Tenant Reference Pass Certificate obtained 25 February. Tenant signs agreement effective from 1 March at a rental of £650 per month. Landlord collects one month’s rent in advance as well as a deposit equal to one month’s rent.


Tenant fails to pay rent on 1 April, then again on 1 May, despite best efforts of letting agent. Landlord now struggling to make mortgage payments. Claim notified to insurer on 2nd May.


Insurer appoint solicitors who begin eviction proceedings and tenant evicted 15 July, having made no further rental payments. Total legal costs are £950.

Claim paid as follows:

Legal Costs Insurance pays £950. Rent Guarantee cover pays £1,625 (for May, June and 15 days of July’s rent) April’s rent is not covered as this is excluded because it is the first payment missed and that is the excess. – Subject to the Tenancy Deposit Legislation the Landlord may be entitled to the deposit paid upfront and this covers the missed April payment, meaning the landlord is not out of pocket.