Rightmove has launched a unique insurance product for lettings agents that pays their tenancy management fees if a tenant stops paying the rent, for up to 15% of the monthly rent.

Called Agent Revenue Protection, it is designed for agents who can’t persuade their landlord client to take out rent guarantee insurance. It also pays for the costs of eviction and for properties rented for up to £100,000 a year.

The insurance is also ‘double bubble’ as it also protects the landlord from paying the costs of evicting a tenant who has stopped paying the rent, which Landlord Action reckons is typically £1,500. It is part of a concerted effort by Rightmove to offer bolt-on products to agents in the lettings market.

Cover is provided until vacant possession of a property is achieved, and the insurance has no excess. It also includes legal services for any breach of the tenancy agreement including removal of squatters, a mediation service and a free commercial legal advice helpline.

Eviction dependent

But like rent guarantee insurance, it relies on a landlord or agent being able to evict and would fall down if there were another evictions ban during a worsening of the Covid pandemic.

Andy Wynne-Jones, Rightmove’s Head of Insurance, (pictured) says: “We’ve spoken to hundreds of agents in recent months about insurance cover and they’ve given us some really valuable feedback.

“One thing we’ve been hearing is that they know from experience that a number of landlords can face tenant arrears and potential evictions, but individual landlords may not think rent guarantee is necessary if they haven’t experienced issues like this themselves or if they’re relatively new to the industry. This product fixes that.”

Agent Revenue Protection will launch later this week. Email the portal for more info.