Financial Security is what we all want!. | Discuss

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Financial Security is what we all want!.
01/03/2012
3:05 pm
Paul Routledge
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I was asked last week by a member why I think that Landlords rent and legal insurance is so important.

I  went on to explain to the member that as Landlords our investments can be our income, pension and our children's future and that is why we all want to protect it the best way we can. Any seasoned Landlord or Letting Agent will tell you that if your tenant has fallen into serious arrears, they normally don't catch up and will leave you very exposed to large losses.

So in this day and age why would you not spend £96  and take out a Property Let Legal Protection cover, you can not only claim for the unpaid rent, but all future rent whilst your tenant is in occupation and whilst you are seeking their notice to quit and their subsequent eviction.

We at LandlordReferencing.co.uk are landlords so fully understand that things can go wrong with tenants and when they do, we all need to be able to do damage limitation.  The way we do that is by hedging our bets against rent loss and that is why, even with the best references in the country, we still advise all of our members to insure against loss of rent and the thousands of pounds in legal costs which would be incurred to secure any necessary eviction. 

At LandlordReferencing.co.uk we understand that your rental income is the life blood of  your property portfolio and that is why it is so important for you to do everything you can to make sure the blood keeps flowing, keeping the very heart of your property portfolio pumping. So, whether you have just one property or a large portfolio, if the rents stops coming in the entire body comes to a grinding halt.

•  It is very inexpensive. Only £1.84p per week for £50,000 in cover = £96 inc tax for 12 months.

•  The policy  is instant and easy to take out.

•  Just add the premium to the rent at the beginning of the tenancy as extra security for you.

•  Protect your property, income and pension today.

When it comes to insurance and claiming, cheap is not cheerful, cheap becomes tearful!!!

To explain, as a landlord for many years I have looked at cheaper products on the market which offer less cover, but I do not believe when insuring your income and pension it is good to think that because you are getting the lowest price that you are still getting the best cover - YOU ARE NOT. 

We have put together a policy with the leading insurer DAS /das-the-key-facts/

or give me a call.

01/03/2012
3:36 pm
Cedric
Golders Green
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Very thought provoking blog Paul.

I have been very fortunate in the past not to incur great loses, but can see that it is so easy for your tenants to fail to pay on a regular basis resulting in your investments becoming seriously compromised.

£96 seems quite reasonable to me for Property Let legal cover and comes in only £16 more expensive than a ticket in the West Upper stand for a single football match at my beloved Spurs.  When you think of it on that basis the peace and mind plus security for your portfolio for £96 seems very reasonable.  

My insurances do not run out for a few months yet - May I think and I will certainly consider using your services as to be honest I am fed up with the impersonal service I have received in the past from my present insurers.

Do you have a service where I can register my interest although it is a few months away ?

01/03/2012
10:50 pm
PaulBarrett
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What RGI reference check is required by the LRS policy.

Do DAS accept the check is valid for any claim as they might try and wriggle out of a claim on the basis they say the credit check was inadequate.

02/03/2012
9:24 am
Paul Routledge
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PaulBarrett said:

What RGI reference check is required by the LRS policy.

Do DAS accept the check is valid for any claim as they might try and wriggle out of a claim on the basis they say the credit check was inadequate.

 

Hi Paul,

Great question and one that I have addressed to make sure that our policies are not just an expensive piece of paper but if it all goes wrong you can make a claim.

I know that some companies  say they allow an instant report as long as it shows no adverse credit but I have heard that when it comes to a claim as you say they “Wriggle”. So we are very clear about what we think is best and that is simple a £28 comprehensive report with Experian  and also do the lifestyle reference  with us free (which no one else offers)  to see if the tenant has not recently left their last landlord with arrears and/or damage.

The whole thing, references + rent cover including legal expenses cover for £50,000 per claim costs £124 including all the taxes etc. for the year.  You can see it through our quick link button  but the most important thing is although you may get what seems to be the same cover a bit cheaper elsewhere all the small profits go into keeping the network free and growing the membership which in turn help us all in keeping the bad tenants out rather than into buying  the MD a new Rolls Royce.Laugh

In summary £124 is £10.33 a month and that can be added to any tenancy agreement and can be paid for by the tenant before they take up tenure.  It can also be taken out for existing tenants – but a 30 day condition applies to the claim, but apart from that the policy offers the best cover on the market with no hidden excesses or clauses.

When you take out either rent protection or building and content insurance with us you are just investing into a stronger network that in turn will grow to keep you and all the other members safer together.

I hope this helps you.

Paul R

02/03/2012
12:12 pm
Sally Pritchard
Guest
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Hi Paul & Paul & Cedric,

 

I am in!  I have looked in depth at this type of insurance and quite frankly it seems like there are just a load of sharks offering lower and lower priced policies with all the references included!  In fact - one company is offering a 1 year policy for £35 including the referencing - Oh Really??!! -  I can’t fill my car up for £35 so how can someone insure my rent and legal expenses for 35 quid?.  You know what they say - if it seems like too good a deal, then it probably is.

 

Paul, for the record, I trust your company and have seen what you have done to help landlords & Agents in this Country for 2 years and all free of charge. As mentioned I have looked into this insurance and have read up on DAS insurance who seem to me to be very competent.  I understand that Experian are the best reference suppliers in the UK and you are the only real company that can check up to date payments and damage a tenant may be done.

 

SO in the words of the dragons………. I am in and I hope others support you and this fantastic site and don’t try and save a few bob to buy a useless policy.

02/03/2012
12:38 pm
Paul Routledge
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20/05/2011
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Thanks Sally,

I am with you.  I cant see how anyone can offer insurance cover which will really pay in the event of a failure + a full reference etc for that sort of money. Being an old hand in business the economics just don't work, even if you average out the average claim at a cost of Just £2000 for rent arrears, damage and legal costs, it would mean that just to cover the payouts they would have to sell over 57 policy's just to break even on payouts let alone their running costs and profits etc. The sums don't stack up.

I think this industry is in for a big shake up soon and I hear word that a few big players are being investigated by the FSA & ICO  regarding compliance on their referencing, illegal data sharing and iffy policy cover. I dont think they are impressed that one of the biggest players in the market is working on the TESCO concept of trying to stack em high and sell em cheap !! 

I don't think any insurance should or can be delivered like that as every tenant and Landlord differ and that is why we have chosen to go back to a personal service rather than a call centre serviced from MumbaiSmile 

05/03/2012
12:52 pm
Cedric
Golders Green
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15/12/2011
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Sorry Landlord Referencing I did leave a question recently but I didn't receive a reply.My Buildings 

My Buildings Insurance run out in 3 months and is there a way you can give me a nudge to remind me ?

My current Insurers think that I am an old may, well I am really but that is not the point.  My name is Cedric Randolp not Victor Meldrew...........!!!!

05/03/2012
2:08 pm
Paul Routledge
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Forum Posts: 3415
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20/05/2011
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Hi Cedric,

Sorry I have not replied until now I am so busy I have forgotten my name Laugh maybe I am Victor Meldrew " I cant beleive itYell"  

Absolutely no problem in giving you a nudge just fill out the contact form on this link new clampdown on Stamp Duty avoidance by home buyersontact-us/ and give me the call back time and I will call you nearer the time. 

Thanks for giving us a try its a great service and very personal from a crew with years of experience rather than a automated service from someone who we probably have shoes older than!

 

If you want to go through the front page here is the link again /insurance_services/

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