Renters’ Rights Act: Time for the Rent Guarantee Insurance market to achieve its full potential

The Renters' Rights Act - an opportunity for Rent Guarantee Insurance

The toing and froing is over, and the Renters’ Rights Bill has received Royal Assent.  

As we wait to hear about the implementation timetable for the most significant changes to the private sector in England and Wales, now is the time to help your landlord customers prepare and protect themselves against rent arrears and eviction delays.

The Act, delays in the court system and resourcing issues in the bailiff service are all pointing to the need for an affordable and responsive solution that can help landlords mitigate increased risks.

These factors combined with the proposed use of a Section 8 notice for evictions, the increased threshold for the level of arrears and the increase in notice periods, will all place financial pressure on landlords who, in the face of a defaulting tenant, could end up facing three months without rent before being able to start repossession proceedings.

So, how can rent guarantee insurance respond to this evolving challenge for landlords? During COVID times when evictions were banned and the courts were closed, we saw rent guarantee insurers broaden cover and increase the cost of the product. The question now must be in an environment where levels of rent arrears and evictions are expected to increase significantly, is this ‘enriched’ product going to provide the support landlords need at an affordable price?

Landlords require more choice with straightforward and affordable protection to mitigate the risks that will emerge in this new era for the private residential sector. If the established products offer “too much for too much” then a more ‘back to basics’ approach will enable landlords to access the cover, they really need.

Addept Insurance’s Rent Protect ‘Essentials’ solution is a low-cost alternative Legal Expenses & Rent Guarantee Insurance providing the core levels of cover needed to enable landlords to protect themselves against unpaid rent and the legal fees associated with the eviction and repossession of their property.

Rent Protect ‘Essentials’ provides:

• £50,000 cover limit per insured event for repossession and eviction of squatters.

• Up to £2,500 per month to cover rent arrears for a maximum of 12 months.

• Available: -

o   as an add-on to a landlord’s buildings insurance policy, or

o   on a standalone basis, or

o   to letting agents seeking to reinsure a rental warranty they have provided to their landlords under their management service

• 24-hour Legal Helpline providing advice on any legal matter relating to residential landlord activities.