A Guide to Landlord Rent Guarantee Protection insurance
Disputes between landlords and tenants arise for many reasons, including rent arrears, anti-social behaviour, repair claims and deposits. Despite rigorous tenant checks and references, tenants defaulting on rent or breaching the tenancy agreement is always a risk for landlords.
Evicting tenants can be costly and time-consuming. While losing rent will cost you, recuperating lost rent can also be expensive. Rentguard’s Landlord Rent Guarantee Protection insurance provides cover for certain types of action in the event of an eviction claim and rent arrears. Landlords may find that Landlord Protection offers peace of mind in the event of having to take legal action to evict a tenant due to the tenant falling into rent arrears.
Find out why Landlord Protection insurance cover is important to consider, what it covers and what happens if you do need to make a claim.
The following information is for guidance purposes only and is not a substitute for policy documentation, which you should read carefully and in full. Cover is subject to the full terms, conditions, limits and exclusions of Rentguard’s Landlord Rent Guarantee Protection insurance policy wording.
Why do I need Landlord Protection?
As well as the considerable cost of covering unpaid rent payments, if you were forced to issue court proceedings against your tenant, you could incur substantial legal fees.
Landlord Protection provides cover for disputes relating to rent arrears, repossession or eviction processes. Cover will involve mediation costs with the tenant (and guarantor if required) to resolve breaches in the tenancy agreement relating to the rightful occupation of the insured property.
This type of insurance also provides cover for eviction proceedings against a tenant to recover possession of the insured property where the tenant fails to perform their obligations set out in the tenancy agreement relating to the rightful occupation of the insured property.
What does Rentguard Landlord Protection insurance cover?
Cover for legal advisers’ costs is available to help you pursue a claim in the following situations:
- Mediation: To participate in a mediation with the tenant to resolve breaches in the tenancy agreement relating to rightful occupation of the property.
- Tenant Eviction: To pursue a legal action against a tenant to recover possession of the insured property where the tenant fails to perform their obligations set out in the tenancy agreement relating to the rightful occupation of the insured property.
- Rent Guarantee: Cover for rent owed by a tenant under a tenancy agreement in relation to the insured property up to the maximum amount payable, where the insured event occurs during the period of insurance, and you, where appropriate, are pursuing a claim against the tenant to evict them from the insured property.
Please read the Rentguard Legal Expenses and Rent Guarantee policy wording for cover limits and exclusions.
What is mediation?
Mediation is an alternative dispute resolution (ADR) that gives landlords and tenants the opportunity to resolve issues without going through the courts.
The purpose of mediation is to help the two parties find a mutually agreeable solution overseen by an independent mediator.
Mediation involves an impartial person, trained to deal with difficult discussions, who acts like a referee in an informal meeting between the two sides in an attempt to find a way to resolve the problem.
A mediator will not make a decision nor will they enforce any resolutions or pathways. They will guide the parties to find an outcome that will be entirely decided by the landlord and tenant.
What is tenant referencing?
Tenant referencing is an in-depth overview of prospective tenants and any guarantors.
Referencing is key to protecting your asset and while it will cost you, it is perhaps one of the most important outlays you will make as a landlord. Referencing is a condition of Rentguard Landlord Protection insurance.
What happens if you want to make a claim?
Claims must be reported within 45 days of the insured event by completing and submitting a claim form with all relevant information. Failure to report a claim within 45 days of the insured event could invalidate the insurance cover.
When will the rent arrears be paid?
Any rent arrears covered under the insurance will generally be paid within 21 days from the end of the rental month they became due.
Help is at hand – get in touch with Rentguard
With vast experience of handling insurance policies for a wide range of landlords, and with relationships with some of the leading insurers, Rentguard aim to simplify your insurance arrangements, help to protect your property, its contents and your liabilities.
Get a quick quote online or speak to our specialist team on 0333 000 0169 today!
The sole purpose of this article is to provide information on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Rentguard and National Residential Landlords Association, an Introducer Appointed Representative of Arthur J. Gallagher Insurance Brokers
