Yet another person has stopped paying their rental insurance

As a HomeLet Premier Agent, we are sent letters advising that a landlord or tenant has stopped paying their monthly insurance premium.

Because of FSA (Financial Services Authority) regulations in the UK our agent role is soley as "Introducer". This means we cannot communicate with individuals reminding them that they have not paid and the cover will cease. That is the responsibility of the insurance provider like HomeLet.

Many people simply do not realise that once the payments stop, so does the insurance cover. If there is a break in, fire, rent is not paid or other insurance related issue, then the landlord or tenant will not be able to claim.

The letter received today was very clear and was about a client who had a HomeLet insurance policy in Scotland.

Dear Agent

Policy Number - Risk Address - Policy Holder

We refer to the above mentioned Client's policy.
Please note that we have been unsuccessful in collecting the premium due, as the Direct Debit payment request has been returned "Refer to Payer" by the client's bank.

The outstanding premium in the sum of £.... will now be requested on or just after the xx August 2009. Thereafter your client's regular monthly premium will revert to being requested on the normal collection date.

We must inform you that failure to maintain payments on direct debit could result in the cancellation or voidance of your client's policy in accordance with policy terms and conditions.

Should you have any queries....Yours faithfully

It is so important to keep up these payments if you want insurance cover, unfortunately a lot of people think, there won't be a problem, so let safe some money. They would not think that if they experience a problem.