In these
uncertain times I thought it important to raise the issue of rent & legal on
the basis we are expecting to see an increase in tenants who are unable to meet
their rent obligations as the economic crisis worsens and more jobs are lost.
The latest data from the Ministry of Justice suggests that the average amount
of time to regain possession of a property is over 10 months. This will
inevitably increase as the backlog of cases grows.
Underwriters
are continually changing the terms & conditions and withdrawing products
from the market as the volume of claims increases so please note that the
information below is subject to change at short notice.
Rent
& Legal Protection (RLP) does exactly what is says on the tin – it pays
your rent if your tenant does not and your legal fees to recover possession.
Better still, we can include you as having ‘an interest in’ our policy which
means that we submit all the paperwork on your behalf should a claim become
necessary.
We
strongly believe in the benefits of this cover to protect our landlord clients,
especially as we look ahead and consider a deteriorating outlook. Policies terms
and rates are being withdrawn/changed very rapidly but if you would like to
discuss this then please do get in touch with us or your usual insurance
broker.
Typically,
cover should include:
– Monthly
rent paid up to a maximum value equivalent to six months, which includes 2
months at 50% following vacant possession (where applicable) from the date of
first arrears
– Legal
expenses up to £50,000 to cover eviction costs if the tenant is in breach of
their tenancy agreement
– Professional
court attendance on your behalf
– Fully
transferable to ensure no gaps in cover when tenants change (subject to passing
suitable referencing checks)
