SJL INSURANCE SERVICES Letting Agent’s Rent Guarantee & Legal Expenses Insurance - Proposal & Policy Guide

Matthew Robinson | Business Development Executive SJL Insurance Services, Suite C, The Kays Building, The Tything, Worcester. WR1 1HD. Tel: +44 (0)1905 27775 Mob: +44 (0)7905353678 Web: www.sjlins.co.uk

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Introduction to SJL Insurance Services

“To be the best, the fastest growing and one of the largest and most successful independently owned insurance intermediaries in the United Kingdom”

SJL Insurance is an innovative and forward thinking Insurance Broker that provides a high quality service to a national and international client base. Founded in 2001, with the support of a grant from the local chamber of commerce, SJL have grown to be one of the most established insurance brokers in the midlands. SJL started as a wholesale scheme broker and transact business via a growing network of over 1100 independent insurance brokers nationwide. All of these brokers are independently authorised and regulated by the FCA and are personally visited by us before we grant them an agency. Continuing from our success working with brokers, SJL created the direct proposition to enable non-insurance brokers and individuals to earn commission from introducing clients through to us. Today, SJL provides specialist products and services to a diverse range of market groups, including private and commercial landlords, professional companies and the transport industry. We act on behalf of a number of insurers and are completely focused on being experts within the industry. SJL have enjoyed year on year growth of between 20-30% since the business was established. In an industry where growth seems to dovetail with acquisition, SJL have achieved this organically without the need to buy out other businesses or get into debt with the bank or investors. Our continued growth has been built on a solid foundation of mutually beneficial relationships and delivering great products with a great service at competitive premiums. We really are big enough to deliver but small enough to care. Our business model is entirely based on building successful, long-term partnerships by providing a full range of insurance services designed to help further the relationship between our Introducer partners and their customers to deliver a sustainable financial income. With access to Lloyds of London and the UK’s leading composite insurance market, SJL are able to source and place a vast range of comprehensive insurance products at market leading prices. To achieve this we look to secure relationships with organisations which;

Have a strong affinity with their customers

Have a genuine need for insurance

Provide flexible cross-access to their customer base The foundation of our business is our motivated and well trained staff, all of whom endeavour to ensure that SJL maintains a service level which is second to none. Despite only being established in 2001, 5 members of staff have hit the decade milestone. SJL recognise that the service we offer to our clients and partners is only as good as our staff, so we invest heavily in the training and development of our employees. In 2016 we achieved ‘Investors in People’ accreditation and have an excellent track record of developing staff, including the use of apprenticeships where we work with ‘Heart of Worcestershire College’ and ‘Hereford & Worcester Group Training’ in offering business administration apprenticeships to aspiring professionals. This programme has served us well over the years as a number of former apprentices now hold department leading roles within the business. On a visit to the office to celebrate the success of SJL’s apprentice scheme, Robin Walker MP, who sits on the select committee for Business Innovation and Skills as well as the All Party Apprenticeship Group said “It is really clear from SJL’s example that apprenticeships are working and that they are not just getting people their first job but launching them on successful careers. I was very impressed by the bright young people met during this visit and by the attitude of the business to creating new roles.

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Introduction to SJL Insurance Services Continued In a complex financial business of this sort, both qualifications and work experience are vital so apprenticeships seem to provide an ideal solution. It was great to hear that every single apprentice that SJL has taken off has been offered a full time job at the end of their apprenticeship and that all of them are still working in the industry.”

Traditional Insurance Broking SJL do not feature on or use price comparison websites, nor do we just simply offer an online quote system. We believe that the best way to transact insurance is to actually speak, either in person or over the phone. This approach enables us to ask detailed questions about insurance needs and clarify risk. Our account managers are aware of the terms and conditions, benefits, exclusions and costs of a wide range of competing insurance policies, so they can help find the most appropriate cover for your custom’s circumstances. SJL will arrange and place the cover with the chosen insurer and can often provide advice on how to make the most of your insurance budget. Not only will SJL work with your clients for any new insurance quotes, but we will automatically contact them at the time of their renewal and even be the first point of contact for any claim that should arise.

Compliance

SJL continue to invest heavily in compliance to ensure that they are meeting the required Financial Conduct Authority (FCA) guidelines. In addition to a vast range of internal compliance activities SJL are also ‘Gold’ members of RWA compliance group and enjoy the focus of a compliance officer who carries out regular audits.

Underwriting The last few years have seen some significant changes at SJL as we are now an approved cover holder with various insurers within Lloyd’s of London, the prestigious and historic insurance market place. Our team of underwriters offer knowledge and expertise on our property and commercial products which enable us to turnaround quotes and documentation rapidly, without compromising the quality of business that SJL writes.

