Landlord Protection Insurance – protecting against ‘Tenant Hardship’
We’ve recently seen a higher amount of break lease cases and hardship applications to Tribunal. A case that comes to mind is one where the tenant lost his job and therefore also lost his residency rights and needed to leave the country quickly. Tenancy Advice (an advocate for tenants) called and asked us to ‘have a heart’ and release the tenant of his obligations with him paying just one weeks rent and they wanted us to immediately return the bond.
While we wanted to help the tenant, letting is more difficult during these months of the year and we didn’t feel it was the best way for the owner to proceed. We advised the owner that we would contact their Landlord Protection Insurance firm and get back to them. Their insurance rep advised us that had we allowed the tenant out of the lease, the owner would not have been covered for any loss of rent, however if the tenant had the Tribunal terminate the tenancy, then our owner would receive all rent (if any) lost.
The thing to remember is not all Landlord Protection Insurance policies are the same and it would be wise to compare.