Can insurers cancel a Landlord Rent Guarantee policy? How to avoid getting voided

In this volatile private rented sector, landlords need every tool at their disposal to ensure their investment continues to provide a steady income.

Not least when many are locked into sky-high mortgage rates and market forces have bloated rental prices to such an unsustainable degree that tenant defaults are an ever-present risk.

In fact, our HomeLet Rental Index has revealed that UK renters now pay a third of their wages on rent every month.

Thankfully, there is an excellent tool for assuaging at least some of the stress and burden of mitigating non-payment issues: Landlord Rent Guarantee Insurance.

This useful form of rent protection insurance for landlords mitigates rent defaults and arrears, with monthly rental yields paid in full should your tenants fall on hard times. It also provides financial support with eviction costs and limited cover during periods of vacant possession.

An excellent, useful tool indeed. One that many landlords would struggle to live without. This begs the question, can insurers cancel a Rent Guarantee policy? The short answer is, yes, they can.

Sometimes it might be for unforeseen regulatory reasons that simply cannot be helped. However, in most cases, it will be for entirely avoidable reasons. Let’s explore them now, so you know exactly what to do to remain covered.

Yes, insurers can cancel a Landlord Rent Guarantee Policy under certain circumstances. 

Typically, they will give you 14 days’ notice and you won’t be eligible for a refund outside the 14-day cooling-off period. The specific conditions under which a policy may be cancelled can vary depending on the terms and conditions outlined in the insurance contract and applicable laws and regulations. 

Some common reasons for cancellation include the following:

If you, as the landlord, fail to pay the required insurance premiums on time, your insurer may cancel the policy.

If you provide inaccurate or false information during the application process, which is considered material to the insurance coverage, this is another red flag that could prompt your insurer to terminate your policy.

If you violate any of the terms and conditions specified in the insurance policy, such as failing to maintain the property adequately or engaging in prohibited activities, this could also lead to the cancellation of your policy. 

If there are significant changes in the risk profile of the insured property or your circumstances, such as a substantial increase in the number of claims filed or a change in ownership, the insurer may cancel.

If your insurer cancels your Landlord Rent Guarantee Policy, it's crucial to take prompt action.

Carefully review the cancellation notice provided by your insurer to understand the reason for the cancellation and any specific instructions or deadlines provided.

Reach out to them to discuss the cancellation and seek clarification on the reasons behind it. Ask if there are any options available to remedy the situation or if there is a possibility of reinstating the policy.

If the cancellation was due to a specific issue, such as non-payment of premiums or a breach of policy conditions, take steps to address the underlying problem swiftly.

This might involve paying outstanding premiums, rectifying any violations of the policy terms, or making necessary improvements to the property as directed.

While addressing the cancellation and seeking alternative cover if necessary, take steps to mitigate ongoing risks associated with potential rental defaults.

This may include implementing stricter tenant screening processes, enhancing property maintenance, or exploring other risk management strategies to protect your rental income.

It's essential to carefully review the terms and conditions of your Landlord Rent Guarantee policy to understand the circumstances under which a cancellation might occur.

Ultimately, maintaining open communication with your insurer and abiding by all the necessary policy requirements can help to reduce the risk of cancellation. 

If a policy is cancelled, you may have the option to seek alternative insurance options or address any underlying issues to prevent future cancellations.

By taking proactive steps and seeking assistance when needed, you can effectively navigate the challenges posed by the cancellation of a Landlord Rent Guarantee policy.

Whether you’re a first-time landlord taking your first steps into the rental market or a seasoned campaigner with a flourishing portfolio, HomeLet provides Landlord Rent Guarantee Insurance tailored to your exact requirements. You can purchase your policy directly from us, with no need for comparison sites or brokers.

For more information about our Landlord Rent Guarantee Insurance, contact us on 0800 035 8258 or request a callback. Our offices are open 8:30 to 17:30 Monday to Friday and 9:30 to 13:00 Saturdays.