Landlord protection more necessary than ever as rent arrear cases rise

UK landlords are being urged to check that they have suitable financial protection for their property investments. This is following news of increased rent arrear cases.

Data from the Government shows that 7% of private renters in the UK were in arrears during April-May 2021. This is up from 3% in 2019-2020. Meanwhile, research conducted by BVA/BDRC for the NRLA reveals that 61% of landlords who had offered at least one tenant a rent-free or deferred rent period during the second quarter of the year absorbed the losses from their savings.

Landlord insurance provider Just Landlords highlights how vital suitable rent guarantee cover can be and comparing insurance products is key. Not compromising on the level of cover in favour of a lower price can help landlords find financial protection. Understanding the protection included with a policy can make it clear why one company may differ in price from another.

Just Landlords also points out that although some comprehensive landlord insurance products offer loss of rent protection, this might not provide the same cover as a separate rent guarantee insurance policy. The loss of rent and alternative accommodation cover included with its own Landlord Insurance may help if the property becomes uninhabitable. However, it isn’t applicable in the situation where a tenant can’t or won’t pay the rent.

Rent Guarantee Insurance for residential landlords

The specialist insurance provider noticed an increasing need for a rent guarantee product that can help in such situations. As such, it has launched a Landlord Legal & Rent Guarantee Insurance product for residential landlords, providing cover in four key areas*:

Rent arrears owed by a tenant,
Legal Defence,
Breach of tenancy agreement, and
Eviction

Landlords can tailor this product to suit their needs by selecting no excess, one month’s excess, or two months’ excess. A reduction in price is evident the more months’ excess that is opted for.

Sam Miles, Sales Director at Just Landlords, comments: “We know that at this time of year many landlords are looking to wind down for the festive period and are looking to sort any insurance renewals in the next few weeks. Compare products and rest assured the policy you have suits your needs, helping to keep your property and tenants safe.

“We believe our new Landlord Legal & Rent Guarantee Insurance is a strong product. We’re confident it can provide many landlords with suitable cover and help to provide peace of mind.”

*Policy limits and exclusions may apply, please see the policy wording for full terms and conditions.

Just Landlords is a trading name of Arthur J. Gallagher Insurance Brokers Limited, which is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909