Rent Guarantee and Legal Expenses provider gone bust?
All my rental properties are covered with rent guarantee and legal expenses cover. One of the properties is up for renewal on 21st August, and I am struggling to find cover due to COVID-19.
If anyone has been through this process recently, I would appreciate if you could share any companies you have been able to obtain cover with.
Unfortunately, the company I currently have cover with has gone bust, and the end insurer (DAS) do not deal directly with the public – only via intermediaries.
The current tenant is working (Head Teacher) and was fully referenced prior to commencing the tenancy (ID check, Credit Reference, Bank and employer references).
Many thanks
Paul
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Facts behind the end of the eviction ban
Member Since July 2013 - Comments: 61
12:05 PM, 17th August 2020, About 6 years ago
I have the same problem as I just found out this morning. Now I’m undecided on letting the property again or selling it.
Member Since November 2013 - Comments: 129
11:01 AM, 18th August 2020, About 6 years ago
Silly question, have you asked DAS for a list of their introducers/intermediaries so you can pick one and send the business through them to DAS?
And Deborah and I are not related….at least I dont think we are haha 😉
Member Since August 2013 - Comments: 2
11:05 AM, 18th August 2020, About 6 years ago
you could try Alan Boswell insurance. I’m in the same position
Member Since November 2014 - Comments: 44
11:05 AM, 18th August 2020, About 6 years ago
Try Rentguard they still offer cover.
Member Since March 2015 - Comments: 124
11:15 AM, 18th August 2020, About 6 years ago
Rentshield are offering rent guarantee
Member Since May 2016 - Comments: 1576 - Articles: 16
11:19 AM, 18th August 2020, About 6 years ago
Heard so many bad stories about DAS.
re Rent guarantee cover, my broker told me most of the Insurance companies he deals with are NOT paying out for rent lost during Covid, due to there being a clause in most RGI policies excluding cover where the ” landlord does Not have the legal right to evict ”
Seems the Insurance companies stance to avoid Huge payouts is to claim that as Possession hearings were suspended, the landlord ‘ doesn’t have the legal right to evict ‘ ( until 24th of August )
I would be interested to hear of any landlords that have challenged such a stance with their Insurance companies with the Financial Ombudsman.
Member Since November 2013 - Comments: 24
12:02 PM, 18th August 2020, About 6 years ago
Try Mudhouse, just got a quote from them for a new tenant, price was a little higher than normal but may be worth it in the long run
Member Since February 2020 - Comments: 194
10:07 PM, 18th August 2020, About 6 years ago
If the tenant is a Head Teacher, that suggests a stable well paid job. In that case, have you considered self-insurance as a rent guarantee is just money down the drain or money for old rope.
Member Since February 2020 - Comments: 194
10:12 PM, 18th August 2020, About 6 years ago
Reply to the comment left by Chris @ Possession Friend at 18/08/2020 – 11:19
‘most RGI policies excluding cover where the ” landlord does Not have the legal right to evict “‘
If that is the case, it suggests misselling on the scale of the PPI scam, ie selling a policy that you can never claim on. Report it to the Financial Ombudsman Service. Where there’s a complaint, there’s a claim!
Member Since June 2014 - Comments: 175 - Articles: 99
3:48 PM, 24th August 2020, About 6 years ago
Hi Paul
You cannot use rent guarantee insurance while the eviction ban remains in place, so consider whether it is money well spent. If you buy it now, understand it cannot be used.
As a brokerage, we have stopped selling this rent guarantee insurance – we feel it is selling a currently worthless product and not treating customers fairly.
Rent Guarantee Insurance normally is only offered when the tenants pass financial checks and provide numerous different references/ID checks, including employer reference.
Once the eviction ban is lifted it may be worth shopping round to buy a policy but read the small print and make sure you comply with all of the requirements or it could be worthless.
Hope this helps.