Rent Protection Insurance
Rent defaults can be a serious problem for any landlord. As a landlord we know you will ensure you have the best possible tenant for your property, but unfortunately nobody can predict what the future holds. Safeguard your income with our landlord rent guarantee insurance, and make failed rent payments a thing of the past.Get a quote
Rent Guarantee Insurance
Making sure you choose the right property to invest in is one thing, but ensuring you choose the right tenant can be a different issue entirely. That’s why Hamilton Fraser recommends taking out rent protection insurance; where in the case a tenant fails to make a rent payment on time, you’ll be fully protected.
In a period where finances are unstable and unemployment becomes a common issue, the idea of taking out rent protection insurance is quickly proving to be an appealing option amongst the landlord community. Even if your tenants have undergone the most rigorous of referencing checks, in this time of economic uncertainty anything could happen – such as a tenant being made redundant, which in turn affects their ability to pay their rent on time.
Legal Expenses Insurance
Additionally, the policy will also offer a comprehensive Legal Expenses service – whereby landlords will be covered from any costly legal fees during an eviction process.
Legal Expenses and Rent Protection
Enjoy the best of both worlds, by combining legal coverage along with rent protection insurance up to the amount of the monthly rent as stated in the tenancy agreement – the maximum rent payable per claim is £50,000 or the equivalent of twelve months rent, whichever is the lesser amount.
- Legal costs incurred in proceedings against a tenant or guarantor up to £100,000 per insured incident
- Cover up to a maximum of £50,000 or the equivalent of 12 months’ rent
- £100,000 of legal expenses in respect of an insured incident
- 24 hour legal advice helpline
- Eviction proceedings against a tenant to recover possession of the property following a breach by the tenant of the terms of the tenancy agreement
To make getting a quote quick and easy, we’ve made some assumptions about you and your rental property for this policy
Before you buy a rent protection insurance policy you must be aware of the importance of meeting the following criteria:
- You have an Assured Shorthold Tenancy Agreement no longer than 12 months in place with your tenant
- You have taken a deposit equal to or greater than 1 months’ rent
- You have protected your tenants deposit with one of the Government Approved Tenancy Deposit schemes
- You have obtained a full tenant reference.
If you do not comply with all of the above then a rental protection insurance policy may not be suitable for your requirements. However, we would encourage you to call us so that we can offer further assistance.
Please see below some of our frequently asked questions
What is rent guarantee insurance?
Rent guarantee insurance protects the landlord’s rental income should the tenant default on their payments. More importantly, the policy also includes legal costs insurance. Legal expenses covers the costs incurred in issuing proceedings against a tenant or guarantor who fails to perform his obligations set out in the tenancy agreement regarding the rightful occupation of the insured property. It will cover you for costs incurred in legal proceedings to recover unpaid rent, damage to property, removal of squatters or a tenant, including eviction.
What types of tenant are accepted for rent guarantee insurance?
Any type of tenant as long as the tenancy agreement is directly between the landlord and tenant and the tenant or guarantor, if required, has passed a tenant check.
Why do I need a tenant reference?
Part of the criteria of our legal expenses and rent guarantee insurance policies is that you have completed a tenant check on your tenant.
How many tenants do I need to insure?
You must insure each person named on the tenancy agreement. If, in the case of shared accommodation, you have an agreement with a lead tenant and no other person is named you only need to insure the lead tenant.
How do I notify you of a claim?
There is a simple and easy to follow claims procedures available in your policy wording brochures.
Is there an excess to pay if I make a claim?
In the event of a claim an excess will be applicable. The excess will be the equivalent of the first months rent.
How much rent do you pay in the event of a claim?
We will pay the monthly rent as stated in your tenancy agreement up to a maximum of £2,500 per month, and limited to a total of £15,000 or the equivalent of six months rent, whichever is the lesser. Also rent is only paid up until vacant possession is gained.
Is there a limit to the amount I can claim for legal costs?
I already have a tenant in my property. Can I insure this agreement?
Yes, but you will not be covered for any claims which occur within the first 90 days of your policy.
Can I use my own solicitor?
No. This insurance only covers legal fees incurred by Arc’s panel Solicitors or their agents prior to the issue of court proceedings.
Will I be required to attend a court hearing?
Yes, should your case reach this stage you may be requested to attend court by the legal representatives appointed by Arc.
My tenancy agreement is for 24 months, can I purchase landlords legal expenses and rent guarantee insurance cover?
No, the tenancy agreement must be for a fixed term of no more then 12 months.
What type of tenant reference do I need in order to purchase your rent guarantee insurance?
You will need to have a full profile tenant reference check or a full Arc approved tenant reference check with a pass rating not more than 30 days prior to the start of this policy. For full details of alternative ARC approved providers click here.
How to decide on a tenant and keep a good relationship with them?
If you have completed a full profile tenant reference and selected a good tenant they are worth hanging on to. Ensure you maintain regular communication with your tenant, so if there are any issues they can be dealt with quickly and easily.
What does legal expenses and rent guarantee insurance cover?
Legal expenses provides cover in respect of legal costs incurred in proceedings against a tenant or guarantor where the tenant fails to perform his obligations set out in the tenancy agreement relating to the rightful occupation of the insured property. The maximum amount payable in legal costs is £50,000 per insured incident.
Rent guarantee provides cover in respect of rent owed by a tenant under a tenancy agreement in relation to the insured property up to the limits of indemnity, where the insured incident occurs during the insured period and you are, where appropriate, pursuing a claim under the legal expenses section of this cover against the tenant to evict them from the insured property. The limit of indemnity under this section is the amount of monthly rent as shown in the tenancy agreement up to a maximum of £2,500 per month. The maximum rent payable per claim is £15,000 or the equivalent of six month’s rent, whichever is the lesser amount.
Who can have legal expenses and rent guarantee insurance?
The landlord can purchase this cover to protect them against the tenant failing to perform their obligations as set out in the tenancy agreement.
What is legal expenses and rent guarantee insurance?
Legal expenses insurance covers you for the costs to pursue eviction proceedings against a tenant or guarantor, where the tenant fails to perform their obligations as set out in the tenancy agreement. To complement the legal expenses insurance you can include rent guarantee insurance to cover you for the rent owed by the tenant whilst pursuing them through a claim under the legal expenses.
Do I need to show references to get legal expenses and rent guarantee insurance?
You do not need to show us the references in order to purchase the legal expenses and rent guarantee policy, however these may need to be submitted in the unlikely event of a claim.
How does rent guarantee insurance work?
As long the tenant is being evicted through the legal expenses section of the policy, the rent guarantee insurance will protect your monthly rent shown in the tenancy agreement up to a maximum of £2,500 per month while the tenant remains in the property. The maximum rent payable per claim is £15,000 or the equivalent of six month’s rent, whichever is the lesser amount.