Rent & Legal Eviction Insurance for UK Landlords – A Closer Look With Settio

In our latest video interview with Co-Founder Samuel Fitz-Hugh, we explore a critical yet often misunderstood element of property investment: Rent and Legal Eviction Insurance.

Here’s a breakdown of the key insights shared in the video to help investors stay protected, profitable, and well-informed.

The 5 Main Types of Insurance available for UK property investors:

• Buildings Insurance – Covers capital and structural risks to your buy-to-let property (typically included within service charges for leasehold)
• Contents Insurance for Landlords – Protects furnishings and appliances you provide
• Rental Insurance – Ensures rent continues to be paid when tenants fall into arrears
• Legal Eviction Insurance – Covers the cost of eviction proceedings and legal representation
• Landlord Liability Insurance – Protects you from injury or damage claims made by tenants or visitors

Each serves a distinct purpose, but the most commonly used policies are those for Rent and Legal Eviction claims. Settio’s protection policy includes contents, rental income, legal eviction and landlord liability insurance.

Rent vs Legal Eviction Insurance: What’s the Difference?

While these two insurance products are often packaged together, they serve different but complementary functions:

• Rent Insurance ensures landlords maintain consistent rental income when tenants default
• Legal Eviction Insurance pays the cost of legal processes and representation when removing a tenant who is in breach of contract

In many rent arrears cases, a landlord will need to rely on both protections in sequence, first to cover the missed rent, and then to regain possession of the property through a lawful eviction if tenants do not willingly leave.

What to Look for in a Rent Insurance Policy

When choosing rental protection insurance, landlords should consider the following key factors:

• Eligibility requirements, such as a minimum tenancy duration before a claim can be made
• Tenant referencing criteria and due diligence are needed to activate the policy
• The speed of claims processing and payment
• The maximum total value, or length of time, a policy will pay up to
• Any vacant possession coverage to protect income during a void period that follows eviction

How Settio’s Rent Protection Policy Works

Here’s a typical claim process:

1. Tenant’s non-payment reaches two full months of arrears
2. Settio submits a claim with all necessary compliance and due diligence documentation
3. Upon approval, backdated rent payments are received
4. Ongoing monthly updates ensure continued rent coverage monthly in arrears up until vacant possession of the property
5. Once tenants are removed, Settio clients continue to receive 90% of the rent for up to 6 weeks while the property is prepared for new tenants

The Legal Eviction Process: Explained

If a tenant refuses to leave, Settio’s protection package enables the following lawful eviction process:

1. Serve a Section 8 possession notice once the tenant is two months in arrears
2. The tenant has 14 days to repay arrears in full
3. If they remain in the property without full payment, solicitors apply to the court for a possession order
4. A court hearing typically occurs within 2–3 months; the insurer’s solicitor and a Settio representative will provide evidence
5. If granted, the judge will issue a possession order and a 14-day notice to vacate
6. If the tenant has not left after 14 days, we return to court in the same manner for the judge to appoint a bailiff
7. Within 14 days, the bailiff enforces the eviction and possession is regained

Throughout, Settio handles the legal process and liaises with insurers and solicitors to ensure full landlord support.

What Happens After Eviction?

Once the tenant vacates, our protection product continues to pay 90% of the rent for up to 6 weeks, giving Settio’s team time to make any required repairs and find and vet a new, reliable tenant.

What if the Property Is Damaged?

Property damage is a common concern. Here’s how you’re protected:

• Tenant deposit remains available for damage recovery
• Settio’s protection pack includes Contents Insurance, which will be claimed in the case of significant damage

People take care to insure their own homes, cars, and other valuable assets. Any investment property and its income should absolutely be treated in the same way.

With the right protection policies in place and a hands-on property management partner like Settio, landlords can confidently navigate rent arrears, tenant disputes, and legal complexities.

Watch the full video to hear from our experts and learn how Settio supports landlords from rent collection to legal eviction and everything in between.

Settio is not qualified as an insurance or financial advisor. Our team partners with specialised providers and reviews policies annually to ensure the best possible protection for landlords.