"With the implementation of the Renters' Rights Act, the role of rent guarantee insurance has never been more important"
- Richard Finan - Addept Insurance
Addept Insurance Services and specialist property insurance provider First2Protect have partnered to launch a flexible rent guarantee insurance product for landlords, giving borrowers the option to cover their monthly mortgage payment rather than their full rental income in the event of tenant default.
The product, a tailored version of Addept Insurance's existing Rent Protect solution, covers landlords against mortgage arrears resulting from unpaid rent, as well as the legal costs associated with eviction and repossession. First2Protect, an appointed representative of Pivotal Financial Limited, is offering the cover on both an add-on and standalone basis as part of its dedicated landlord insurance range.
The key distinction from existing products on the market is the ability to set a cover limit tied to the monthly mortgage payment. Standard rent guarantee insurance products currently cover the full rent as standard, with no option to focus protection on the mortgage payment alone. Landlords who prefer full rent cover retain that option.
"With the implementation of the Renters' Rights Act, the role of rent guarantee insurance has never been more important," said Richard Finan, managing director of Addept Insurance.
"Against a backdrop of anticipated increases in levels of rent arrears and eviction costs, which will inevitably result in an upward pressure on rent guarantee insurance premiums, our partnership with First2Protect provides landlords with innovative and affordable protection."
Mark Batten, managing director of First2Protect, pointed to the timing of the launch as particularly relevant given the shifting regulatory environment.
"Addept Insurance's understanding of the new and emerging risks facing landlords from the Act makes them a perfect partner to enable us to respond to the changing private rental sector landscape providing our landlord customers with a solution that ensures continued affordability and protection against the elements risk exposure of most concern to them," he said.
Addept Insurance offers a range of legal expenses and ancillary insurance products designed to support brokers and other intermediaries in responding to shifting risk and regulatory demands.
