Rent Protection & Rent Indemnity

NEW: First Month of Tenancy Rent Protection

A brand‑new section of cover has been introduced to address a gap created by the Renters’ Rights Act. Now that a tenancy must be executed before the first month’s rent is paid, this new section covers the risk of the tenant taking possession but not paying that first month’s rent.

• Covers the first month’s rent if a tenant takes legal possession but fails to pay after keys are issued
• Applies without needing three months’ arrears or eviction grounds
• Operates independently of later eviction processes

What this means:
Landlords and agents are now protected if a tenant moves in but doesn’t pay the first month’s rent — providing peace of mind from day one.

Rent Indemnity Payments Now Start Sooner

Core rent arrears cover remains in place, but with a significant improvement to payment timing.

• Rent payments now begin within 30 days of claim acceptance
• No need to wait until eviction becomes legally viable under Section 8
• Cover applies as long as the tenant remains in the property when the claim is notified

Important changes to note:

• Claims must be reported within 60 days of the first missed rent
• Claims reported 31–60 days late incur a one‑month rent excess
• Claims reported after 60 days are not accepted

What this means:
You’ll get paid sooner than before — but only if arrears are reported promptly.

Post‑Possession Rent & Property Damage

Improved Post‑Possession Rent Cover

If a property can’t be relet straight away after possession because of tenant damage, agents/landlords will now receive full rent cover for the first month post-vacant possession – with reduced cover for the following 2 months. The policy now better reflects how quickly most properties are re‑let after possession.

• 100% of rent for the first month after vacant possession
• 75% for month two
• 50% for month three

Previously, cover was fixed at 75% for up to three months.

What this means:
Landlords receive full rent cover during the most common void period, improving cashflow after possession.

NEW: £1,000 Deposit Top‑Up for Damage

A new enhancement recognises rising repair and contractor costs.

• Pays up to £1,000 where the tenant’s deposit is insufficient to cover damage

What this means:
Extra financial protection when deposits no longer stretch far enough to cover repairs.

Legal Cover & Dispute Thresholds

Repossession Clarifications

• Rent‑related repossession cover has been moved under Rent Protection
• Costs for reissuing incorrectly served notices are excluded

What this means:
This is a clarification rather than a reduction in cover — correct notice service remains essential.

Higher Minimum Dispute Values

To improve the efficiency of actions taken, legal action to recover unpaid rent is only covered where the amount owed is large enough to justify the cost of pursuing it. Smaller amounts are no longer covered. Therefore several legal sections now apply only to higher‑value claims:

• Rent recovery: now the greater of £1,000 or one month’s rent
• Property damage disputes: minimum increased from £500 to £1,000
• Contract disputes: minimum increased from £100 to £1,000

What this means:
The policy is focused on disputes where legal action is proportionate; smaller claims are no longer covered.

Witness Expenses Capped

If a landlord or their employee needs to attend court as part of a claim, the policy will contribute up to £1,000 towards lost earnings.

• Witness expenses are now capped at £1,000
• Previously uncapped

What this means:
A reasonable contribution remains, but unlimited cover has been removed.

Alternative Accommodation & Storage

Higher Daily Limits

If landlords need temporary accommodation or storage while a covered claim is ongoing, the policy now pays higher daily amounts to reflect current costs.

• Alternative accommodation: £250 per day (up from £175)
• Storage costs: £50 per day (up from £15)
• Up to 30 days for each

What this means:
Better financial support if landlords need temporary accommodation or storage during a covered claim.

Policy Conditions & Eligibility Changes

NEW: 60‑Day Waiting Period for Mid‑Tenancy Policies

If insurance is taken out after a tenancy has already started, claims can’t be made for issues that arise in the first 60 days. So, where cover starts after a tenancy has already begun:

• Claims arising in the first 60 days are excluded
• Exception applies where continuous equivalent cover was in place previously

What this means:
Prevents cover being taken out when a known issue is already developing.

Affordability Evidence & Rent Increases Clarified

Affordability requirements are now more clearly defined:

• Tenants (and guarantors) must earn 30× monthly rent**
• Acceptable documentary evidence is clearly specified
• Rent increases capped at 10% during the policy term
• Larger increases require re‑referencing

What this means:
Clearer rules on affordability checks and limits on rent increases during the policy period.

Claims Handling Commitments

NEW: 30‑Day Payment Commitment

Providing the notification date is within 60 days of the first rent arrears, the insurer has committed to paying the first rent indemnity payment within 30 days of the claim acceptance date (subject to the excess).

• First rent indemnity payment made within 30 days of claim acceptance
• Ongoing payments processed within 30 days of receiving an up‑to‑date rent log

What this means:
Greater certainty and faster cashflow during active claims.

Incident Coverage

Policy Alignment with your Managed Service

Some additional insured incidents under this policy (incidents 4-10) apply only where your management agreement with the landlord includes responsibility for these scenarios:

• Alternative Accommodation and Storage Costs
• Property Damage Recovery
• Nuisance and Trespass
• Defence of Criminal Prosecutions
• Contract Disputes
• Tax Enquiries
• Witness Expenses

What this means:
This ensures the policy aligns with the services you provide and avoids cover applying where you don’t have contractual responsibility.