RGI and Payment Holidays/Reduction

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    RGI and Payment Holidays/Reduction

    I have been looking at the recent posts re landlords having occupants struggling to pay and have a question please

    I have an existing RGI policy valid for another 5-6 months but looking on line what direct line are saying it won't pay out anyway - unless there is an existing claim being paid.

    Direct Line mention “During this three-month period we cannot pay any new rent guarantee claims as there is no legal mechanism to allow us to take a claim forward." I'm not sure if the same is true for all providers.

    So if an occupant begins to struggle with payments do you think agreeing a payment holiday or taking reduced rent would invalidate any future RGI claim?

    All the best Stew


    #2
    I think the present situation has shown RGI to be as much use as a chocolate teapot when you really need it. I can see nothing happening to change my view.

    Comment


      #3
      Thanks for the comments, Direct Line sent a communication this morning stating they would not pay any new claims for the next three months..... so I assume there must be some small print in the policy that allows them escape from the obligation

      However it also says they will renew the policy but please be patient as the phones line are busy.....

      And the point of renewing when they won't honour any claims............

      Comment


        #4
        Where does it say in the Direct Line T&C's that there must be in current law a mechanism for them to do something? Or does one need to pick insurers who are not just wanglers, villians, transgresors, wrongdoers (which DIRECT LINE DEFINITELY are not in any shape or form according to their press release which does not mention they are any of these things) or as many other non-libelous synonyms I can find.

        Yet another reason never to think that rent guarantee insurance is worth much.

        I'll drop this company for my general insurance from now on given their inclination to pull these sorts of stunts.

        It seems that the current situation and government approach is providing a free licence for crooks to do crooking from all directions. Let's hope they can turn the tap off later.

        Comment


          #5
          Originally posted by Stew View Post
          Direct Line mention “During this three-month period we cannot pay any new rent guarantee claims as there is no legal mechanism to allow us to take a claim forward." I'm not sure if the same is true for all providers.
          I don't see how that stops them from paying the claim to LL, only from starting legal proceedings against the tenants.

          They seem to be trying to get out of their obligations.

          Perhaps you would read your policy and post any terms that might allow them to take this action?

          Comment


            #6
            Originally posted by MdeB View Post

            I don't see how that stops them from paying the claim to LL, only from starting legal proceedings against the tenants.

            They seem to be trying to get out of their obligations.

            Perhaps you would read your policy and post any terms that might allow them to take this action?
            Ah, well that's the point I made in another thread. They aim to issue a s8 asap, the tenant puts in a defence and cover is then withdrawn. The most rent you can expect is a few weeks while papers go back & forth. That there is now a 3 month moratorium on evictions is effectively a defence!

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              #7
              Hi I will get the email and post the exact wording if that won't get me in trouble? the insurance company seemed to be suggesting that because BTL can get a mortgage payment holiday that this route they should be following,, personally I don't see how that impacts. You have bought insurance and if the policy does not have an exclusion for situtions of a global pandemic or a state of emergency then they should be paying.

              This also goes against the defence the government is giving for not helping landlords, I am sure I have seen it quoted in communications that many landlords will be fine as they have insurance that protects against lost rent.

              I class it the same as when I took out building insurance it states clearly what the exclusions are.

              All the best Stew

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