Brokers: Second Property

Landlords Legal Expense and Rent Guarantee Protection

Why Landlords Legal Expense and Rent Guarantee Protection?
The popularity of property investment is increasing. Unfortunately situations can arise where tenants may become a nuisance or you find yourself in dispute. These disputes can leave you with no alternative but to resort to legal action which can be both expensive and time consuming.

Our Landlords Legal Expenses policy helps protect you against unforeseen legal costs resulting from an incident where the tenant fails to perform their obligations set out in the tenancy agreement (relating to the rightful occupation of the insured property).

Similar to our Landlords Legal Expense cover, this policy provides additional cover for rent arrears owed by the tenant under the tenancy agreement where an event has occurred and where appropriate the insured is issuing proceedings for damages under this policy against the tenant.

The Cover
The insured is covered for reasonable legal fees incurred by the appointed solicitor for their costs in pursuit of civil legal cases for damages or injunctions against the tenant or their guarantor. Examples of cover could include action against tenants who have damaged the insured’s property and non payment of rent.

The policy provides a limit of indemnity up to £25,000 of the appointed solicitors reasonable legal fees.

It also provides a limit of indemnity up £2,500 per month for rent arrears. This is subject to a maximum payable per claim of £10,000 or the equivalent of six months rent, whichever is the lesser amount.

Where the tenancy agreement commenced prior to the inception of the policy and where an insured event occurs within the first 90 days of the policy inception, cover would not be granted unless evidence could be provided to show continuous insurance up to the inception of this policy.

An excess applies with regards to rent arrears of one months rent.

Amounts in dispute of less than £250 including VAT are not covered.

At A Glance
• Protection for legal expenses
• £25,000 costs per claim
• Protection for rent arrears