RENTAL FRAUD DEFENCE
HOW CAN YOU LOOK AFTER THEO?
Theo had recently let a two-bedroom flat to Jasmine. The Assured Shorthold Tenancy agreement included a clause forbidding sub-letting. Jasmine passed all the necessary checks and, initially, paid rent on time.
However, unbeknown to Theo, Jasmine had started to market the flat on a short-term rental site as a “luxury serviced apartment.” Guests were coming and going every few days causing disruption to Theo’s neighbours. Jasmine was illegally sub-letting the flat, breaching the building’s lease conditions.
Theo only became aware when visiting the property for a routine inspection. He found strangers occupying the property and Jasmine was nowhere to be seen. Her actions had also invalidated Theo’s landlord’s insurance policy and put him at risk of enforcement from the freeholder for breach of lease. Theo was facing a costly legal process to try and deal with the whole matter and its impact.
PROTECTING CUSTOMERS LIKE THEO
While Theo had access to traditional landlords’ legal expenses insurance, he was advised the policy did not provide protection against the legal fees a landlord would incur to deal with illegal sub-letting. The standard landlord buildings policy also does not provide cover for an attempt to steal the title of a property.
Illegal sub-letting and title fraud are a growing issue for the UK residential property sector. Tenants can profit significantly from unauthorised sub-letting while exposing landlords to financial losses, legal liability, and potential lease or licensing breaches, even when the landlord has followed all correct letting procedures.
Theo would be protected if he had access to our Rental Fraud Defence insurance product which is designed to help landlords pay legal fees when they become a victim of illegal sub-letting, title, or identity fraud.
Addept Insurance’s Rental Fraud Defence covers up to £25,000 in legal costs to:
Cover reinstatement of a property’s title, boundary or rights of way.
Regain lawful possession of a property if it is let or sold.
Dealing with organisations advertising the insured property for let or sale or where credit, goods or services have been applied for including those associated with County Court Judgements.
Apply to the Land Registry for the reinstatement of title or restrictions under the Land Registration Act 2002 or to be placed on the CIFAS Protective Register.
Liaise with mortgage and loan providers and credit agencies
Cover can be provided as an add-on or can be embedded in an underlying landlord’s buildings insurance policy. Option to include Title Guardian, 24/7 digital anti-fraud property monitoring.