Specialist general insurance provider, Assurant Intermediary, has introduced a landlord insurance product providing rent guarantee and legal expenses cover to safeguard landlord clients against non-paying tenants and the associated legal costs of removing tenants from their rented accommodation.
The policy provides a guarantee to cover up to £3,000 per month for any rent more than one month outstanding for a period of 12 months, provided that a legal claim against the tenant is being actioned via the legal expenses policy.
The policy also covers up to £50,000 in legal pursuit in the following cases:
- if the property has suffered physical damage
- in trying to get possession in the event of breaching tenancy agreement
- covers costs of evicting anyone from the property who is there without permission
- outstanding rent recovery
According to research from Benham and Reeves in September 2021, the average refurbishment budget for property damage from a rogue tenant is around £20,000, with average legal fees coming to £3,000 and lost rental income estimated at £11,820.
The research said the timeframe to evict a rogue tenant was around 51 weeks, with the largest delays coming from the Section 21 ‘no-fault’ eviction notice period at 26 weeks and Covid-19 delaying court proceedings by 10 weeks.
Richard Miles, director of Assurant Intermediary, said: “Since Covid-19 struck, we have had time to review this important product and improve it for a post pandemic market. It now provides comprehensive cover and great value for our introducers’ landlord clients.
“Rent protection is typically set at £2,500 monthly rent coverage but we have negotiated cover up to £3,000 per month in the event of non-payment by tenants at a cost of £160 per year. With additional features like the 24/7 free legal advice helpline coupled to cover for legal pursuit and legal defence, advisers can offer this valuable product to their landlord clients and promote greater confidence in any successful rental strategy.”