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I have loss of rent cover and my client has left the property owing me money. Can I claim?

Unfortunately, no you cannot. If your tenants were forced to vacate your property as a result of an insured risk, your let property insurance may offer you contributions towards your loss of rental income and emergency accommodation expenses for your tenants.

However, tenants fleeing leaving large rent arrears would not be covered under those clauses.

Many landlord insurance policies, including those offered by Cover4LetProperty, include provisions for compensating for lost rental income. However, it’s important to understand that this compensation typically applies to income lost due to severe insured events, such as a significant fire or flood rendering your property temporarily uninhabitable and unrentable pending repairs.

The cover for loss of rental income is usually limited, either by a specified time period or a predetermined amount, often calculated as a percentage of the total sum insured under your primary landlord insurance policy.

It’s crucial to note that these compensation provisions do not cover instances where:

  • tenants withhold rent due to disputes with you as the landlord;
  • tenants accrue rental arrears due to reasons such as accidents, illnesses, pregnancy, unemployment, or redundancy;
  • tenants abscond, leaving behind unpaid rent;
  • you are unable to recover unpaid rent from a deposit held by a registered deposit protection company, even after attempting to do so.

Therefore, your landlord insurance typically does not offer recourse for recovering rent arrears. Rent guarantee insurance, however, is a separate product that you can purchase alongside your landlord insurance. In the event of a tenant falling into arrears or vacating the property, rent guarantee insurance serves as your primary means of defence.

Optional insurance options – Residential let legal expenses and optional rent protection

At Cover4LetProperty we are pleased to offer optional, additional cover to your let insurance property.

Our landlord legal protection insurance provides you with comprehensive cover for your legal costs (up to set amounts) at what we believe is a competitive price, offering you peace of mind.

Additionally, our rent guarantee insurance offers reassurance should your tenant defaults on rent payments or absconds, by providing compensation up to specified limits.

Key benefits of our residential let legal expenses and optional rent protection insurance policies include:

  • available as a standalone policy to complement existing residential let property insurance cover;
  • cover for loss of rent up to monthly policy limits or until vacant possession is obtained;
  • reimbursement for lost salary or wages incurred while attending court or tribunal hearings as a witness or defendant, subject to policy limits;
  • legal costs covered for exercising your rights to evict individuals not authorised to be on the property, excluding tenants with permission;
  • cover applicable to all residential tenant types, including flats;
  • our policies not only compensate for lost rental income but also offer generous legal protection cover, including legal costs (up to set limits) associated with recovering rental arrears from tenants awaiting eviction or those who have absconded.

Investing in our residential let legal expenses and optional rent protection insurance ensures you are prepared for unforeseen circumstances and protects your interests as a landlord.

How can I make sure my tenant pays the rent?

Although there is no guaranteed method of avoiding such things happening, it is always highly advisable to move quickly to deal with any non or late payment of rent. Whatever might have been the case in the past, today tenant eviction can be undertaken relatively quickly and smoothly – providing you make sure you comply with all required legal processes.

You should never, of course, use any form of direct or indirect threat with your tenants, unless it conforms to the law.

For example, formally notifying them of your intention to seek an eviction notice might be considered to be legal at the appropriate stage. By contrast, refusing to attend to an emergency repair until they paid your rent arrears might not be legal.

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