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Rental Income and Legal Expenses for Landlords
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Rentassured is a exciting new insurance policy that provides protection for Landlords in the event of a tenant defaulting on the rent that is due to a Landlord. The policy is targeted at Landlords who let out residential property such as apartments, houses etc.
There are two main aspects to the cover provided.
1. The policy will pay the monthly rent (sum insured specified) in the event the tenant stops paying the rent and refuses to vacate the property.
2. Legal advice and expenses up to €25,000 to provide access to a Solicitor to help deal with any tenancy dispute and to cover their cost for attendance at PRTB hearing/tribunals. Cover is also provided for any such dispute which falls outside the remit of the PRTB or where your legal advisor (solicitor) and the Insurers agree that a PRTB decision is unjust.
CLICK HERE TO GET A QUOTE
Rentassured is a exciting new insurance policy that provides protection for Landlords in the event of a tenant defaulting on the rent that is due to a Landlord. The policy is targeted at Landlords who let out residential property such as apartments, houses etc.
There are two main aspects to the cover provided.
1. The policy will pay the monthly rent (sum insured specified) in the event the tenant stops paying the rent and refuses to vacate the property.
2. Legal advice and expenses up to €25,000 to provide access to a Solicitor to help deal with any tenancy dispute and to cover their cost for attendance at PRTB hearing/tribunals. Cover is also provided for any such dispute which falls outside the remit of the PRTB or where your legal advisor (solicitor) and the Insurers agree that a PRTB decision is unjust.
CLICK HERE TO GET A QUOTE
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Rent Guarantee & Legal Expenses Insurance - FAQ's
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Rentassured is designed to provide a Landlord with the reassurance that while their property has a Tenant the rent will be always be paid and that where a tenancy dispute arises they will have access to free professional legal advice to help deal with the issue (both subject to the terms, conditions and exclusions of this insurance) thereby reducing the financial risk, stress and hassle of being a Landlord.
Some of the Frequently Asked Questions are answered below. Click on the relevant Question for more information.
  What is the Landlord covered for? |
This insurance covers:
1. The policy will pay the monthly rent (sum insured specified) in the event a Tenants stop paying and
refuse to vacate the property. The first month of default is not covered (the Landlord retains the
deposit collected).
The monthly rent will be paid until such time as the Tenants are evicted or for 12 months, whichever
occurs first. When the Tenant is evicted the policy will pay an additional month rent to allow time for
any necessary property repairs and re-letting.
2. Legal advice and expenses up to €25,000 to provide access to a Solicitor to help deal with any tenancy dispute and to cover their cost for attendance at PRTB hearings/tribunals. Cover is also provided for dispute which falls outside the remit of the PRTB or where the Landlord’s legal advisor (solicitor) and ours agree that a PRTB decision is unjust.
Where this insurance is taken out within 21 days of a new Tenancy the policy benefits will apply
from the inception date of this insurance.
Where this insurance is taken out in respect of an existing Tenancy the following exclusions will apply:
• Any claim arising within the first 62 days of cover incepting
• Any claim where there is a history of arrears of more than 7 days in the previous 12 months; or
• Any claim where the Insured knew or ought to have known that a default was likely.
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| What is not Covered? |
This insurance will not cover:
1) The first month’s loss of rent. The Landlord should retain the deposit to offset this loss.
2) Claims arising in the first 62 days of the policy unless the policy was taken out within 21 days of the
tenancy agreement being signed.
3) Any claim where before the start of the policy the Landlord was aware or should have been aware, that a claim was likely to be made.
4) Claims reported to the insurers more than 90 days after the date the Landlord should have known that a claim was likely.
5) Any claim caused directly by some action or failure by either the Landlord or their Letting/Managing Agent (example – unreasonably visiting the property without the Tenants consent or failing to resolve a rat infestation or broken heating system in a reasonable period of time).
6) Tenancies
a) not registered with the Private Residential Tenancies Board (PRTB)
b) where there is no Tenancy Agreement
c) where referencing requirements (see below) are not met
7) Properties let to Tenants not in full time employment. Social Welfare Tenants may be covered where the housing benefit is paid directly to the Landlord. Students may be covered where there is a guarantee provided by a parent.
8) Legal costs incurred prior to written confirmation from the insurers that the claim has been accepted or legal costs for more than the insurers have given their prior approval.
9) Any compensation a Landlord may be ordered to pay a Tenant.
The above are the main exclusions; additional exclusions are contained in the policy document (a copy of which is available on request).
