Ceta launches rent guarantee solutions for intermediaries

Personal lines broker, Ceta, has launched four new rent guarantee solutions for intermediaries as they help their landlord clients navigate the changes implemented by the Renters’ Rights Act.

The Act has significantly increased income risk for landlords, with the impact already being felt. The median time to possession has already increased to 27 weeks, and landlords are now experiencing a minimum of four months’ rental income loss before Section 8 proceedings can commence. As a result, rent guarantee claim durations are forecasted to rise between 75-100%, and legal expenses volumes by 150-200% over the next few months.

76% of landlords say they are more likely to seek cover as a result of The Act. In response, Ceta has launched four products with 12 and 18-month cover options and premiums starting from £110.

Underwritten by Addept, each of the four products also includes £50,000 cover for legal expenses.

James O’Hara, commercial director at Ceta, commented: “Having the right protection in place against unpaid rent and tenant disputes is more important than ever. Standard six-month cover is no longer sufficient; cover of 12-18 months is more aligned to the current possession timelines facing landlords, because of the potential for longer arrear thresholds and significant court delays.  We’re therefore delighted to lead the market by providing intermediaries and their landlord clients with a range of flexible cover options that ensure cover remains accessible and aligned to the real-world impact of these far-reaching legislative changes.”

Richard Finnan, managing director at Addept, added: “Private sector landlords are facing significant disruption as a result of The Act. We’re delighted to support Ceta as they bring to market products designed to mitigate the legal risks and protect against rent arrears and repossession costs. It’s great to work with partners who, like us, have the expertise to move quickly and help intermediaries respond to the changing risk and regulatory environment of today’s rental market.”