Lettings platform, Goodlord, has teamed up with insurance experts, Legal & General, to be the first to offer renters added protection in the form of a an illness and injury policy.
The product, which will be processed through the Goodlord platform, will be available from £6 a month and ensure tenants can cover the costs of their rent and bills should illness or injury prevent them from working after four weeks’ absence.
The partnership was developed in response to the growing challenges and realities faced by today’s renting population which were recently detailed in Legal & General’s “Deadline to Breadline” report. The research revealed that renters are more likely to have limited cash reserves than homeowners, with the average renter having only three days of savings, based on their current daily spending rate, before their income runs out.
Currently, most insurance products available require tenants to go through an advised sales process with a financial adviser – creating barriers to entry and reducing take-up – whereas this product will be available to all tenants that go through the Goodlord platform and will be able to automatically give a price for an amount of cover based on the tenant’s current rent and anticipated bill payments.
Oli Sherlock (pictured), Director of Insurance at Goodlord, says: “We’re constantly looking to introduce new ways to make the rental market stronger and more efficient. It’s therefore fantastic to expand our growing insurance offering. Working with Legal & General on this project has been a real meeting of minds; we share a vision of bringing greater security to agents, tenants and landlords: helping keep tenants in their homes, protecting landlords’ investments, and ensuring agents’ income is secure, while reducing the friction for renters that can surround accessing insurance.”
David Lundholm, Director, New Income Streams at Legal & General, adds: “Every renter is different but all share a common goal of ensuring they are able to cover the rent for their home and bills and so we wanted to create a simple, easy to access and affordable means of providing them with insurance that works when they can’t. Partnering with Goodlord means we’ve been able to create a ‘digital do-it-yourself’ protection product that supports their rental customers when they need it most. Income protection doesn’t need to be complicated and our Illness and Injury Insurance helps renters take control of their cover, so they can keep paying for the things they need while they’re off work ill or injured.”
The new illness and injury insurance is set to further bolster Goodlord’s existing catalogue of products for the lettings sector, including Rent Protection & Legal Expenses Insurance and Tenants Content and Liability Insurance.