Direct Line Landlord Insurance

[Pete D]

As a landlord (couldn’t sell our old house), I have Direct Line Landlord Insurance, which covers rent shortfalls should any tenant default. Just had an email saying that insurance aspect is no longer in place, as banks will offer a mortgage payment holiday due to Coronavirus (any shortfall would of course need to be paid after that holiday, but DL handily forgets that).....

Whilst I have reduced the rent (by 60% due to the current tenants’ circumstances), and have no intention of making any claim against insurance (it was my choice to reduce out of goodwill and loyalty), I am mightily peeved that Direct Line has just basically kissed that element of the policy off (despite using it as an advertising line). Frankly, I will never cross their palms with my business again..

Anyone else had insurance companies slither out of their dues preemptively?


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[David_D]

As a landlord (couldn’t sell our old house), I have Direct Line Landlord Insurance, which covers rent shortfalls should any tenant default. Just had an email saying that insurance aspect is no longer in place, as banks will offer a mortgage payment holiday due to Coronavirus (any shortfall would of course need to be paid after that holiday, but DL handily forgets that).....

Whilst I have reduced the rent (by 60% due to the current tenants’ circumstances), and have no intention of making any claim against insurance (it was my choice to reduce out of goodwill and loyalty), I am mightily peeved that Direct Line has just basically kissed that element of the policy off (despite using it as an advertising line). Frankly, I will never cross their palms with my business again..

Anyone else had insurance companies slither out of their dues preemptively?

I'm not a lawyer but I can't see how the insurance contract can be changed retrospectively.

The point is, anyway, a mortgage holiday simply defers payment (at a cost of more interest) whereas a rental default is/maybe an actual loss (and not just a deferral).

If they are saying that an agreed deferral or rent reduction prevents the loss being treated as within the rules for a claim, then I guess that's debatable. Might be within the letter of the contract.

Be interested to hear informed views.

[Pete D]

Nothing said about rent reduction or deferral, besides, that it the landlord’s personal choice. This is just a statement that the rent guarantee aspect has been withdrawn due to Covid 19.

I have just contacted them to ask for a refund of the additional payment that covers the rent guarantee. Don’t see why I should pay for a service they are no longer offering. Bet they will not pay anything though.


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[Devonian]

I always doh d with DL that they were competitive when you joined them but after the first year way off the mark. Found this on 3 occasions with car, home and landlord insurance. Don’t even bother getting a quote anymore.

[Pete D]

They certainly won’t be getting any business from me again.


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[number2]

Reminds me to 'shop around' when renewals are due.

[David_D]

https://www.landlordlawblog.co.uk/20...newsround-140/

See section "Rent Guarantee Insurance firm lets landlords down"

For what it's worth, I'd be making sure a claim was made, then at least when the dust settles in (hopefully no more than) a few months time, you can argue the case then.