How much rent guarantee insurance costs depends on four variables, and knowing them lets a landlord compare quotes properly rather than by headline price. It is usually quoted either as a fixed annual amount per tenancy or as a percentage of the annual rent, and the two forms are not directly comparable.
The rent and the cover period
A higher rent means a larger monthly payment if the policy responds, so the premium scales with it. Twelve months of cover costs more than six, and the longer period is usually the one worth having, because the shorter one can expire before possession is recovered on a contested case.
The excess and the legal expenses
The excess is expressed as time, commonly the first month of arrears, and a longer excess period lowers the premium. Whether possession legal costs are included changes both price and value substantially, and a quote without them is not comparable to one with them.
Where the referencing sits
Policies sold through a letting agent usually include the referencing in the service, which is part of what the price covers. Bought directly, the referencing is yours to run to the insurer's standard. The direct route is cheaper and only actually cheaper if you will do the referencing properly.
Questions people ask about how much is rent guarantee insurance
How is it priced?
Either as a fixed annual amount per tenancy or as a percentage of the annual rent. The two forms are not directly comparable, so convert one to the other before deciding.
Does a longer cover period cost much more?
Usually a modest amount, and it is often the better buy because a shorter period can expire before a contested possession completes.
Why is the agent's version dearer?
It usually includes the referencing in the service, which is the condition most often failed when landlords run it themselves.