Legal expenses insurer DAS is set to launch a range of add-on products aimed at the mortgage market, including property let legal protection. Its research suggests that less than one in five landlords protect themselves against tenants failing to make payments and the subsequent costs associated with eviction.
However, warnings have already arisen that landlords must prepare for the fallout of tenants losing their jobs as the government cutbacks announced in the Spending Review take hold.
DAS, which partners with firms including Lloyds TSB and Nationwide and does not sell direct, will launch its products at the upcoming Mortgage Business Expo in London.
The products will include property let legal protection aimed at the buy-to-let and commercial lending sectors, and home emergency insurance for residential clients.
The property let legal protection offers landlords help in the event of such issues as tenants falling behind in rent, causing damage to the property of at least £1000 or refusing to leave the property once the tenancy agreement has ended.
The home emergency product provides 24-hour assistance for a range of emergencies, such as roof damage, plumbing, heating and power-supply failures, and home security problems. Additional products include ID theft protection and household legal advice and assistance.
Alex Manning, business development manager at DAS, said: “There is massive, untapped potential in the legal expenses insurance for landlords market. A significant number of landlords will end up with problems with tenants losing their jobs and the protection can pay the rent, not just cover the legal expenses of evicting the tenant.”
DAS said that mortgage brokers have previously had limited access to such products, but it was confident that the consumer demand existed and brokers could help satisfy it.
Manning said: “Brokers can add real value to their clients for a relatively small cost and one that can be offset against tax.”
He added that DAS has already had “very positive” talks with mortgage networks and will use the Expo to extend its discussions with brokers.
