What is Loss of Rent insurance?

Loss of Rent Insurance will compensate landlords should a property become uninhabitable following an insured event, such as a fire or flood. If your property is mortgaged or the rental income is vital to your cashflow then you would be taking a great risk insuring just the building and not the rent.

Be aware that some property owner’s policies will not ask what rental cover you require as they will give a standard level of cover proportionate to the buildings sum insured.


You can normally select to cover rent for set periods of time, as below, but be careful not select too short a period or payments will cease before the property is habitable again:

In most cases Loss of Rent insurance is combined with buildings insurance. This can be a problem if you rent out a property but you are just the leaseholder and the building is insured by the freeholder. One solution is to include the cover you require on the landlord’s policy whilst also noting your interest – but this requires a cooperative freeholder and can be difficult in practice. Alternatively, Sutcliffe & Co is able to provide stand-alone Loss of Rent insurance.

Rent will not be protected if your tenant goes into liquidation and defaults on payments. Sutcliffe & Co can cover this risk with forms of Credit Insurance, which in effect guarantees your rental income. This can also be useful if you need to secure loans or as an alternative to large deposits.


If you would like assistance protecting your rent please call us on 01905 21681 or click here to send us an email