Financial & Legal Insurance, the specialist insurer based in Cheadle, Manchester, has announced a new partnership with Legal Protection Group (LPG) to grow its presence in the private rental sector, which accounts for 19% of all UK households. The partnership is well-timed as demand for quality rental properties is increasing as interest rates rise, and people delay buying a property or put it off completely. LPG will distribute products manufactured by FLI and underwritten by FLI’s own insurance company, offering a range of protection for the sorts of challenges facing landlords, including:
· Legal expenses, for dealing with issues such as tenants abusing the property or acting in an anti-social way
· Rent guarantee, which provides rental income if tenants fall into arrears
· Home emergencies for perils such as escape of water in the property.
Karen Beales, Managing Director at FLI, said:
“The financial difficulties faced by tenants during the pandemic, as well as changes to tax and other regulations, mean landlords have been through a difficult period. Some insurance underwriters have left this market altogether, but we see a real opportunity to work with LPG and deliver a profitable insurance solution with strong customer appeal in this sector.”
She explained that the partnership aligned to FLI’s longer-term strategy which is to underwrite a wider portfolio of products beyond legal expenses insurance, for which it has become well-known.
“We have worked hard to ensure our home product meets the emerging requirements of the marketplace, in particular the importance of being fully compliant.”
Karen added: “The partnership signals our longer-term strategy to build on our reputation for providing LEI solutions and grow through a portfolio of products.”
Martin Rowan, chief executive of Legal Protection Group, said:
“Landlords cover has been in the news recently in the wake of significant premium increases and an announcement earlier this year from Secretary of State Michael Gove that the government is looking to end “unusually high broker commissions.”
Martin explained that changes in the law (Tenants Reform Bill is expected to make its way through Parliament later in 2023 – Ed) threaten to create a very challenging environment for buy to let landlords (BTLL). “Our products help to redress the balance to give BTLLs a fighting chance in the new world they face.”
“FLI has a great reputation in the LEI space and we are thrilled to be part of their plans to go beyond LEI into landlords protection at a time when demand for these products is bound to rise. It is a challenging sector, particularly in the wake of Grenfell and subsequent government and regulatory policy actions, so we’re pleased we’re able to help provide peace of mind to landlords with a suite of market-leading products. We plan to grow our book by during the next 12 months as a result.”