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Whether a Landlord buys a property specifically to
rent out, or is renting out their own home due
to work or personal reasons, they need to ensure
that income from the tenant will be sustained throughout
the Tenancy Agreement.
Defaults, arrears and breaches of the Tenancy Agreement
can be costly. Without insurance, the Landlord may
suffer financially as a result of lost rent, and must
pay any legal costs from his own pocket. Indications
are that this process may take between 5-7 months and
in excess of £895* in costs. Furthermore, the
Landlords own Solicitor may not specialise in this
field of law.
*Source: painsmith, October 2004
Our Rent and Legal Protection policy is designed to
cover against any possible rent arrears until vacant
possession is obtained. It also provides for Legal
Expenses as a result of a tenant breaching the tenancy
agreement, or unauthorised occupation of the property.
However thorough we are in vetting prospective tenants,
even the most exemplary individual may be unable to
pay the rent, perhaps due to unemployment, illness
or marital break-up.
Rent and Legal Protection insurance provides Landlords
with peace of mind and a trouble free tenancy.
Such products are not commonly available as stand-alone
policies, and there is a wide variation in the levels
of cover in those policies, which can be obtained.
This contract is underwritten by AXA Insurance UK
Plc, a well known and reputable Insurer, with many
years experience in this market.
Eligibility
Landlords who are renting out their properties through
Countrywide Residential Lettings, under a FULLY MANAGED
or RENT COLLECTION agreement are able to take out our
Rent and Legal Protection Policy. Visit your local Countrywide
Residential Lettings Branch for details on how to apply.
A suitable Tenancy agreement must be in place, i.e.:
- An Assured Tenancy or Assured Shorthold
Tenancy within the Housing Act 1988 (as amended by
the Housing
Act 1996) or any other amendment to that Act, or
- A Tenancy Agreement with the Tenant as specified
in schedule 1 part 1 of the Housing Act 1988, or
- Similar legislation in Scotland
Summary of Cover
- Loss of rent until vacant possession (but
not exceeding 12 months)
- Legal Costs and Expenses of the appointed
Solicitor
- Legal Costs and Expenses of the appointed
Solicitor to evict anyone
- Up to £75 per day to cover the cost
of accommodation for a maximum of 30 days while the
appointed
Solicitor tries to obtain a possession order
- The maximum cover for Rent is £2,000
per month
- The limit for Legal Costs and Expenses is £25,000
Premium Calculation
The premium is currently calculated at 2.9% of the monthly
rental amount, including Insurance Premium Tax (currently
@ 5% of the premium).
Should the monthly rental amount change during the currency
of the rental agreement, the revised premium will be
automatically amended by Countrywide Residential Lettings.
The premium is deducted from the monthly rental amount
received from the tenant, before the rent is remitted
to the Landlord.
Premiums for these contracts are eligible for Tax Relief.
Full policy details are available upon request. |
