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Why is legal insurance for landlords important?

 

While being a landlord can be an effective way of investing money, it is not without its problems. Unfortunately, all landlords are exposed to the risk of a tenant falling behind with their rent, refusing to leave at the end of a tenancy, or causing damage to the property.

Issues like recovering rent arrears or evicting tenants can be both stressful and complicated to deal with. We can offer your landlord customers effective solutions to these kinds of issues with our range of products tailored to their needs.

Also available: Landlord Emergency

Responding to emergencies such as burst pipes and heating breakdowns in rented property can also be expensive and time-consuming to deal with. Our Landlord Emergency Insurance offers landlords and tenants peace of mind, with round-the-clock repairs, labour and call-out fees covered by a contractor.

Also available: Rent Guarantee

We also offer Rent Guarantee to protect landlords if tenants fail to pay rent, meaning your clients can maintain cash flow and manage legal disputes efficiently and with ease. This product is sold alongside a Landlords Insurance policy as either an opt-in (where the customer pays a premium for the product), on a mandatory basis (where the cost of this cover is already included in the main product premium), or as a stand-alone policy.

 
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What does Landlord Legal Insurance Cover?

  • Repossession

    Legal action taken to repossess a property, often due to unpaid rent.
  • Property disputes

    Issues involving property damage which affects landlord’s right to use or enjoy their land.
  • Recovery of rent

    Pursuing legal means to recover unpaid rent owed by a tenant.
 

And we can help with:

  • Property-related prosecution defence

    Providing a legal defence if you’re prosecuted for breaches related to property laws or housing regulations.
  • Alternate accomodation

    Provision of alternative accommodation and storage costs while trying to gain repossession of the property.
 

How our Landlord Legal Insurance can help

 
 

Repossesion

Our policyholder contacted us for legal advice after their tenant fell into arrears and continued to ignore reminders for rental income payment.

We directed the policyholder to our landlord legal services website to download the necessary legal notice requiring the tenant to quit the rental unit. Unfortunately, the tenant ignored the legal notice and the matter escalated.

We instructed lawyers to obtain a court order for repossession of the rental property and paid the lawyer’s costs and the court fee, as covered under their policy.

 
 
 

Recovery of rent

Our landlord insurance policyholder contacted us after their tenant failed to pay rental income for three months and then vacated the rental property.

The policyholder had tried to pursue the tenant, but was not getting any response. We approved the insurance claim under their rental property insurance, which includes loss of rental income coverage, and passed the matter to a panel solicitor. They were able to negotiate a payment plan with the tenant, who was experiencing financial losses and cashflow issues.

The policyholder received repayment over the following six months, plus interest, and ARAG settled the legal fees incurred by the solicitor.

 

Rent indemnity

A policyholder contacted us when a tenant went into rent arrears. As the policyholder had complied with the insurance policy terms, we agreed to pay the rental income arrears that had been incurred while repossession of the rental property was being sought, together with 75% of the loss of rental income for a further two months following repossession.

This support was provided under their landlord insurance policy.

 
 
Legal and Tax Advice
Legal and Tax Advice


Your customers can call our legal advice helpline and get immediate advice on all tenancy-related legal problems within UK law 24 hours a day, 365 days a year. They will also have access to our tax advice line, open 9am-5pm, Monday to Friday (except bank holidays), which will answer your personal tax queries subject to UK laws. The query will be dealt with by a qualified specialist who is experienced in handling legal and tax-related matters.

 
Legal Documents
Legal Documents


Our policies give free access to our landlord legal services website, which provides a range of useful tools. Policyholders can get guidance on a wide range of legal topics from our law guides, our videos, and claims examples that demonstrate how our cover can help. The website also provides a comprehensive range of tenancy-related legal documents, including Section 8 and Section 21 notices and letters to demand unpaid rent.

 

News & Press

Please click here to be directed to our Product Oversight and Governance pages

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