Frequently Asked Questions
Can I discuss my specific Rent Guarantee requirements with NLA Rent Guarantee Insurance?
This policy is designed to be sold via our website only, and as we are unable to give you advice on the suitability of the policy it is defined as a non-advised sale by the FSA. The answers provided under this Frequently Asked Questions section of our website are intended to provide you with additional information in order to assist you to make an informed buying decision however if you have a specific enquiry please email us at enquiries@nlarentguarantee.org.uk and we will endeavour to respond to you as quickly as possible.
What is Rent Guarantee Insurance?
Quite simply, Rent guarantee insurance will protect you in the event that your tenant fails to pay their rent. Your Rent Guarantee policy also includes Legal Costs Insurance to assist you in recovering your lost rent.
What is Legal Costs Insurance?
Legal Costs Insurance covers the costs incurred in issuing proceedings against a tenant or guarantor who fails to perform his obligations set out in the tenancy agreement regarding the rightful occupation of the insured property it will cover you for costs incurred in legal proceedings against unpaid rent, removal of squatters and a tenant including eviction.
What types of tenant are acceptable for Rent Guarantee Insurance?
Any person as long as the Tenancy Agreement is directly between landlord & tenant and the tenant or their guarantor has passed a full NLA Tenant Check. This includes benefit recipients, student and asylum seeker tenants.
Do I need a Tenant Reference?
Yes, it is a condition of your policy that your Tenants are referenced by NLA Tenant Check. When you first insure a tenant you must obtain a FULL Tenant Check. You will not need to purchase a tenant check upon policy renewal. No other tenant reference is currently acceptable.
Why do I have to use NLA Tenant Check?
With so many referencing companies entering the market we felt that we wanted to have a single provider with whom we could negotiate a significant discount for our Members whilst strictly monitoring the quality of service that they provide. By using just one provider we were also able to reduce the cost of the Rent Guarantee policy as this has simplified the procedures for Underwriters in the event of a claim. Further details on this service are available by visiting www.nlatenantcheck.org.uk.
Failure to provide evidence of the required referencing requirements in the event of a claim will invalidate your cover and no payments will be made.
My tenant has a CCJ, can I still insure them?
Unfortunately we are currently unable to insure Tenants with CCJ’s.
My Tenant has not passed the Tenant Check but NLA Tenant Checks has recommended that a Guarantor is obtained – will you still insure me?
If your tenant is a borderline case then NLA Tenant Check may advise that we can accept them subject to a Guarantor being nominated and passing the NLA Tenant Check. Providing this happens and the Guarantor is correctly assigned to the Tenancy Agreement then we can insure you.
If however the tenant is identified as being a bad risk (for example they have failed to pay rent to their previous landlord, do not have an income stream or have CCJ’s registered against them) then NLA Tenant Check will not make a recommendation for a Guarantor and as such we will be unable to insure you.
How many tenants do I need to insure?
The policy is based per tenancy agreement no matter how many tenants are listed on the agreement.
How do I notify you of a claim?
Your policy clearly explains the procedures that you must follow in the event that rental payments are not made on time. Once you have purchased your cover we strongly recommend that you familiarise yourself with these simple and straightforward requirements rather than waiting until your tenant has defaulted. A dedicated contact number and reference are provided in your policy wording and should be used to notify us of a claim on your policy within 45 days of the first payment being missed.
Is there an Excess to pay if I make a claim?
There is an excess payable in the event of a claim but it is not a set figure. When you make a claim a sum equivalent to the first months rent forms your policy excess.
How much rent do you pay in the event of a claim?
We will pay the monthly rent as stated in your Tenancy Agreement up to a maximum of £2,500 per month, and limited to a total of £15,000 or the equivalent of six months rent, whichever is the lesser. Also rent is only paid up until vacant possession is gained or until your annual policy expires – whichever occurs first.
Is there a limit to the amount I can claim for Legal Costs?
Yes, £50,000.
I already have a tenant in my property. Can I insure this agreement?
Yes, but you will not be covered for any claims which occur within the first 90 days of your policy. We will also require you to obtain a Full NLA Tenant Check reference before you can purchase your cover.
Who am I insured by?
This insurance contract is underwritten by Inter Partner Assistance SA, a wholly owned subsidiary of AXA Assistance SA (part of the worldwide AXA Group). Arc Legal Assistance Limited administers the policy on their behalf in the UK.
Who is NLA Rent Guarantee Insurance?
NLA Rent Guarantee Insurance is a trading name of HFIS plc. HFIS plc is authorised and regulated by the Financial Services Authority. Their status can be checked on the FSA Register www.fsa.gov.uk/register/home.do and entering their Firm Reference Number which is 306513.
Can I use my own Solicitor?
No. This insurance only covers legal fees incurred by Arc’s panel Solicitors or their agents prior to the issue of court proceedings.
Will I be required to attend a court hearing?
Yes, should your case reach this stage you may be requested to attend court by the legal representatives appointed by Arc.
Does the policy provide a dedicated Legal Advice helpline?
Yes, a 24 hour advisory service is available for telephone advice on any legal problem of concern to you in connection with the Insured Property.
Specialist legal advisers are at hand to help you. If you need legal representation and your problem is covered under this insurance the advice line will ask you to complete a claim form. If your problem is not covered under this insurance you will be advised of this by the advice line however in certain circumstances they may be able to offer you assistance under a private funding arrangement.