Legal & General has launched a protection product specifically aimed at private tenants.
The insurer has completed the pilot phase of its new Rental Protection Plan (RPP) for tenants, in conjunction with the Mortgage Advice Bureau (MAB).
The plan, which is currently available via MAB intermediaries, offers the choice of three products through a single application: Rental Income Protection Benefit, Rental Life Insurance and Rental Life Insurance with Critical illness Cover.
Tenants can select the relevant products to meet their needs and budget. They can increase the amount of cover if their rent increases, they relocate or otherwise change tenancy agreement without the need to go back through medical underwriting.
A full market launch via Legal & General’s intermediary partners is expected later this year.
Craig Brown, director of Legal & General Intermediary, said nearly a quarter of UK households will be renting by 2023 and the protection needs of these families will need to be met by products and solutions specifically designed for them.
“First-time buyers usually receive a protection ‘nudge’ when they seek mortgage advice, but most renters do not benefit from the same prompt. This leaves tenants facing a greater risk of vulnerability due to unforeseen circumstances,” he stated.
Peter Brodnicki, chief executive of MAB, added that the tenant market is completely untapped with the current focus totally on protecting the landlord.
“Tenants have the same outgoings as home owners, and so keeping both groups in their home should be our priority,” he said.