Could You Stand to Lose Over £20,000? Why Rent Protection Insurance Matters
Most landlords take out buildings insurance without a second thought. Far fewer think seriously about what happens if their tenant simply stops paying rent.
It is the one scenario that keeps landlords awake at night, and it is also the one that is most straightforwardly insurable. Here is what the numbers actually look like, and what cover is available.
Could You Stand to Lose Over £20,000? Why Rent Protection Insurance Matters
Most landlords take out buildings insurance without a second thought. Far fewer think seriously about what happens if their tenant simply stops paying rent. It is the one scenario that keeps landlords awake at night, and it is also the one that is most straightforwardly insurable. Here is what the numbers actually look like, and what cover is available.
The Renters' Rights Act has made this more important, not less
The Renters' Rights Act 2025 received Royal Assent on 27 October 2025 and its main provisions came into force on 1 May 2026. The single most significant change for landlords is the abolition of Section 21 no-fault evictions. From 1 May 2026, landlords can no longer serve a Section 21 notice to end a tenancy without giving a reason. All evictions must now be pursued through Section 8 grounds, which requires demonstrating a specific legal reason for possession through the courts.
The practical consequence is that the eviction process has become more complex, more expensive, and in many cases longer. Court backlogs in the possession system were well-documented throughout 2025 before the Act even came into force. Ministry of Justice data showed median claim-to-repossession timelines already sitting at 27 weeks for standard claims before May 2026. Under the new Section 8 process, contested cases are widely expected to take longer. The average 15-month eviction timeline on which the £20,000 loss figure is based was calculated before these changes came into effect. For landlords dealing with rent arrears cases from May 2026 onwards, that timeline is unlikely to shorten.
Rent protection insurance does not change the law. But it does mean that throughout whatever process you need to go through, your rental income is covered. The legal expenses element of the cover is equally relevant; Section 8 proceedings are more involved than a Section 21 accelerated possession claim, and having £100,000 of aggregate legal expenses cover means you are not making decisions about whether to pursue a legitimate claim based on what you can afford to spend.
The numbers behind a problem tenancy
Rent arrears are not a rare edge case. They happen to experienced landlords with thoroughly referenced tenants, in good properties in good areas. And when they do, the financial exposure adds up quickly.
Average rent in the UK: £1,223 per month
Average length of an eviction: 15 months
Average cost of the eviction process: £2,500
Plus: damages and repairs before re-let
Total potential loss: over £20,000
That £20,000 figure is not a worst-case scenario. It is an average, based on real eviction timelines in England. The court process for a contested eviction routinely takes between 12 and 18 months from the first missed payment to vacant possession. During that entire period, many landlords receive nothing in rent while their mortgage, insurance, and maintenance costs continue unchanged.
For a landlord with a property renting at £1,200 per month, 15 months of arrears is £18,000 before legal fees and any damage costs are added. At Warrington and WA3 rents, which consistently sit above the national average, the exposure is higher still.
What Rent and Legal Protection Insurance covers
Courtyard Homes offer Rent and Legal Protection Insurance designed specifically around the realities of what landlords face. The cover is straightforward and the key features are worth understanding clearly.
✓ Rent paid until vacant possession, meaning the insurance pays your rent for the full period it takes to regain possession of the property, not just a fixed number of months.
✓ 75% of rent covered for up to 3 months after vacant possession, protecting your income during the void period while you find a new tenant.
✓ Covers rental payments up to £5,000 per month, which comfortably covers the range of properties managed by Courtyard Homes across the local area.
✓ £100,000 aggregate cover for rent arrears and legal expenses combined, giving you the resource to pursue the legal process without worrying about the cost of solicitors and court fees.
✓ Existing tenancy policies available on managed properties: you do not need a new tenancy to take out cover.
Is this relevant to you?
If you own a rental property and you do not have rent protection in place, the honest question is: could you absorb 15 months of missed rent without it affecting your financial position? For most landlords, the answer is no. The mortgage does not pause, the insurance does not pause, and the legal process does not move quickly enough to prevent serious financial pressure in the meantime.
This is not a product aimed at landlords who expect problems. It is insurance in the proper sense: protection against a financial event that is unlikely but severe if it happens. The same way you insure a property against flood damage without expecting to flood, rent protection covers you against an eviction you hope never happens but cannot afford to absorb if it does.
To find out more about Rent and Legal Protection Insurance for your property, call us on 01925 767000 or visit courtyardhomes.co.uk. We manage properties across Culcheth, Lowton, and Birchwood and are happy to talk through whether this cover is right for you.
