000, including legal representation and appeals.
- No excess on claims made within the first 45 days.
- Cover for certain additional tenant damage where costs exceed the deposit held.
- Cover for the difference in rent following a valid Section 13 notice, where applicable.
- Claims handled directly on your behalf, reducing administration and stress.
Cover is subject to policy wording, eligibility criteria and applicable conditions.
Why Landlords Choose Rent Protection Insurance
We do not recommend rent protection insurance because we expect a tenant to stop paying rent.
We recommend it because no one can predict the future.
Even with thorough tenant referencing, professional management and careful selection, there is always the possibility of unforeseen circumstances affecting a tenant’s ability to pay.
For landlords who rely on rental income to cover a mortgage, household costs or other financial commitments, having protection in place can provide valuable reassurance.
The reality is simple: you hope never to use it, but if you do need it, you’ll be glad it’s there.
Professional Property Management Matters
Rent protection insurance is only one part of protecting a rental investment.
Careful tenant selection, comprehensive referencing, regular communication, proactive maintenance and effective property management all help reduce the likelihood of issues developing in the first place.
If a problem does arise, acting quickly can make a significant difference.
Recent legislative changes, including the introduction of assured periodic tenancies under the Renters’ Rights Act reforms, have also increased the importance of professional advice and effective tenancy management.
For landlords, having the right systems, processes and protections in place matters more than ever.
Frequently Asked Questions About Rent Protection Insurance
Is rent protection insurance worth it for landlords?
Many landlords never need to make a claim. However, rent protection insurance can provide financial security if a tenant falls into arrears, helping to protect rental income and cover associated legal costs.
Does rent protection insurance cover legal expenses?
Many policies include legal expenses cover relating to possession proceedings and rent arrears claims. The scope of cover will depend on the individual policy wording.
Can a fully managed landlord still benefit from rent protection insurance?
Yes. Professional management helps minimise risk, but no landlord can completely eliminate the possibility of unexpected tenant circumstances affecting rent payments.
What happens if a tenant stops paying rent?
Subject to policy terms and eligibility, rent protection insurance can provide cover for lost rental income while the necessary legal process is followed to recover possession of the property.
Protect the Income Behind Your Investment
A rental property is an investment, and for many landlords, monthly rent forms an important part of the return.
Most landlords will never need to make a rent protection claim. However, insurance is rarely about expecting something to go wrong. It’s about knowing that if it does, you have protection in place.
If you’re a landlord in Surrey or Hampshire and would like to learn more about rent protection insurance, legal protection or our fully managed lettings service, our team would be happy to help.
Thinking about letting your property? Talk to Bourne about our fully managed lettings service and rent protection insurance or book your FREE complimentary, no-obligation valuation today.
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