While landlords have a duty to safeguard their rental properties and income, tenants are generally responsible for protecting themselves and their belongings, along with ensuring they have a rental protection plan if necessary, which is why they should consider taking out an appropriate tenant’s insurance when living in rented accommodation.
Having the necessary insurance cover in place can offer tenants that added peace of mind, which partly explains why Move iQ, the property service headed up by property expert and TV star, Phil Spencer, has joined forces with Legal & General to offer insurance to tenants - through letting agents and other intermediaries.
Available only via intermediaries, Legal & General’s Rental Protection Plan can help provide some financial security for individuals and their families. The policy holder could use a monthly benefit to help pay the rent in the event of a valid claim.
The new adviser toolkit includes features such as benefit calculators, guides, sales aids, links to workshops and a series of webinars.
Phil Spencer, the founder of Move iQ, said: “Move iQ are delighted to support and endorse Legal and General's new rental protection plan.
“Ensuring our lives and homes are protected is just as important to renters as it is to homeowners and this insurance product does exactly that.”
The rental market is a hugely underdeveloped area where financial advisers can add a lot of benefit for renters, according to Richard Kateley, head of intermediary development at Legal & General.
He commented: “The rental market is a hugely underdeveloped one and an area where financial advisers can add a lot of benefit for renters.”
“If I was buying a home I would probably be directed to a financial adviser to talk about the risks of not keeping up repayments. Yet if I renting a home, the chances are I would get none of that information.”
“There is a common misconception that because someone chooses to rent they have a low income and can’t afford cover. In reality, renting today is much more about a lifestyle choice and not being tied down to one place; or not yet having a full mortgage deposit.
“It is much less about disposable income and low wages. I hope as a provider we can help advisers develop this market place and make sure that we work to put renters in a much more informed position about their biggest asset - which is of course themselves, and their ability to earn an income.”