Legal & Rent Guarantee Changes
Cover enhancements
Following feedback from clients, the policy is being enhanced to include the following benefits:
Legal Expenses Cover for Removal of Squatters by Interim Possession Order
- What is covered?
You are covered for legal expenses incurred solely for the serving and enforcement of an interim possession order to remove squatters from the property, provided that:
- The property is residential.
- The property was previously lawfully occupied by tenants under a valid tenancy agreement.
- Limit of Indemnity
The insurer will indemnify you for legal expenses up to £100,000 directly related to the serving and enforcement of an interim possession order, in order to secure vacant possession of the property from squatters.
- Conditions
The following conditions must be met for this cover to apply:
- The property must be a residential property.
- The property must have been previously occupied by tenants under a valid tenancy agreement.
- The legal action must pertain specifically to the serving and enforcement of an interim possession order in accordance with applicable laws.
- What is excluded?
No cover shall be provided under this endorsement for:
- Legal costs or expenses related to the recovery of damages, compensation, or any other claims beyond the removal of squatters.
- Any legal costs for other legal procedures not directly related to the serving and enforcement of an interim possession order.
- Costs for the removal of squatters from non-residential or commercial properties.
- Legal expenses incurred in disputes involving lawful tenants, subtenants, or licensees.
- Any squatter removal costs where you have not followed the proper legal procedures for eviction.
- Claim Documentation
You must provide documentation to support the claim, including:
- Evidence of a valid tenancy agreement showing previous lawful occupation by tenants.
- Copies of the interim possession order and any related legal documents concerning its enforcement.
Replacement of Locks Following Legal Eviction by Bailiff or Sheriff
- What is Covered?
You are covered for the reasonable costs incurred in replacing the locks on the primary door of the property following the legal eviction of the tenant(s) by a court-appointed bailiff or sheriff.
- Limit of Indemnity
The insurer will indemnify you for costs up to a maximum of £250 per claim, per eviction event.
- Conditions
The following conditions must be met for the lock replacement costs to be covered under this endorsement:
- The tenant(s) must have been legally evicted by a court-appointed bailiff or sheriff in accordance with the terms of the Legal Expenses and Rent Protection Policy.
- The replacement of the locks must be necessitated as a result of the legal eviction process.
- The replacement of the locks must be carried out by a recognised and appropriately qualified locksmith.
- What is Excluded?
No cover shall be provided under this endorsement for:
- The cost of replacing locks for any reason other than a legal eviction, including but not limited to burglary, vandalism, or loss of keys.
- Any amount exceeding the £250 limit per claim, per eviction.
- Costs for locksmith services not performed by a recognised or qualified locksmith.
- Claim Documentation
You must provide documentation to support the claim, including:
- A copy of the legal eviction notice executed by a court-appointed bailiff or sheriff.
- Receipts and invoices from the recognised locksmith detailing the work undertaken and the costs incurred.
Storage of Tenant’s Goods Following Legal Eviction by Bailiff or Sheriff
- What is Covered?
You are covered for the reasonable costs incurred in the storage of the tenant’s goods for a period of up to 21 days following the legal eviction of the tenant(s) by a bailiff or sheriff.
- Limit of Indemnity
The insurer will indemnify you for storage costs of up to a maximum of £15 per day, with an overall limit of £315 per eviction event (21 days at £15 per day).
- Conditions
The following conditions must be met for the storage costs to be covered under this endorsement:
- The Tenant(s) must have been legally evicted by a court-appointed bailiff or sheriff in accordance with the terms of the Legal Expenses and Rent Protection Policy.
- The storage must be provided by a recognised and professional storage facility.
- The goods stored must belong to the evicted tenant(s) and must be stored securely for a period not exceeding 21 days.
- What is Excluded?
No cover shall be provided under this endorsement for:
- Any storage costs beyond 21 days.
- Storage costs exceeding £15 per day.
- Costs for the storage of goods that do not belong to the evicted tenant(s).
- Any liability for damage, loss, or theft of the tenant’s goods while in storage.
- Claim Documentation
You must provide documentation to support the claim, including:
- A copy of the legal eviction notice executed by a bailiff or sheriff.
- Receipts and invoices from the recognised storage facility detailing the daily storage costs and total duration of storage.
Price changes
Unfortunately, due to an average increase of 20% on monthly rental amounts, solicitors’ costs dramatically rising, and the eviction process now taking up to nine months, we are making some changes to premiums.
The policy bandings and premiums have been revised as follows (these prices include Insurance Premium Tax):
- Standalone legal expenses – £80 per annum
- Cover up to £1,250 rent per month – £215 per annum
- Cover up to £2,500 rent per month – £240 per annum
- Cover up to £3,750 rent per month – £375 per annum
- Cover up to £5,000 rent per month* – £500 per annum
*Please note, this level of cover is only available to agents with more than 50 properties on cover.
Invoice process changes
Currently, we issue a monthly statement on the 15th for all transactions from the previous month. From the 1st January 2025, invoices will be generated and sent to you at the time of purchase, which you can pay for immediately. This will provide the option to ‘pay as you buy’ and greater clarity regarding which policies have been paid for.
The monthly statement you will continue to receive on the 15th of each month will only list unpaid policies. Failure to settle the account within 21 days of receiving the statement will result in your account being automatically suspended. A 10 day grace period will be given before any policies are cancelled, with a notification sent to you by email and shown when you log in to the agent portal.
Auto payment collection
The invoice process changes won’t affect you if you pay by auto payment collection. Payments will continue to be collected by Direct Debit on the 25th of each month following receipt of your monthly statement on the 15th.
If you are not currently set up on auto payment collection but would like to be, you can sign up by completing this form.
Should you have any questions or require further clarification, please do not hesitate to contact us at 01603 649 727 or [email protected].