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| What type of properties can be covered? |
Any self-contained:
• house;
• apartment;
• flat;
• studio apartment; or
• bed-sit
rented out under a single tenancy agreement, and located in the Republic of Ireland.
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| What if I have a house rented out in multiple units? |
Each unit must be separately insured and comply with the conditions of this insurance. All units must be insured and identifiable by the relevant tenancy agreement. |
| What types of property cannot be covered? |
Any:
• owner-occupied accommodation;
• social housing;
• long occupation equity tenancies
• business lettings
• holiday lettings
• “rent a room” or other arrangements whereby the Landlord also resides in the dwelling
• tenancy where the Tenant is receiving a rent allowance/subsidy from the Dept of Social Welfare
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| Must the property be registered by the PRTB? |
Yes. Note that it is a condition of this insurance that all PRTB requirements are complied with. If the property is not yet registered the Landlord may take out the cover however the Landlord must also apply for registration with the PRTB. NB - No cover will apply under this insurance if the property is not registered at the time a claim is incurred. |
| What type of Tenants can be covered? |
Any Tenant as long as they are in full-time employment. Social Welfare and Student Tenants must be referred to Rentassured for cover. Social Welfare Tenants may be accepted for cover where the Housing Benefit is paid directly to the Landlord. Students may be accepted where the Landlord gets a parental guarantee. |
| Do Tenants need references? |
Yes, the Landlord must provide:
• a reference from the Tenant’s employer confirming they are employed full-time, or an Accountant
reference if self employed; and
• a reference from a previous Landlord if this is not the Tenant’s first letting; and
• proof of ID – a copy of a passport or driving licence
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| Does the Landlord need a tenancy agreement? |
Yes. There must be a written tenancy agreement signed by the Tenant and Landlord. |
| Does the Landlord need to complete a Proposal Form? |
A Statement of Fact is used instead of a Proposal Form. This must be given to the Landlord with the policy
document. This document will be required to validate any claim.
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| Does the Landlord need to send the Statement of Fact, references and the Tenancy Agreement to Rentassured? |
These documents will only be required at the time of a claim. The Landlord must be advised to keep these documents safe in order to validate any claim. |
| What happens if the Tenant stops paying their rent? |
Within 14 days of the default the Landlord must write (via registered letter) to the Tenant advising that they are in breach of their tenancy agreement and that if they fail to pay the rent arrears in full within 14 days that they will be served with a notice of termination.
If after this 14 day period the arrears have not been paid a notice of termination must be served (this must be in compliance with the Residential Tenancies Act 2004). Please contact us and we will arrange for our Legal Adviser to advise on drafting this notice.
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| Does the cover under the policy expire when the Tenancy Agreement expires? |
No. Claims incurred during the period of the Tenancy Agreement will be paid for up to 12 months even if the Tenancy Agreement expires during the claim period. |
| What happens if the Tenants change during the period of insurance? |
The policy will cover the new Tenants subject to their meeting the same referencing requirements. The Landlord must get a new Tenancy Agreement and re-register the tenancy with the PRTB. We do not need to be notified unless there is a material change in the risk. |
| How Does the Landlord make a claim? |
The Landlord must contact us for a claim form. In addition to the claim form the Landlord will be asked to send copies of the following to us:
• the tenancy agreement
• references and guarantee letters as appropriate
• State
• the Notice of Termination
• the tenancy PRTB number.
If the next month’s rent is not paid, contact us to confirm Tenants are still in occupation, and we will issue payment by credit transfer into your account within 30 days, as long as above is all in order.
We will continue payments monthly (on the Landlord’s notification) until such time as the Tenants have vacated the property, up to a maximum of 12 months.
The Landlord must keep us up-to-date with any developments and send us copies of all correspondence to and received from the PRTB and Tenant.
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| Are the proceeds of any claim payment taxable? |
If the Landlord has a tax liability on the rental income which the Landlord derives from the letting of the property, the proceeds of any claim payment under this policy are likely to incur a similar liability.
The Landlord’s Accountant or tax advisor will advise them on their eligibility to offset the cost of this insurance premium, as an expense against their rental income, which at a marginal rate of 41% could reduce the net cost of this insurance.
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| Who underwrites this insurance? |
The insurance cover is placed via Securus Insurance Ltd and is underwritten by LAMP Insurance Company Limited. LAMP Insurance Company Limited are:
• a subsidiary of Lamp Group Limited who are authorised in the UK by the Financial Services Authority
• licensed in Gibraltar
• authorised by the Irish Financial Regulator to carry on Non-Life insurance business into Ireland on a
Freedom of services basis.
