UK Landlord Forum / Life

ARC Legal Ltd. state if a landlord serves a section 21 Notice then you cannot claim rent arrears under their landlord rent guarantee policy if the tenant fails to pay their rent - which is bizarre - key points underlined in their email below so its very clear to all. And, according to ARC if your tenant is on a periodic tenancy after their initial term has expired (which many landlords prefer esp. if unsure about certain tenants or wish to retain flexibility/plans to sell etc) then once ARC serve a section 21 on your behalf after you make a claim to them for non payment they will only pay you a maximum of 2 months rent - not 5-6-7 months i.e no rent protection to cover you until the eviction date of the tenant - which is bizarre. No one else does this just ARC Legal, Their emails are below confirming this .Landlord should be aware as it can be very stressful when a tenant stops paying and then to be faced with this shocking term and conditions of ARC Legal.

RLA use Rentguard who also use ARC Legal Ltd. so many landlords could be in for a shock. I have told RLA to change ARC Legal Ltd as their underwriters but surprisingly they want to carry on with them even though ARC have this bizarre term. No other rent guarantee insurer has it, they must be getting commissions or are related in some way, as no one in the right mind protecting landlords would use ARC Legal with such a bizarre term?

It is Adrian Flux's landlord policy claims on their website/phone calls/other places to pay up £25k arrears but this is not true if your tenancy agreement fixed term has expired, which is common and most landlords don't like to give a new or another fixed term 12 month agreement preferring instead the tenant to be on a periodic tenancy in case they want to evict sooner/sell/that it does not afford a difficult tenant longer security than necessary and landlords need that flexibility esp. if tenants become difficult or poor in payments else as then only a long winded s8 has to be used, and because a section 21 can't be served for another minimum of 6 months.

If the fixed term expires ARC Legal Claim that Adrian Flux's policy will only pay 2 months rent maximum (the term is show in point b of the last email below) even though eviction proceedings currently can easily take up to 5-7-9 months or longer if defended so you could still be out approx £7-£10k-£15k despite having taken out rent guarantee insurance! - someone pinch me is this for real!! Nightmare and misleading and Adrian Flux have done nothing to clarify this, so it will very likely TRAP landlords who do not want yearly agreements, some more than others.

Below are the terms in ARC Legals Policy terms and confirmation if you or they serve a section 21 which according to then 'end your tenancy' which Adrian Flux have confirmed they agree with this interpretation in writing, you will get 2 months maximum which seems bizarre and misleading to what they claim to offer upto £25k.


From: Tina Thackray [mailto:
Sent: 16 July 2019 14:09
Subject: RE: Legal Expenses Claim Form

Dear Mr *******

As advised yesterday I have taken legal advice in regards to our interpretation of the policy wording.

Our solicitors advised they agree with our stance in that serving Notice to bring the tenancy to an end is the Notice that is being referred to in the policy.

A Section 21 Notice is the Notice you have to give to bring a tenancy to an end.

A Warrant for the bailiff is a request for a bailiff appointment and is not a Notice but a Writ

As such we are sorry to advise no rent is payable by the policy.

Please ensure our claim reference number is clearly quoted in the subject of all emails sent to us.

Kind regards,

Team Manager | Arc Legal Assistance Ltd
PO Box 8921 Colchester CO4 5YD
0344 770 9000
[/Claims/Documents/ARC/

______________

Dear Mr *****

Further to your email below.
I would confirm that your claim has been passed to our complaints department who will be in touch with you.

I have attached a copy of the policy wording as requested. This is the policy wording relevant to your policy periods 25.09.2018 - 24.09.2019.

The Insured Event has been advised as 28.05.2019 the date of the first rent arrears.

There are no page numbers, however please see the section 'Rent Guarantee'.

Rent is only payable:-
a) For up to 12 months or
b) For the dates shown as the term in the Tenancy Agreement, (if the tenancy has been allowed to roll onto a monthly periodic term, up to
expiry of any notice to bring the monthly periodic tenancy to an end) whichever is the lesser and
c) For arrears occurring during the Tenancy Period, and
d) Whilst the Tenant (including any unauthorised occupant) remains in occupation of the Insured Property and
e) Up to the Maximum Amount Payable

Your remaining questions will be dealt with by our complaints department.

Please ensure our claim reference number is clearly quoted in the subject of all emails sent to us.

Kind regards,

Senior Claims Advisor | Arc Legal Assistance Ltd
PO Box 8921 Colchester CO4 5YD
0344 770 9000
[/Claims/Documents/ARC


Rentguard email - they will continue to use ARC Legal despite their terms!
______________________________________________________

Dear 
 
I am in receipt of further recent communication from yourself and would like to take this opportunity to reiterate our stance on the matter.
 
As per our email to you on 3rd September 2019, your concerns regarding our relationship with Arc Legal to the relevant management and have concluded that we are happy that our suite of products meets the demands and needs for residential property investors.
 
You have highlighted that the terms and conditions of this policy do not meet your specific insurance needs however customers are to determine this for themselves. We believe that Arc Legal offer a good service and will continue to work with them going forward.
 
 
Kind regards,
 
Complaint Handler
 

27 Great West Road | Brentford | London | TW8 9BW
 
______________________________________________________
 
Dear Mr 


I have not had a reply below.
 
I am about to post and publish my experiences concerning al this, including the response and assistance from RLA (of whom I am a member but they have done absolutely nothing which I find shocking as they are still recommending polices unwritten by ARC!) and others.
 
Arc's rent guarantee which RLA offer through Rent Guard does not cover landlords once they are on 'periodic tenancies till' with rent protection till the eviction date or where a landlord serves a s21 in the normal course of dealing with their property sometime previously, they require landlords to take out annual fixed terms every single year but they do not make this clear, anywhere beforehand. This impacts and interferes with how landlords may wish or need to deal with some tenants i.e. keep some on periodic tenancies particularly if they have been poor with paying full rent on time etc. or intend to sell their property anytime at short notice or countless other issues.
 
Do you not have any concerns?
 
I am surprised no one is helping or bothered to safeguard the interest of normal landlords. No wonder landlord issue never make progress and are trampled on, despite there apparently being so many private landlords in the UK. We need to make landlords aware of people not treating landlords fairly so we can improve things generally for all.
 

Yours sincerely,

M