Claims Our in-house claims team is dedicated and practical in their approach to handling claims. Different insurer partners require a different process to be followed dependent on the individual policy. However, with our investment in technology we are able to give immediate advise on the next steps to be taken by the insured and get real time progression updates as and when required. We also work closely with QuestGates, a market leading loss adjustor, who offers an out of hours service for claims handling.

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A Heritage of Partnerships Much of SJL’s success can be attributed to our flexible approach to partnerships. We are able to quickly respond to market trends enabling both parties to take full advantage of new initiatives. As well as nurturing new partnerships with introducers we are constantly developing our proposition and have several longstanding partnerships who we work alongside. SJL holds close relationships with a range of membership organisations, service providers, industry suppliers, letting agents and accommodation providers. We endeavor to work closely with our partners to properly understand their requirements and collaborate to deliver compelling propositions to their customers.

Some of Our Key Partners

The British Insurance Brokers' Association (BIBA) is the UK's leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers. SJL are members of the British Insurance Brokers Association (BIBA) and are on the preferred panel of the 'Find a Broker' helpline

With a network of over 1400 companies the Hereford and Worcester Chamber of Commerce seeks to support local enterprise. Our memebership enables us to work within the local business community mening we are at the forfront of insuring a range of risks

Our Investors in People accreditation, binds us to a community of over 14,000 organisations across 75 countries worldwide. The Investors in People Standard is the sign of a great employer, an outperforming place to work and a clear commitment to sustainability

Lloyd’s is the world’s specialist insurance and reinsurance market. With expertise earned over centuries, Lloyd’s is the foundation of the insurance industry and the future of it. Led by expert underwriters and brokers who cover more than 200 territories, the Lloyd’s market develops the essential, complex and critical insurance needed to underwrite human progress.

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Letting Agent Rent Guarantee and Legal Expenses SJL Insurance Services have developed a market leading Rent Guarantee and Legal Expenses proposition, targeted at agents who want to incorporate rent and legal protection as part of their managed service to their landlords. The Rent Guarantee & Legal Expenses is sold on a “Per-Tenancy Agreement” basis and each letting/managing agent will be able to insure individual tenancies for either 6 or 12 months cover. Each tenancy will have its own start and expiry date, with the option for the letting/managing agent to renew for the same, increased or decreased period of cover. Letting/managing agents will pay in full for policy on either 6 or 12 month cover. No refund will be given, unless cancelled within the 14 day cooling off period.

Policy Benefits Rent and Legal Expenses

Repossession and legal dispute defence costs up to £25,000.

Nil Excess.

The serving of Section 8 and Section 21 notices.

Covers up to £5,000 per calendar month rent arrears.

Cover for rent arrears (until vacant possession has been obtained) up to: o 4 months indemnity for a 6 month policy. o 6 months indemnity for a 12 month policy.

Post eviction cover of up to 75% of the previous rental amount for up to 2 months after vacant possession

Year round 24/7 telephone advice line Assumptions of the Tenant All tenants must:

Have been successfully referenced by Vorensys, including tenant income verification and prior landlord referencing (Comprehensive Referencing)

Be able to afford the rent

Be clear of any adverse data

Tenants requiring guarantor(s) will be subject to ‘guarantor rates’ as per the below table

Non Guarantor Rates (Inc IPT)

Guarantor Rates (Inc IPT)

Monthly rent covered

Pricing Monthly rent covered

Pricing

6 month 12 month

6 month 12 month

£0-£1,250 £71.68 £119.47 £0-£1,250 £86.61 £131.41

£1,251-£2,500 £89.60 £149.33 £1,251-£2,500 £107.52 £164.27

£2,501-£5,000 £156.80 £261.33 £2,501-£5,000 £188.16 £287.47

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Tenant Referencing Tenant referencing is an essential process when letting out a property. Knowing exactly who is applying for a property will help make an informed decision about whether to enter into a tenancy agreement with them. Our tenant referencing, in partnership with Vorensys and Equifax, is thorough, fair & realistic and each application is assessed by an experienced human risk analyst as opposed to decision making software. You will be allocated a Vorensys referencing agent and a direct number, meaning they will understand how you operate and continuity between applications.

Comprehensive Tenant Referencing

Credit history search (Identifies defaults, CCJs, bankruptcies, IVAs & linked address credit history).

Linked address search (Locates undisclosed associated addresses & residence history).

Optional Bank Account Validation

Optional Financial Sanctions check

A full credit history on all of the addresses the prospective tenant has lived at over the past three years. Follow up references with their current (or a previous) landlord to ensure that all of the obligations of that tenancy agreement were met. Income is verified via an employer or accountant reference or via verification of other proof of income documentation (e.g. pension statement). In addition to these checks, we also employ additional anti-fraud technologies to identify potentially bogus referees. All of our reports are delivered in a clear, concise, 'plain English' format delivering the information you need without unnecessary jargon.

