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.
Default, arrears and breaches of the Tenancy Agreement can be costly. With out 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 many 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.
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, due to unemployment, illness or marital break-up.
Rent and Legal Protection insurance provides Landlords with piece of mind and trouble free tenancy.
Such products are 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 the insurance company (Insurane Name), a well known reputable Insurer with many years experience in this market.
Eligibility
Landlords who are renting out their properties through Kings Lettings Ltd, under a Fully Managed or Rent Collection agreement are able to take out Rent and Legal Protection Policy.
A suitable Tenancy agreement must be in place, i.e.:
- An Assured Tenancy or Assured Shorthold Tenancy within the Housing Act 1988 (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 of the Housing Act 1988, or
- Similar legislation in Scotland
Summary of Cover
- Loss of rent until vacant possession (but not excedding 12 months)
- Legal Costs and Expenses of appointed Solicitor
- Legal Costs and Expenses of the appointed Solicitor to evict anyone
- Up to £75 per day to cover the accommmodation 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% if 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 Kings Lettings Ltd.
The premium is deducted from the monthly rental received by the tenants, before the rent is remitted to the Landlord.
Premiums for these contracts are eligible for Tax Relief.
Insurance Solutions
Financial Services Authority (FSA)
The FSA is the independent watchdog that regulates financial services, all general insurance activity became regulated by the FSA from, January 2005.
Kings Lettings is an Appointed Representative of FSA.
Kings Lettings Ltd FSA Registration number is ??????
Our permitted business is advising on and arranging insurances.
Insurance Solutions
Tenants Contents Insurance
Property belonging to the tenant is not insured by any policy taken by the landlord. It is the responsibility of the tenant to make their own arrangements. Under this policy, tenants can insire their own contents whilst in the rented property.
Tenants Contents Insurance - Summary of Cover
The policy automatically includes cover for Frozen Food, Theft of keys to the property and Loss of Metered Water and Oil. Also if the property is made uninhabitable, alternative accommodation up to a maximum of 30% of the sum insured can be claimed.