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.