As a landlord, ensuring a steady rental income is crucial for your property investment.
However, even with thorough tenant vetting, unforeseen circumstances can lead to rent arrears. That's where Rent and Legal Protection cover comes in, offering peace of mind and financial security for property owners.
What is Rent and Legal Protection cover?
This specialised insurance product is designed to safeguard you as a landlord against the unexpected. It provides you with coverage for lost rent and legal expenses associated with regaining possession of your property if tenants fall into arrears or breach the tenancy agreement.
What are the key benefits for landlords?
With Rent and Legal Protection you benefit from:
- Financial security: Provides an income stream even during tenant disputes.
- Legal expertise: Access to legal professionals without high upfront costs.
- Eviction support: Assistance with the often lengthy and complex eviction process.
Why is Rent and Legal Protection important?
Even the most reliable tenants can face unexpected financial difficulties due to accidents, unemployment, or illness. This cover ensures that you're protected against potential losses, allowing you to maintain your income and cover mortgage payments or other property-related expenses.
Three factors to keep in mind when choosing the right cover
1. What coverage options are the best fit for my portfolio?
When selecting a Rent and Legal Protection plan, you should consider various factors so that you can be sure that the cover you buy suits your rental property and/or portfolio.
For example, our cover includes the following:
- Loss of rent until vacant possession for up to 12 months in respect of an insured incident
- Rent up to £5,000 per calendar month
- Legal costs and expenses of a solicitor appointed on your behalf, up to £50,000 for any one insured incident including rental payments in respect of a single insured incident
- Up to £75 per day to cover the cost of accommodation for a maximum of 30 days while the appointed solicitor seeks to obtain a possession order
2. Compare each covers’ excesses and premiums
You may find that premium costs vary significantly depending on the level of protection you choose. While cheaper policies may seem attractive, they may not offer sufficient coverage for more complex disputes. Look closely at any excess fees as well, as they can impact the total cost if you need to make a claim.
When comparing offers, keep in mind that your aim is to find the right balance between what you can afford and what will keep you protected.
3. What do the claims process involve?
Do your due diligence and research how long the claims process has taken other landlords with your chosen cover. Don’t forget to check out the insurer’s reviews and how efficient or straightforward other landlord claims have been handled.
