Is your rental income at risk?
The NRLA has partnered with Rentguard Insurance, to provide Legal Expenses & Rent Guarantee insurance. The intention of the Legal Expenses & Rent Guarantee policy is to cover rental payments if the tenants default on the rent whilst also covering the legal costs for evicting the tenants.
Please see the policy wording for the full terms and conditions that apply to the policy.
Evicting your tenants and trying to regain possession of your property can often be a costly battle. When you take out Legal Expenses & Rent Guarantee insurance with Rentguard, you off-set some of the risk attached with tenants defaulting on rental payments whilst still occupying your property.
- A 12 month policy term with an excess - the excess is defined as an amount equal to two (2) months’ Rent
- A mediation service is available during the claims process
- Up to 5 tenants can be covered on one policy (single tenancy agreement)
- Cover can be offered for an existing tenancy agreement (90 days exclusion period will apply)
The maximum amount payable in respect of an Insured Event is as follows:
- Mediation Adviser Costs: £330
- Eviction Adviser Costs: £1,250
- Maximum Monthly Rent: £1,500
- Maximum Rent payable: 6 Months or the end of the Tenancy Period whichever is the lesser
How to purchase Legal Expenses and Rent Guarantee Insurance
This product is offered in association with the NRLA Tenant Referencing service. A Quote & Buy button is displayed next to eligble tenant applications in the list of completed tenant checks
within your user account.
It is a requirement of this insurance that the policy holder carries out references before the tenants move into the property.
In the event of a claim, the responsibility lies with the insured to present the referencing documents.
All types of tenants have to be fully referenced either by NRLA Tenant Referencing or a Referencing company approved by Rentguard – these include DSS, students, self employed lets and the like.
However, for full time employed working tenants a 4 point check will suffice* (please note that the details have to be valid from the start of the tenancy agreement.)
The 4 point check is:
- Identification from the tenant, containing a clear verified photograph
- Either a utility bill or a bank statement
- Credit check; clear of CCJ’s, bankruptcies & indicating confirmation of residency
- Confirmation of employment – a written employers’ reference on company letter headed paper confirming the tenant’s permanent and current employment and that their salary is at least a multiple
of 2.5 of the tenant’s rent (the documents should be no more than one month old from the start of the tenancy)
*Please note that if the 4-point check is applied & is in place, there will be no need to do a full profile – though in the event of a claim, the responsibility lies with the insured to produce
the appropriate documents.
Please note that when a working person does not meet the above requirements or after working out their ratio of income against the rental requirement it proves insufficient:
then a full profile reference has to be carried out. This reference can only be carried out either by NRLA Tenant Referencing or a Referencing company approved by Rentguard.
Click to download Policy Wording and KeyFacts.