The following claims example demonstrates the benefits of our Landlords Legal Expenses and Rent Guarantee Insurance policy.

The policyholder let his small terraced house to a professional couple under a 12 month Assured Shorthold Tenancy Agreement.

The tenants had been making regular rental payments for a period of 4 months, however they had failed to pay their rent in the 5th month. The policyholder was advised that this was due to them being out of the country, however the tenants failed to pay the next rent due and the policyholder was unable to make further contact.

The policyholder made a claim to Arc Legal for the rent due and to regain possession of the property.

A panel solicitor was instructed, who in turn appointed an enquiry agent to visit the property. The tenants refused to pay the rent owed, and therefore the panel solicitor began proceedings to evict them from the property.

The tenant was eventually evicted by the County Court bailiff six months after the original default. The legal costs to evict the tenant were covered under the policy, as well as unpaid rent, which totalled £9,000. Without Legal Expenses and Rent Guarantee cover, the policyholder would have been left significantly out of pocket.

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