Rent Guarantee Insurance Calculator

Rent guarantee insurance covers landlord losses when a tenant defaults — typically 6 months of rent plus eviction legal costs. Premium is 1-3% of annual rent. This calculator compares the annual premium to expected loss at a given default probability so you can decide if coverage is worth the cost.

Monthly rent

Annual premium as % of annual rent

Coverage (months of lost rent)

Eviction legal cost included

Estimated default probability

Annual RGI premium

$576

Max coverage (6mo rent + eviction)

$17,900

Expected loss without insurance

$1,432

Premium cost above expected loss

-$856

How the math works

Rent guarantee insurance (RGI) — also called tenant default insurance — covers lost rent during tenant default + eviction legal costs. Premium: typically 1-3% of annual rent. Worth it when tenant screening is light or rent is high relative to landlord reserves.

Coverage typically requires screening minimum (credit score, income verification) and 6-month maximum payout. Some insurers add a waiting period (30-60 days) before claim payouts start.

How to Use

Enter monthly rent and annual premium as % of annual rent.
Enter coverage months and eviction legal amount.
Enter estimated tenant default probability.
Read premium cost and expected loss without insurance.

Frequently Asked Questions

Who should buy it?

Landlords with limited reserves or high-value units where one default can drain months of cash flow. Also useful in tenant-friendly eviction jurisdictions where the process can stretch 6-12 months.

Tenant screening required?

Yes. Insurers typically require minimum credit score (640+), income verification (3x rent), and clean rental history to issue coverage. Screening standards align with good landlord practice anyway.

Claim process?

Typical: 30-60 day waiting period from first missed payment before claim payout starts. Landlord must pursue eviction through the process. Most insurers require proof of reasonable collection efforts.