COVERED
Let Insurance Services say, “Yes, we will
decline cover if a reference is unsatisfactory. The agent or landlord should not enter into a tenancy if there are any doubts about the financial standing or integrity of the client. If there are grey areas, the agent can discuss the particular reference with our senior managers”.
Rental WaRRanty Insurers use differing terminology for their policies, with some labelling rent insurance polices ‘Rental Warranty’ or ‘Rental Warranty & Legal Expenses’, or ‘Landlord Rent and Legal Protection’, or ‘Rent Guarantee’. Some make the point that a Warranty is not an Insurance, further complicated by others’ choice of the word Guarantee. What is included in the polices also
varies, some separate Legal Expenses from Rent cover, others keep them together, some put Legal Expenses in with Buildings insurance, while some wrap up all the landlord needs in one policy; Home and Legacy, for example, offer their Ultra Landlord policy which covers buildings, contents, income protection, legal expenses, employers and property owners liability, identity fraud, accidental damage, malicious damage, theft, loss of rent and a 24/365 legal help line. Comprehensive! Most policies are less inclusive to allow
choice and affordability, so the landlord needs to assess his needs and decide which issues may affect him most; not easy. The basic split of coverage between Legal Expenses and Rental Warranty is that Legal
Expenses provides cover for legal costs incurred in eviction and repossession of a property while Rental Warranty provides payment of unpaid rents for anything up to 12 months. Cover varies from policy to policy where
claiming periods are concerned as well. Some are much longer than others, an important factor where court proceedings are concerned. Michael Portman, of Let Insurance Services says that their notification period of 45 days allows time for paperwork etc to be arranged, compared to
others who set a limit of 30 days. Endsleigh’s period is 68 days.
Some insurers also provide further cover
(at, for example, 50 per cent of the rent), for a shorter period once possession has been achieved, while a new tenant is sought. (Home and Legacy and Homelet)
MajoR featuRes: Rental WaRRanty Up to 12 months rent paid if a tenant defaults on their rental payments (but not usually for the first month of non–payment). Once vacant possession is obtained some policies provide up to 50 per cent of the monthly rent for up to two further months whilst a new tenant is found.
chRis knight leaseguaRd
We pride ourselves on our personal and efficient service; a real person at the end of the phone!’
MajoR featuRes of legal expenses Cover for legal expenses, to recover possession of the property if a tenant fails to vacate at the end of the tenancy to pursue the tenant for disputes about damage to the property for defence costs if action is being taken against the landlord by his tenant to evict squatters witness expenses The cost of the landlord’s necessary alternative accommodation costs whilst trying to gain possession of the property Access to a legal helpline for advice on tenancy related matters
All policies and sections have upper limits.
Main exclusions For claims not made within the policy’s notification period of the event which resulted in the dispute or non payment of rent If a deposit has not be collected before the start of the tenancy If all of the tenants have not been satisfactorily referenced
The 1st month’s rent Any rent after vacant possession of the property is obtained if the property is not going to be re-let Where policy cover starts after the commencement of an existing tenancy some insurers will not cover any incident arising in the first 90 days of the policy term.
unique selling points Rentguard: White labelled online quotation system and branded products. These allow agents agents freedom and confidence when selling the insurance products as they can offer a more personalised product to their clients. Applies to all insurances and referencing. Endsleigh: Rent Guarantee offers an extended 68 day claim reporting period and up to £10,000 cover per month. Home and Legacy: Costs are the same for all categories of tenants, individuals, couples or up to eight sharers or students including those in receipt of Local Housing allowance. Home and Legacy also insure very high rents. Homelet: 50 per cent of the rent for up to 3 months once vacant possession is obtained while seeking a new tenant. No excess payable with cover for all of the landlord’s legal expenses up to £50,000. Leaseguard: Rent Guarantee with Legal Expenses includes Landlords Identity Theft protection. The firm prides itself on its friendly, personal and efficient service. PropertyRisks: Landlords benefit from their fixed price policy, unlike others, the premium is payable per property, regardless of the number of tenants.
PROPERTYdrum NOVEMBER 2010 53
nigel atkinson pRopeRty Risks
Unlike some insurers our premiums are per property - however many tenants live there.’
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