Rent & Legal Expenses Insurance

With monthly rents averaging £793.00 across England & Wales* in 2016, most landlords would consider it a problem if the tenant(s) failed to pay. Nobody can predict the future and peoples circumstances change. Everything from redundancy to long-term illness or separation of relationships can affect a tenants’ ability to pay rent every month, so why would any landlord want to risk losing their income when there is also the likelihood of a buy to let mortgage payment to think about?

“I cannot understand why every landlord is not covered by rental guarantee and legal expenses insurance, and this is particularly important for ‘accidental’ landlords who are often as much potential victims of the recession as their tenants”.

Property Ombudsman’s Christopher Hamer - www.residentiallandlord.co.uk

Rent Arrears Facts

  • The unemployment rate for April to June 2016 was 4.9% but was 8.5% back in 2011. **
  • Currently 9.3% of all rent due has been confirmed “as arrears of one day or more”. ***
  • As of Q1 2015 there were 70,900 tenants facing more than two months of unpaid rent e.g. severe rent arrears. ****
  • The annual Let Alliance Landlord Survey (Dec 2015), 76% of Landlords stated they would like their rent guaranteed and all legal expenses paid for if tenant eviction was required.

Key Features

  • Nil excess as standard
  • Rent arrears payable until vacant possession
  • Cover up to £2,500 rent per month
  • £50,000 legal expenses in order to obtain vacant possession
  • Available for 6 or 12 month tenancies and for all tenant types (including housing benefit)
  • The insurance policy is held against the property (not specific tenants) allowing the tenants to change without an impact on your policy (subject to tenant referencing)
  • Available on our tenant find and management service
  • Click here for further policy information.

Qualifying Criteria

  • A deposit equal to a months rent or greater must be taken
  • You must instruct a full property inventory

Price List

Length of Tenancy Price (inc. VAT)
6 months £100 / £16.66 per month
12 months £160 / £13.33 per month

Source
*    www.lslps.co.uk/documents/buy_to_let_index_may16
**   www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemploymenty_to_let_index_may16
***  www.lslps.co.uk/documents/buy_to_let_index_may16
**** www.lslps.co.uk/documents/tenant_arrears_tracker_may15