We are looking to reintroduce the LL Legal and Rent Guarantee product back into our portfolio for New Business from 1st August. The main change is that Rent Guarantee will now become a choice within the Legal Expenses product.
Renewals will move to this product from September and we are establishing options for customers similar to the rebroking documentation.
We will forward a full document detailing all the changes soon. However in summary they are:
- A change of underwriter from Arc Legal to Legal Insurance Management Ltd
- Rent Guarantee to become an Additional Cover Option with the overall product
- A reduction of benefit payment period from 12 months to 6 months
- No cover following Vacant Possession being achieved (the current product pays 75% of the rent for a further 2 months to allow for dilapidation repairs to be carried out and the property re-advertised)
- The introduction of a mediation service that must be used prior to making a claim
The Pricing changes are:
The pre COVID product was priced at £72 per annum to the customer for Legal Expenses and Rent Guarantee.
Due to the dramatic increase in net rates for Rent Guarantee the new costs will be as follows:
Legal Expenses only: £60 per annum
Legal Expenses and Rent Guarantee: £204 per annum
The price reduction of Legal Expenses only is to reflect that it no longer includes Rent Guarantee cover.