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Rentassured is designed to provide a Landlord with the reassurance that while their property has a Tenant the rent will be always be paid and that where a tenancy dispute arises they will have access to free professional legal advice to help deal with the issue (both subject to the terms, conditions and exclusions of this insurance) thereby reducing the financial risk, stress and hassle of being a Landlord.
Some of the Frequently Asked Questions are answered below. Click on the relevant Question for more information.
| What is the Landlord covered for? |
This insurance covers:
1. The policy will pay the monthly rent (sum insured specified) in the event a Tenants stop paying and
refuse to vacate the property. The first month of default is not covered (the Landlord retains the
deposit collected).
The monthly rent will be paid until such time as the Tenants are evicted or for 12 months, whichever
occurs first. When the Tenant is evicted the policy will pay an additional month rent to allow time for
any necessary property repairs and re-letting.
2. Legal advice and expenses up to €25,000 to provide access to a Solicitor to help deal with any tenancy dispute and to cover their cost for attendance at PRTB hearings/tribunals. Cover is also provided for dispute which falls outside the remit of the PRTB or where the Landlord’s legal advisor (solicitor) and ours agree that a PRTB decision is unjust.
Where this insurance is taken out within 21 days of a new Tenancy the policy benefits will apply
from the inception date of this insurance.
Where this insurance is taken out in respect of an existing Tenancy the following exclusions will apply:
• Any claim arising within the first 62 days of cover incepting
• Any claim where there is a history of arrears of more than 7 days in the previous 12 months; or
• Any claim where the Insured knew or ought to have known that a default was likely.
|
| What is not Covered? |
This insurance will not cover:
1) The first month’s loss of rent. The Landlord should retain the deposit to offset this loss.
2) Claims arising in the first 62 days of the policy unless the policy was taken out within 21 days of the
tenancy agreement being signed.
3) Any claim where before the start of the policy the Landlord was aware or should have been aware, that a claim was likely to be made.
4) Claims reported to the insurers more than 90 days after the date the Landlord should have known that a claim was likely.
5) Any claim caused directly by some action or failure by either the Landlord or their Letting/Managing Agent (example – unreasonably visiting the property without the Tenants consent or failing to resolve a rat infestation or broken heating system in a reasonable period of time).
6) Tenancies
a) not registered with the Private Residential Tenancies Board (PRTB)
b) where there is no Tenancy Agreement
c) where referencing requirements (see below) are not met
7) Properties let to Tenants not in full time employment. Social Welfare Tenants may be covered where the housing benefit is paid directly to the Landlord. Students may be covered where there is a guarantee provided by a parent.
8) Legal costs incurred prior to written confirmation from the insurers that the claim has been accepted or legal costs for more than the insurers have given their prior approval.
9) Any compensation a Landlord may be ordered to pay a Tenant.
The above are the main exclusions; additional exclusions are contained in the policy document (a copy of which is available on request).
|
| What type of properties can be covered? |
Any self-contained:
• house;
• apartment;
• flat;
• studio apartment; or
• bed-sit
rented out under a single tenancy agreement, and located in the Republic of Ireland.
|
| What if I have a house rented out in multiple units? |
Each unit must be separately insured and comply with the conditions of this insurance. All units must be insured and identifiable by the relevant tenancy agreement. |
| What types of property cannot be covered? |
Any:
• owner-occupied accommodation;
• social housing;
• long occupation equity tenancies
• business lettings
• holiday lettings
• “rent a room” or other arrangements whereby the Landlord also resides in the dwelling
• tenancy where the Tenant is receiving a rent allowance/subsidy from the Dept of Social Welfare
|
| Must the property be registered by the PRTB? |
Yes. Note that it is a condition of this insurance that all PRTB requirements are complied with. If the property is not yet registered the Landlord may take out the cover however the Landlord must also apply for registration with the PRTB. NB - No cover will apply under this insurance if the property is not registered at the time a claim is incurred. |
| What type of Tenants can be covered? |
Any Tenant as long as they are in full-time employment. Social Welfare and Student Tenants must be referred to Rentassured for cover. Social Welfare Tenants may be accepted for cover where the Housing Benefit is paid directly to the Landlord. Students may be accepted where the Landlord gets a parental guarantee. |
| Do Tenants need references? |
Yes, the Landlord must provide:
• a reference from the Tenant’s employer confirming they are employed full-time, or an Accountant
reference if self employed; and
• a reference from a previous Landlord if this is not the Tenant’s first letting; and
• proof of ID – a copy of a passport or driving licence
|
| Does the Landlord need a tenancy agreement? |
Yes. There must be a written tenancy agreement signed by the Tenant and Landlord. |
| Does the Landlord need to complete a Proposal Form? |
A Statement of Fact is used instead of a Proposal Form. This must be given to the Landlord with the policy
document. This document will be required to validate any claim.
