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.