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The National Landlords Association (NLA) has launched ‘NLA Rent Guarantee Insurance’ (RGI), a new insurance package and helpline support specifically designed for NLA members who face increasing pressure from tenancy disputes and rental arrears.
RGI has been developed for the NLA by specialist legal expenses provider Arc Legal Assistance (Arc Legal) through the NLA’s insurance broker HFIS plc (Hamilton Fraser Insurance).
According to the NLA, 1 in 3 landlords have tenants in arrears. The impact on landlords can mean significant time and costs chasing rent and dealing with tenant evictions or mortgage arrears which may ultimately lead to the repossession of the property.
Arc Legal provides NLA members with legal expenses insurance, rental guarantee protection for tenant and property disputes, defence of criminal prosecutions and rental cover when a tenant defaults.
Paul Berwick, Head of Marketing, NLA said: “The level of these arrears is heavily influenced by the current economic climate. Many of our members are landlords with large property portfolios who are likely to face greater exposure to rent arrears.”
Richard Finan, Director of Arc Legal said: “This is a clear indication of how this sector of the landlord market has adapted its business model to provide more support and assistance in difficult financial times.”
RGI covers six and twelve month tenancies and has been developed to complement the NLA’s new tenant referencing service. NLA members also have access to a specialist 24/7 technical legal helpline provided by Arc Legal’s panel solicitors which sits alongside the NLA’s in-house advice line for members.
This insurance package extends Arc Legal’s relationship with the NLA, which also provides professional fees and tenancy deposit protection cover to my|deposits , a joint venture between Hamilton Fraser and the NLA.