|
| Does the Landlord need to send the Statement of Fact, references and the Tenancy Agreement to Rentassured? |
These documents will only be required at the time of a claim. The Landlord must be advised to keep these documents safe in order to validate any claim. |
| What happens if the Tenant stops paying their rent? |
Within 14 days of the default the Landlord must write (via registered letter) to the Tenant advising that they are in breach of their tenancy agreement and that if they fail to pay the rent arrears in full within 14 days that they will be served with a notice of termination.
If after this 14 day period the arrears have not been paid a notice of termination must be served (this must be in compliance with the Residential Tenancies Act 2004). Please contact us and we will arrange for our Legal Adviser to advise on drafting this notice.
|
| Does the cover under the policy expire when the Tenancy Agreement expires? |
No. Claims incurred during the period of the Tenancy Agreement will be paid for up to 12 months even if the Tenancy Agreement expires during the claim period. |
| What happens if the Tenants change during the period of insurance? |
The policy will cover the new Tenants subject to their meeting the same referencing requirements. The Landlord must get a new Tenancy Agreement and re-register the tenancy with the PRTB. We do not need to be notified unless there is a material change in the risk. |
| How Does the Landlord make a claim? |
The Landlord must contact us for a claim form. In addition to the claim form the Landlord will be asked to send copies of the following to us:
• the tenancy agreement
• references and guarantee letters as appropriate
• State
• the Notice of Termination
• the tenancy PRTB number.
If the next month’s rent is not paid, contact us to confirm Tenants are still in occupation, and we will issue payment by credit transfer into your account within 30 days, as long as above is all in order.
We will continue payments monthly (on the Landlord’s notification) until such time as the Tenants have vacated the property, up to a maximum of 12 months.
The Landlord must keep us up-to-date with any developments and send us copies of all correspondence to and received from the PRTB and Tenant.
|
| Are the proceeds of any claim payment taxable? |
If the Landlord has a tax liability on the rental income which the Landlord derives from the letting of the property, the proceeds of any claim payment under this policy are likely to incur a similar liability.
The Landlord’s Accountant or tax advisor will advise them on their eligibility to offset the cost of this insurance premium, as an expense against their rental income, which at a marginal rate of 41% could reduce the net cost of this insurance.
|
| Who underwrites this insurance? |
The insurance cover is placed via Securus Insurance Ltd and is underwritten by LAMP Insurance Company Limited. LAMP Insurance Company Limited are:
• a subsidiary of Lamp Group Limited who are authorised in the UK by the Financial Services Authority
• licensed in Gibraltar
• authorised by the Irish Financial Regulator to carry on Non-Life insurance business into Ireland on a
Freedom of services basis.
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Rental Income & Legal Expenses - Protection for Landlords
No matter how well your Tenants are vetted there is unfortunately no guarantee that they will continue to pay their rent, and to legally evict them can take up to a year and in some cases longer. Tenants’ circumstances can change for many reasons,such as:
• Accident or illness
• Breakdown of a relationship
• Unemployment
….or they could just be that “Tenant from Hell”!
Regardless of the reason, the consequences can be very serious:
• You will still have to pay the mortgage with no rental income
• Your personal finances will suffer
• Mortgage arrears will adversely affect your credit rating and future borrowings
• If your investment is contributing towards your pension your retirement income will suffer
• The financial pressures and dealing with a tenancy dispute can cause significant stress.
Rental Income & Legal Expenses - Protection for Landlords
No matter how well your Tenants are vetted there is unfortunately no guarantee that they will continue to pay their rent, and to legally evict them can take up to a year and in some cases longer. Tenants’ circumstances can change for many reasons,such as:
• Accident or illness
• Breakdown of a relationship
• Unemployment
….or they could just be that “Tenant from Hell”!
Regardless of the reason, the consequences can be very serious:
• You will still have to pay the mortgage with no rental income
• Your personal finances will suffer
• Mortgage arrears will adversely affect your credit rating and future borrowings
• If your investment is contributing towards your pension your retirement income will suffer
• The financial pressures and dealing with a tenancy dispute can cause significant stress.
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