Legal & General is rolling out its Rental Protection Plan (RPP) insurance across the UK after trialling the product in selected areas in partnership with the Mortgage Advice Bureau.
The insurance-based product pays out a monthly benefit which a tenant can use to pay the rent or other bills should a they lose their job or become ill, and are able to successfully file a valid claim, and is the first of its kind to be available nationally.
The product will be available to agents who recommend financial products via MAB and one of the first to begin offering it is national chain Andrews.
“Renters are often overlooked in the protection market, but their needs are just as important as those who are taking out mortgages,” says its CEO Paul Bumford (left).
“The ongoing debts and worry that people experience should they lose their income is the same whether the person has a mortgage to support or a fixed-term let.
“Offering renters income protection to safeguard and cushion all those financial worries can only be a positive step forward for all.”
The RPP product is one small part of Legal & General’s ongoing strategy to become the major player in all sectors of the housing market including affordable, build-to-rent and open-market homes for sale. It is already a significant player in the landlord and contents insurance market.
Craig Brown, a director of Legal & General, says: “The rental sector is growing, but unlike those who have taken their first step on the housing ladder, tenants won’t have the natural trigger of a mortgage application to consider the protection that can be so vital should the worst happen.
“We know that rental payments are every bit as important as mortgage payments in a household’s finances.”