The 7 Most Common Reasons Rent and Legal Protection Claims Are Declined
Industry data suggests that more than 1 in 10 claims are declined. In many cases, the issue is not the tenant — it is a compliance failure, late notification, or a mistake made months or even years before the claim is submitted.
Updated 20 January 2026
Legal Disclaimer
The information contained within TLA is intended for general guidance only and should not be relied upon as legal, financial, tax or insurance advice. Legislation, court procedures and insurance policies change regularly. You should always seek professional advice before taking action. Whilst every effort is made to ensure the content is accurate, TLA accepts no liability for any loss arising from reliance on this information.
Many landlords believe that having Rent and Legal Protection insurance means a claim will automatically be paid. Unfortunately, that is not always the case. With decades of experience reviewing landlord claims, we want to help ensure you are protected and not part of that statistic.
1. Late Notification
Most policies contain strict reporting requirements. Many landlords wait until the situation becomes serious before reporting a claim. Unfortunately, by then the insurer's position may already have been prejudiced. If you fail to report the claim within the timescales stated in your policy, the insurer may decline part or all of the claim. The lesson is simple: report early. Report often.
2. Deposit Protection Failures
One of the first documents insurers check is the deposit certificate. The deposit must generally be protected within 30 days of receipt. Because case law has repeatedly shown that judges can refuse possession claims where landlords have failed to comply with their statutory obligations, a failure to protect the deposit correctly may result in the insurer declining the claim entirely.
3. Prescribed Information Errors
Many landlords assume that because the Prescribed Information is included within their tenancy agreement, it is automatically compliant. Unfortunately, that is often not the case. The Prescribed Information should be served once the deposit has been protected and landlords should retain evidence showing when and how it was served. Failure to do so can create significant problems during possession proceedings.
4. Arrears Were Reported Too Late
A common misunderstanding is that arrears only become relevant once several months are outstanding. Insurers rarely see it that way. The first missed payment is normally the point at which arrears begin. If a tenant pays rent for five months and then misses month six, insurers will usually assess the position from the first month of default. Do not wait for the debt to increase. Report it immediately.
5. Gas Safety Certificate Problems
Insurers will often request every Gas Safety Certificate covering the entire tenancy. The certificates must be compliant. Something as simple as missing landlord details, incomplete information or missing historic certificates can create issues during possession proceedings. Always check certificates carefully when they are issued. Do not assume the engineer has completed everything correctly.
6. Delays By The Landlord
Everyone wants possession as quickly as possible. However, insurers regularly encounter delays caused by landlords themselves — delayed responses to solicitors, missing documents, ignoring requests for information, delays providing rent schedules, or delays instructing agents. In some cases, insurers may withdraw funding or limit cover where unnecessary delays have prejudiced the claim. Act promptly whenever information is requested.
7. Referencing And Rent Increase Issues
Referencing requirements exist for a reason. Where a tenant fails referencing but the tenancy proceeds anyway, many insurers will decline a future claim. The same issue can arise where significant rent increases are implemented without appropriate checks. As a general rule: ensure the correct notice has been served, be cautious with substantial increases, and check whether fresh referencing is required. A tenancy that no longer meets underwriting requirements may not be covered.
None of this is fixable after the fact
No policy can repair a compliance failure that has already happened. Most declined claims were preventable months earlier. The landlords who come out of a possession claim in reasonable shape are the ones who kept accurate records, acted on the first missed payment, and knew what their policy required of them before they needed it.