Rent Guarantee Insurance is something that a lot of people are looking at getting when they rent their property out so that they will be more secure in the knowledge that whatever happens they will be able to get rent and won't end up out of pocket because of a tenant, for example if they were to lose their job and they were then unable to pay the rent.
This type of insurance usually has a set limit that you can claim for and with most insurers they won't cover for more than £2,500 per month (although it is only a very small fraction of houses that would have rent that was higher) and generally most will only cover up to six months of rent loss, although there are companies out there that will cover the full 12 months.
There is also generally a time limit on actually reporting the claim to the insurers, I believe that most of the insurers say that you have to report the claims within 45 days of the incident and because of the financial implications of this type of insurance you will usually have to get a claims form from the insurers and then fill it out and return it before the claim can go through.
As with all insurances there are certain exclusions that are on the policy, for example most insurers won't cover where the rent loss began to occur or had occurred before the insurance was purchased, if you try to claim after the time limit or if you fail to give proper and prompt information to your insurance company then it is likely that the claim will be repudiated.
With this type of insurance most insurers have a few terms that must be complied with before you take the insurance out and with this specific insurance they are usually centred around the tenant.
For example some will ask whether or not you have full references for the tenants and others will make sure whether or not they have a guarantor.