| The recession may or may not be over – | | | | could result in physical damage to your property, |
| depending on what you read and whose figures | | | | this insurance would provide both legal advice and, |
| you trust - but for many tenants, especially those | | | | provided the solicitor considers there is a |
| who have lost their jobs as a result of the | | | | reasonable chance of success on your behalf, the |
| economic downturn, meeting their rent obligations | | | | legal expenses involved in taking action. This is |
| could be a step too far. | | | | usually up to as much as £50,000 in any year, |
| In a worst case, this can result in defaults, which | | | | so it should cover most events. |
| could leave you, as a property owner, out of | | | | There are other important areas where this |
| pocket. | | | | insurance can be invaluable, because it covers |
| Fortunately, it is possible to arrange property | | | | such events as contract disputes relating to |
| owners' legal expenses and tenant default | | | | suppliers such as decorators, builders and so on. It |
| insurance – as an add-on to your property | | | | also extends to cover debt recovery from |
| owners' insurance – that will pay you the rent | | | | suppliers (or customers) should the need arise. |
| you are owed, from one month after the date of | | | | Even more importantly (for some) representation |
| default until you manage to regain control of the | | | | is available in respect of appeals against HM |
| property with vacant possession (up to 12 | | | | Revenue and Customs following corporation tax, |
| months). So if your tenant cannot – or will not | | | | self-assessment or VAT enquiries. The cost of |
| – pay you your rent, the insurance can (which | | | | getting involved in a tax investigation can be |
| can cover you for an indemnity up to £25,000). | | | | significant, because of the amount of time and |
| It goes much further than this. For a modest | | | | paperwork involved – quite apart from the |
| premium per property, it can also cover the legal | | | | legal complexities – so such representation can |
| cost involved in regaining control of your property | | | | be invaluable. |
| and also any outstanding rent. This can run into | | | | With many property owners employing cleaners |
| thousands of pounds and is well worth having, | | | | and other maintenance staff, it is reassuring to |
| because otherwise you may not be able to afford | | | | know that employment disputes and any resulting |
| the cost of going to court for what might be | | | | compensation awards are also covered by the |
| relatively modest sums. Repossession costs are | | | | property owners’ legal expenses insurance. |
| not normally covered for the first three months. | | | | It is therefore important to seek independent |
| This sort of property owners' legal expenses | | | | professional advice before making any decision |
| insurance covers you in a wide range of | | | | about your landlords insurance. You should always |
| circumstances that go far beyond rent disputes. | | | | ask your insurance advisers what experience they |
| For example, should you get into a boundary | | | | have of dealing with residential and/or commercial |
| dispute with a neighbour or need to initiate (or | | | | rental property insurance. |
| defend) legal action relating to something that | | | | |