Rent with Peace of Mind
The first of it’s kind in Singapore and Asia, the product from JLT and QBE makes up for up to 12 months of lost rent (capped at $100,000) in several events, such as the tenants defaulting on payments or real estate agents absconding with rents collected.
Protection For Your Investment!
In any economic climate, it is prudent to ensure that your investment is well protected against any unforeseen circumstances which may cause financial strain. Rent Protection Insurance preserves the return on your investment; the rental income of your property you have just leased out. It is designed to assist you when your tenant becomes a problem. A tenant may lose his job and stop paying rent. Or disappear without paying rentals in arrears. Or worse, simply not pay and not leave.
Rent Protection insurance also takes care of any additional expenses you may need to incur to engage legal assistance to institute legal recovery or eviction proceedings.
Rent Protection Insurance is an easily accessible and hassle-free insurance product. You may sign up for Rent Protection Insurance at any point during the tenancy agreement.
(Note: To purchase this policy, your tenancy should be arranged and/or managed by an estate agent; and the tenancy agreement should be legally stamped and lodged with the Inland Revenue Authority of Singapore.)
Premium is highly affordable!
At just 15% of one month’s rent (subject to a minimum of S$250.00), you are covered for the entire period of the tenancy agreement (maximum of up to 24 months).
'Landlords and real estate agents . . . have commented that it is being introduced at the right time in Singapore.' The insurers noted a rising number of landlord-tenant dispute claims. According to data they sourced from the Small Claims Tribunals of the Subordinate Courts of Singapore, there were 1,137 such cases in 2008 - 70 per cent more than a year earlier.
And feedback from the real estate industry indicates that most disputes do not even reach the tribunals, the insurers highlighted. Agents say that it’s hard to take some tenants to task if they have simply disappeared. With market conditions deteriorating, the insurers also felt that rent protection insurance would come in handy. Institute of Estate Agents president Jeff Foo observed that rent defaults have increased significantly, and such cases would hurt landlords that rely on rental income for mortgage payments.
Rent protection insurance has spawned premiums of over A$30 million (S$32.5 million) in Australia, JLT said. 'We believe that this product will find comparable success in Singapore and in Asia.'