My rent and legal insurance was cancelled?

My rent and legal insurance was cancelled?

10:14 AM, 20th November 2023, About 3 weeks ago 10

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Hi All. A bit of a long story. Apologies!

I have a fully managed property and took out rent and legal cover through the estate agents. My tenant was fine for the first 9 months paying on time, but then started to fall behind, despite promises to put things right.

My agents then decided to change the rent and legal insurance provider.  We had a conversation regarding the change over of the insurance for this and another couple of properties. At no point did the say there would be a problem.

Anyway, changeover happened for the other properties, but this particular property was left out.

Basically, they cancelled my existing policy and never replaced it with a new one.

The reason being “tenant was in arrears”.

My agents were aware of the arrears for many months! I am currently going through the financial Ombudsman to try and get redress.

Interestingly, I was looking at the Citizens Advice website and it stated that around 10% of tenancies were in arrears in 2022.

I’m sure this must be quite a common occurrence.

Has anyone been in this position, if so what was the outcome?

Thanks for reading.


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Paul Essex

12:51 PM, 20th November 2023, About 3 weeks ago

As with any insurance policy you cannot take one out if there is already a problem. Your agent should never cancel the insurance under these circumstances.


13:16 PM, 20th November 2023, About 3 weeks ago

There are so many T&C’s in and around “Rent Guarantee Insurance” that even if your existing policy wasn’t cancelled you might find that it doesn’t give you the level of cover you might have expected anyway.

Your agent should have been more vigilant so I guess you could ask them to honour the T&C’s of the ‘cancelled’ policy since it was their mistake. And if they don’t move your other houses to another agent.

Failing that looks like you might have an eviction to deal with and I would use a specialist if it needs to go that far. Best thing to do is reach out to the tenant directly to understand what’s going on

Fed Up Landlord

14:45 PM, 20th November 2023, About 3 weeks ago

If agent cancelled on your behalf without taking out another or keeping it knowing there were arrears and not acting on it, then it's on them I am afraid.

If tenant was in arrears why didn't they invoke the policy?

Either they cover all the rent and legal costs, or claim on their professional indemnity policy ( mandated by law) for negligence. If they won't, then make a complaint through their complaints procedure, and if not satisfied, complain to their redress scheme ( also mandated by law)


11:03 AM, 21st November 2023, About 2 weeks ago

I agree that this is an error by the agent. The sgent's redress scheme may also be willing to intervene.


9:59 AM, 25th November 2023, About 2 weeks ago

Reply to the comment left by Paul Essex at 20/11/2023 - 12:51
Hi Paul
Thank you for your reply.
It's just common sense. I find it hard to believe a nationwide letting agent would have made this mistake.


10:06 AM, 25th November 2023, About 2 weeks ago

Reply to the comment left by JaSam at 20/11/2023 - 13:16Hi JaSam
Thank you for your advice.
Despite them admitting some errors they will not provide the policy benefits, as this would mean evicting the tenant at their cost and paying the outstanding arrears. Something they are not willing to do. They are a national letting agent. This problem must be much bigger than just me.

Incidentally, I will be moving my properties to another letting agent as soon as.


10:08 AM, 25th November 2023, About 2 weeks ago

Reply to the comment left by Fed Up Landlord at 20/11/2023 - 14:45
Thank you for your comments.
I have asked for them to provide the same benefits as if the rent and legal policy was in place, as they cancelled it without making a claim - they have refused point blank.


10:15 AM, 25th November 2023, About 2 weeks ago

Reply to the comment left by David at 21/11/2023 - 11:03
Hi David
It was a business decision to change providers. My premiums doubled. So they appear to have got a better deal, while leaving me, and I suspect other landlords, in an uninsurable position.

Michael Crofts

15:31 PM, 27th November 2023, About 2 weeks ago

Why haven't you issued proceedings against the agent to claim damages to make good your losses? I appreciate that the final amount won't be known until you have regained possession and re-let. Is it because there is more to the case than you have said so far? They do appear to have been negligent on the facts you have stated.


17:05 PM, 27th November 2023, About 2 weeks ago

Reply to the comment left by Michael Crofts at 27/11/2023 - 15:31
Hi Michael
Thank you for your reply.
It took me a while to get through to the final response letter with the letting agents. They admitted making errors, but declined to make amends.
After which I contacted the Financial Ombudsman as it was a faster and cheaper option.They took on my case and I am now waiting to see outcome.

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