Letting agents 'should be covered by PI'

10/03/2008

The protection offered by professional indemnity (PI) insurance could be welcome for landlords, it has been suggested.

Writing for the Mail on Sunday, Helen Loveless notes that tenants are protected against rogue landlords by law.

But the owners of property are not extended the same guarantee, she notes.

Ms Loveless points out that, should a property owner list their domicile with an agent approved by the Association of Residential Letting Agents (Arla), the protection of PI can be assured.

"All Arla members must abide by a code of practice aimed at protecting landlords and tenants," she writes.

"This covers the way in which clients' money can be kept as well as procedures for handling complaints - members must have PI insurance cover."

But she notes that of the 4,000 letting agents in the UK, the number which are members of Arla is around the 2,000 mark.

Arla sets two levels of PI cover required for its members - the first is a minimum policy coverage of £150,000 for firms which earn up to that figure annually.

Those above such a level are required to hold PI in the amount of at least £500,000, the association adds.

PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2008 Adfero Ltd.

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