Low cost, comprehensive, rent protection insurance introduced in Singapore

At 15 percent of first month’s rental, landholders are protected for the entire tenancy period, up to 24 months.

Landlord-tenant dispute claims have increased at an accelerating pace since 2006, according to statistics released by the Small Claims Tribunal of the Subordinate Courts.

Between 2006 and 2007, such cases increased 65 percent. Between 2007 and 2008, there was a further 70 percent increase in landlord-tenant disputes. In view of this trend, JLT and QBE have introduced a product that comprehensively protects landlords from a range of tenancy-related risks.

Wide Coverage

Rent Protection Insurance provides comprehensive coverage for loss of rent due to:

• Rental default

• Tenant absconding

• Eviction and/or failure to surrender vacant possession

• Untenantable periods due to damage to the Property

• Prevention of Access to the Property

• Property left Un-tenantable due to murder or suicide

• Delay in re-letting due to death of the Tenant under sole tenancy

• Real estate agent absconding with rent collected from tenant

Premiums payable

The premiums, at 15 percent of the first month’s rent (one time payment), provide coverage for the entire tenancy period. The product is the only one of its kind available in Singapore. If the property changes ownership, the insurance can be assigned to the new landlord free-of-charge upon request, provided the tenant remains the same.

Landlords of all residential properties for rent – private landed property, private condominiums, HDB and shop houses for residential usage are eligible to purchase the product.

Low-cost alternative to settling in court

RPI presents an alternative to going to the Subordinate Courts to seek compensation – a tedious and time consuming process.

Mr Lee added: “This product is tried and tested in markets like Australia. Landlords and real estate agents understand its value and have commented that it is being introduced at the right time in Singapore.”

Access www.jltrentprotection.com to purchase or learn more about RPI.