Rent and legal protection insurance for landlords is the product letting agents sell as a single line on the management agreement, and it is really two covers working on the same problem. Rent protection pays the arrears. Legal protection funds the possession action that stops them accruing. Neither is much use without the other, which is why they are sold together.
Why the two halves need each other
Rent protection without legal protection pays for a while and leaves you unable to afford the action that ends the tenancy. Legal protection without rent protection gets the property back and leaves the arrears unpaid. Together they convert a defaulting tenant from a financial emergency into an administrative process with a known end.
What the agent's version usually includes
A stated number of months of rent, legal costs for possession up to a limit, and often a reduced percentage for a period after possession while the property is relet. Agents' products are frequently the same underwriters' policies sold with the referencing built into the service, which is a genuine convenience because referencing is the condition most often failed.
The conditions, which do not change with the seller
Referencing to the insurer's standard before the tenancy. A written tenancy. The deposit protected within the statutory period with prescribed information served. The compliance documents given to the tenant. Notification of arrears within the stated window. Buying through an agent does not soften any of these; it usually just means somebody else does them.
Buying it yourself instead
Perfectly possible, and usually cheaper, provided you will actually meet the referencing standard. The question to ask honestly is whether you will run credit checks, verify income, take up a previous landlord reference and reference a guarantor properly. If the answer is no, the agent's version is worth its margin.
Questions people ask about rent and legal protection insurance for landlords uk
What does rent and legal protection cover?
Arrears up to a stated number of months, and the legal costs of recovering possession, often with a reduced percentage continuing for a period after possession.
Do I have to buy it through my letting agent?
No. It is usually cheaper bought directly, provided you will meet the referencing standard yourself.
Why do claims fail?
Almost always referencing that was not done to the standard required, or tenancy paperwork that does not support a valid possession notice.
Does it cover damage to the property?
No. That is the landlord policy's accidental and malicious damage sections.