Landlord Buy to Let Insurance |  | |||
| ||||
Legal Expenses Insurance
Introduction to Landlords Legal Expenses Insurance - if you have decided to purchase property for buy to let purposes there are a number of buy to let insurance covers that can be purchased to help you as a landlord protect your business. Many landlords accept the minimum insurance required by the lender to satisfy the mortgage conditions and buy landlord buildings insurance (with contents added on if the property is let furnished). However, renting property should be viewed as any other business, with a range of insurances options considered to help compliment the cover for the structure of the property. For any new landlord (or experienced one for that matter) dealing with tenancy agreements and tenants and keeping up with all legal aspects of renting property can be a time consuming and daunting proposition. Many landlords choose to employ the services of a letting agent to help them with the work, but even then, there can still be problems.
Landlords Legal Expenses insurance is one such cover that many landlords overlook as it is not made compulsory by the lender, this type of insurance can help provide valuable protection, in the field of dealing with legal matters relating to the tenant and the managing of the property. Once problems occur, legal expenses relating to your buy to let property can prove to be very expensive, can you afford to protect your rights or rather can you afford not to?
Legal expenses insurance for landlords arranged via Intasure, is a product that can be attached to a buildings insurance policy and comes with a number of different sections. Following an insured event and after conformation that the claim is acceptable an amount of up to £50,000 is provided including the cost of appeals. Please be aware, that is most cases, the insurers will require you to use their solicitor and like all insurance polices, there are terms and conditions. For full details of the cover, reference must be made to the Keyfacts leaflet and policy wording, copies of both are available free of charge on request.
Legal Expenses
- Property Damage Nuisance & Trespass - this section of the policy will cover you for an event that causes visible damage to your property or anything owned by you at the property or a public or private nuisance or a trespass ( subject to excess)
- Repossession - this section will cover you in respect of your legal rights to repossess your residence that you have let as a landlord under either an assured shorthand tenancy agreement or an assured tenancy (Schedule 5, Part 1 (grounds 1-8) of the Housing Act (Scotland) 1988 or Part 1 Section 21 of the Housing act 1988 amended by the Housing Act 1996 or Part 2 Section 33 of the Housing Act (Scotland) 1988. Cover also includes your legal rights to repossess your residence that you have let to a limited company or a business for use by it's employees, where you live at the residence but have one or two written licences in force which contain termination clauses.
- Recovery of Rent Arrears - cover is provided in respect of your legal right to recover rent owed to you by the tenant or an ex tenant.
- Prosecution Defence Cover - this section of the policy will provide legal expenses cover in respect of a prosecution that arises out of you letting your residence.
Accommodation Costs - a payment of up to £75.00 per day and up to a maximum of £2250 in total if you are unable to secure possession of your residence and you are seeking possession to live at the property
Rent Indemnity - if a claim is accepted by the insurers in respect of repossession of the residence, the insurers will pay rent that is owned to you until possession is gained, provided that the rent first falls in to arrears during the period of insurance and whilst the tenant is living at the property (Once repossession has been regained, the maximum payable is 75% of the monthly rent payable for a maximum of a further 2 months and provided that you agree to re-let the property where an offer equal to or greater than 85% of the preceding rent is offered, the first month of any claim is not payable). For full details of the covers, reference must be made to the insurer’s official documentation. There are of course certain claims procedures that must be adhered to, to ensure that any claim is valid. Please also bear in mind that there must be a reasonable chance of success for the insurance company to agree to the funding of legal expenses. A fuller definition of Reasonable Prospects for success can be found in the Landlords Legal expenses insurance policy document.
Assetsure provides UK landlord buy to let insurance for buildings and contents for private landlords, letting agents and property management companies in the United Kingdom.