COVERED
hoW to DemonStrate the importance of inSUrance When it comes to persuading landlords that they really do need insurance, there many reasons. David Scutt of Endsleigh says, “As a
landlord myself, property is an investment which will hopefully return long term sustainable income for my family. Adequately protecting this asset against any eventuality is as important as having the right tenants living there.” Andy Wynne-Jones, HomeLet Head of
Underwriting and Product Development says, “We pay out over £3 million a year in Rent Guarantee and Legal Expenses to letting agents and landlords,” – which speaks for itself. Richard Matthews, Marketing Manager
at
LettingRef.com says, “Rent and legal expenses cover protects the landlords loss of income in the event of non payment by the tenant. Of particular importance in protecting the rental yield and any mortgage outgoings.” Nigel Atkinson – National Business
Development Manager at PropertyRisks also cited the landlords’ need to pay letting agents’ management fees in addition to the mortgage as a reason for the increased take up of Rent Guarantees. Steve Jones, Business Development
Director at Rentguard says, “Cover against unforseen loss is vital – failure to have a sufficient insurance policy in place could leave the customer facing huge financial burdens and incredible stress, in the event of a problem. Our premiums for Legal Expenses and Rent Guarantee are fixed and our rates are really competitive.”
michael portman let inSUrance SerViceS
Landlords are concerned that rising unemployment puts major pressure on a tenant’s ability to pay the rent.’
hoW haS YoUr inSUrance helpeD lanDlorDS?
homelet case Study Robert Lambie’s daughter Kate bought a two-bedroom house whilst studying nursing at Portsmouth’s St Mary’s Hospital. After graduating and moving to Brighton
to further her career, Kate decided to rent her house out to cover the mortgage repayments through an approved HomeLet agent who advised her to take out insurance. Mr Lambie followed the
advice after reading an article in a newspaper. “I came across an article about the increase in the number of defaulting tenants defaulting due to the recession and unemployment and the effect it’s having on landlords. “Thank goodness I did! The tenant who
anDY WYnne-JoneS homelet
We pay out over £3million a year in Rent Guaranteed and Legal Expenses claims.’
moved into my daughter’s house paid the deposit and the first month’s rent but thereafter only paid half a month’s rent, claiming he’d been made redundant.” “We contacted HomeLet and spoke to a
claims advisor who was brilliant. Kate had only taken the policy three months before the claim. I couldn’t fault the service HomeLet provided. I felt that there was someone involved who had our best interests at heart.” HomeLet’s in-house team took the
tenant to court to obtain vacant procession. Mr Lambie received all the unpaid rent less one month’s excess; £3,500. The legal expenses associated with evicting the tenant were also covered. Mr Lambie concluded, “I can’t thank HomeLet enough.
54 NOVEMBER 2010 PROPERTYdrum
I found their approach to be professional and well informed. Their responses were prompt and they were a pleasure to deal with. Rent Guarantee was the best money I’ve ever spent. I can’t tell you how reassuring it has been to have HomeLet’s advisors at the end of a ‘phone or an email.”
home and legacy case Study A tenant was not paying his rent of £1000 per month. As our rent and legal policy does not cover the 1st month’s loss of rent (the excess) the landlord was only able to claim £1000 on the insurance for the second month. Due to the excess he was £1000 out of pocket. However, the tenant was taken to court
using the legal service provided with the insurance and the judge ordered that the tenant pay back the arrears of £2000 along with interest; the judgement was £2196.21 which was paid by the tenant. As the insurer’s outlay was £1543.21 the
insurer was in credit by £653, so this sum was paid back to the landlord so rather than being £1000 out of pocket the landlord was only £347 out of pocket. However, the landlord will get back the £347 from the deposit so he will have suffered no financial loss at all. The landlord was more than happy with the cover and service provided.
rentshield Direct case Study “A landlord who had taken
our Rent Protection and Legal Expenses wanted to move back into his property, however the tenant had lost his job and was advised to stay put until he was made homeless. The Rent Protection cover paid the
rent whilst the tenant remained in the property even though this was after the expiry of the certificate (other companies stop making payments as soon as the policy expires) and paid the eviction costs.” Next month, don’t miss our review of Professional Indemnity!
www.endsleigh.co.uk www.homeandlegacy.co.uk www.homelet.co.uk www.leaseguard.co.uk www.letinsurance.co.uk www.letsure.co.uk www.lettingref.com www.propertyrisks.com www.paragonadvance.com www.rentguard.co.uk www.rentshielddirect.com
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