Rent Guarantee Insurance

An insurance policy that pays the landlord's rent if the tenant defaults. Coverage typically lasts 6-12 months and costs 2-5% of annual rent. On a $1,200/month rental, that is $288-$720/year. It provides a safety net, but it is not a substitute for good screening. Most policies require that the tenant met minimum screening criteria at placement. Think of it as backup, not a primary defense.