RENT AND LEGAL PROTECTION

Many landlords depend on secure rental income either to meet mortgage payments or to cover living expenditure and any interruption to the rental incomes is likely to have serious consequences.

No matter how carefully tenants are selected and referenced there is always a risk that their circumstances may change through no fault of their own, i.e. divorce, illness, injury, redundancy, etc., which may render them unable to meet their rental obligations. Adequate insurance transfers this risk and protects the landlord's income. A rental and legal protection policy will also meet all the legal costs in pursuing rent arrears, dilapidations and in obtaining possession of the property through the Court system.

The policy covers:

  • The landlord for any loss of rent following a breach of the Tenancy Agreement by the tenant.
  • The landlord for legal costs and expenses including court costs and the advice of a specialist solicitor following a breach of the Tenancy Agreement by the tenant.
  • The maximum liability under one certificate of Insurance is £25,000.
  • The maximum liability in respect of rent is £2,000 per month unless special agreement has been obtained.
  • 12 monthly payments or until full and vacant possession is obtained.
  • 2 monthly repayments once full and vacant possession has been obtained or until the property is re-let.

Limits of Indemnity:

  • The maximum liability under one certificate of Insurance is £25,000.
  • The maximum liability in respect of rent is £2,000 per month unless special agreement has been obtained.
  • 12 monthly payments or until full and vacant possession is obtained.
  • 2 monthly repayments once full and vacant possession has been obtained or until the property is re-let.

Conditions:

  • An insured incident must arise during the period shown on the Certificate of Insurance.
  • The Tenancy Agreement must be in writing and comply with the relevant legislation.
  • Rent will be paid at 100% of the monthly rent until vacant possession is obtained and 75% of the insured rent once Vacant Possession has been obtained.
  • The property must be made available for re-letting and the landlord must accept any reasonable offer of tenancy in excess of 85% of the preceding rent.
  • The landlord will be responsible for the Policy Excess as detailed in the Policy Document.

 

 

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