HomeLet and Let Alliance have announced what they call a market first with a rent guarantee providing cover until vacant possession or up to 15 months, whichever comes first.
The product also doubles legal expenses cover from £50,000 to £100,000 and includes cover should a tenant defend the action.
These changes to the group’s rent guarantee products will automatically apply from March 1 for all existing and new customisers.
A statement from the firms says “such significant improvements to an insurance policy mid-term is most unprecedented” and come as a result of increased rental market uncertainty over Coronavirus, the eviction ban and worries about the economy.
Commenting on the announcement, Andy Halstead - HomeLet and Let Alliance chief executive - says: “Just as we thought the worst of times were behind us as we said goodbye to 2020, here comes 2021 with more of the same. We find ourselves in total lockdown and the government have once again extended the eviction ban in the private rental sector.
“At the end of April this year the government’s furlough scheme ends, millions of people face uncertainty and potential redundancy. This time however there is light at the end of the tunnel, the vaccine roll-out has commenced, and all being well, we should get our lives back by the summer of this year.
“So we have decided to act now in the best interest of our valued letting agent customers.
He continues: “By working in partnership with our customers, we’ve been able to behave responsibly and professionally throughout the ongoing pandemic. We did not feel the need to act recklessly and take market share at an unsustainable price, only to increase them when the end of the crisis is insight. We consider this to be opportunistic and not how we understand long term partnerships - true partnerships are about value creation for all parties.
“As 2021 unfolds we’ll keep a very close eye on the economic conditions and market performance. We’re optimistic about the future, if and when it becomes safe to do so, our intention is to reduce the cost of our rent guarantee products.”