OnTheMarket has launched a management fee protection product to protect members against lost lettings fees.
The product, developed with tenant referencing platform Canopy and insurance broker Alan Boswell Group is underwritten by Aviva and provides up to 15 months of cover for the loss of management fees. It also provides up to £100,000 of legal expenses, including the handling and the cost of the eviction process and/or gaining possession of a property.
If a tenant is unable to pay rent, the payout is capped at 15% of the monthly rent and is available for rent up to £2,500 per month.”
There is no excess for the product which also provides access to a free legal advice line. Agents can purchase and manage their policy through the Alan Boswell Group via an online platform.
Julie Emmerson, head of agent commercial partnerships at OnTheMarket, says, “As the cost of living continues to rise, there are concerns that some tenants may begin to struggle to pay their bills.
“This product protects agents’ managed income against tenants defaulting on their rent.”
Chris Hutchinson, Canopy chief executive, adds: “Landlords can already access Rent Guarantee Insurance but we were hearing from agents that their fee was only covered if a landlord chose to take out this policy.
“Now they can access this cover irrespective of whether a landlord chooses to be covered, providing assurance and security.”
Alan Boswell Group previously launched a Legal Expenses Insurance and a Legal Expenses and Rent Guarantee Insurance product.