Your Rent & Legal Expenses policy
An upward path
Even though 2020 was a difficult year for many businesses, it seems the lettings industry could be on a path to better days. While there are still some bumps and challenges to come – with several significant legislative changes on the horizon – what we have learned is that stability and a good range of products are more important than ever.
It would seem that, with little government support available for those letting a property, demand for Rent & Legal protection policies has increased significantly. In March last year, The Lettings Hub saw enquiries for Rent & Legal protection policies more than double. And it would seem this trend was felt across the industry. Furthermore, the number of claims made against these policies doubled in 2020 compared to 2019.
However, the devil is in the detail and, despite the increase in demand, not all policies offer the much-needed cover when it comes to the point of making a claim. That’s why it is so important to check that, when you do purchase an insurance product, it does stack up and offer the right protection.
Here are 5 key areas you can check when looking at Rent & Legal protection, to make sure you’re sufficiently covered.
Does your policy cover Covid?
Force majeure clauses usually include acts of God and terrorism – and acts of God normally include pandemics too. Some Rent & Legal Protection providers now include a Covid19 clause. This means that anyone seeking to claim for loss of rent due to tenants affected by Covid-19 or whilst the eviction ban is in place may face the harsh reality of not being covered. As the pandemic rolls on, it’s vital to have a policy with no Covid-19 clauses as it could result in months of arrears before you would be eligible to make a claim. We highly recommend you review any existing or future policy to ensure this important exclusion is not hidden in the policy wording.
Some policies include 1 to 2 months’ rent as an excess which could equate to thousands of pounds in unrecoverable income for your landlords. When choosing a Rent & Legal Protection provider, look for one with no claims excess. That way your landlords will be paid 100% of arrears up to the policy limit.
Post-vacant possession cover
When a property is severely damaged at the end of a tenancy, it becomes more difficult to make it available straight away for rental without investing time and money in repairs. A good rent and legal expenses policy will include cover for a percentage of the rent whilst repairs are taking place. Look for a policy which covers at least 75% of the rent for 2 months or more.
Limit on rental values
A lot of policies on the market have a cap on the rental value they cover each month. For larger properties or those in high rental value areas, landlords could end up with a significant percentage of their arrears not being covered. If you serve a high-value area of the country, look for a policy without a cap on the rental value to ensure you’re able to meet the needs of your current, and any new, landlords.
It is a legal requirement to prove that attempts have been made to reach a payment agreement with tenants in arrears before taking the matter to court. During mediation rental arrears can continue to accrue. Having a policy that includes a specialist mediation service can help bring things to a conclusion faster before the tenant falls further behind. This will ensure your landlords have a plan to receive the arrears whilst tenants are given a fair chance to try to rectify the situation without fear of losing their home..
It’s never too late…
Even if a landlord has not been affected by these hardships so far, a further extension to the eviction ban on top of yet another lockdown could see even more tenants pushed to their financial limits. With Rent & Legal Protection policies still very much available on the market – and still so affordable, it may be wise to look into it.
If, as an agent, you have not offered Rent & Legal Protection to your landlords, now is the time to help.
We are here for you…
Our Rent & Legal Protection policy includes all you need to protect your landlords with no Covid clauses or restrictions on rent values.
If you would like to discuss this type of protection or the best lessons we learned during this pandemic, we’re here to help. Drop us an email or give us a call on 0345 241 0768.
Rent & Legal Protection
From £16.67 per month or £200 annually
Prices quoted include admin fees and exclude taxes
- 12 months’ rent arrears cover
- Zero excess
- No covid restrictions
- Repossession cover for any breach of tenancy
- 75% of rent covered up to 2 months if tenant damage means the property cannot be immediately re-let