Company Credit Check Verification of Companies House details

Director details

Adverse credit history

Credit score

Monthly trade credit limit

In partnership with Equifax we're able to offer access to numerous data sets should you require access to additional information

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Adding, Cancelling & Renewing Policies

Properties are added via an Emailed Form:

Adding properties to cover

• Individual tenancies can be added for either 6 or 12 months cover and each policy have its own start and expiry date.

• The request is emailed to SJL Insurance – Info@sjlins.co.uk

• If you need to make amendments or cancel the request, please contact SJL Insurance Services on (01905) 27775.

• Confirmation of cover and your policy documents will be emailed back to you within 24-48 hours.

Cancelling a policy

• If you need to make amendments or cancel the request, please contact SJL Insurance Services on (01905) 27775.

• No refund will be given, unless cancelled within the 14 day cooling off period which is determined by the policy start date OR cancelled prior to the start date of the policy

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Renewal of Insurance

When the policy is due for renewal SJL Insurance Services will send renewal terms for you to action

Tenancies on cover will auto-renew for the equivalent term originally purchased unless you tell us otherwise.

You have the option to increase or decreased the insured period at the time of renewal

If you wish to make any changes, notify SJL Insurance via email on 01905 27775 or info@sjlins.co.uk ahead of the policy renewal date.

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What is a Considered A Passed Reference? In order for a tenant to be eligible for Rent Guarantee insurance, the tenant must have met the following

criteria and have been referenced via Vorensys OR a pre-approved provider.

Comprehensive Referencing

• Tenant must be able to afford their rent share (earnings are 2.5 x rental amount) • Tenant must have no adverse data (CCJs, Bankruptcies, etc.) • The tenant must have positive Landlord (if applicable) and Employer references. • Tenant must have an overall ‘pass’ verdict

A landlord reference is considered positive if the following criteria are met:

Rent has always been paid promptly Tenant did not damage the property over and above wear and tear

There have been no justified complaints about the tenant during the tenancy (E.g. From Neighbours)

An employer reference is considered positive if the following criteria are met:

Employment contract length outweighs the term of the tenancy Tenant income is verified

*Please note that all tenants must have been referenced against their applicable rent share.

Permitted Occupiers All permitted occupiers over the age of 18 should be included on the tenancy agreement

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Making a Claim

Who should make a claim? Claims will generally be made by you, the Letting/managing agent, as the policyholder. However, should you wish for your landlord to pursue the claim you will need to arrange for a Power of Authority to be signed and be provided to Abbey Legal at the point of claim.

When can I make a claim? This is a "claims made" policy; therefore, this policy covers only claims notified to Abbey Legal during the period of insurance and not back dated! We will only cover claims that you tell us about during your period of insurance.

Please be reminded that as the policyholder it is your responsibility to ensure that all of the terms and conditions of this policy are met. Late notification to Abbey Legal of a potential claim may prejudice your claim and the rental amount that you may be entitled

How should I make a claim? To report a claim, you should call Abbey Legal who will explain the next steps and the documentation required.

You must tell us as soon as possible when you become aware of any cause, event or circumstance which does or may involve you and which has given, or may give rise to a claim, dispute, legal proceedings or you are seeking possession of the property. Where we have accepted notification as described above, we will treat any later claim regarding that notified cause, event or circumstance as though the claim had been notified during the period of insurance. We will send you an insurance claim form that must be completed and returned as soon as possible. Claim contact details are:

The Claims Department Abbey Legal Protection

20 Fenchurch Street London

EC3M 3AZ

0345 350 1099

claims@abbeylegal.com

Abbey Advice Line 0333 234 2691

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Making a Claim (Continued)

Timing Details 7 days after tenant is in rent arrears as determined

by the rent due date. (regardless of how much they are in arrears)

Letting/managing agent to contact tenant to establish reason for rent being in arrears.

Letting Agent to be able to demonstrate this has occurred.

14 days after tenant is in arrears Letting/managing agent to contact tenant again.

After tenant contacted Letting/managing agent to call Abbey Claims Line (0345 350 1099) to notify us of a potential claim.

Timeline for further contact between Letting/managing agent and Abbey Legal to be agreed at this time.

As agreed between Abbey Legal and Letting Agent At a time agreed by letting/managing agent and Abbey

Legal, the following key rental documents are to be provided to Abbey Legal:

All signed tenancy agreements;

Completed referencing checks for all tenants;

Deposit certificate;

Prescribed information explaining how the deposit has been protected

Rent schedule;

How to rent booklet;

EPC Certificate;

Gas Safety Certificates;

HMO Licences (if applicable)

Once tenant is two months in arrears We will issue statutory eviction notices on your behalf,

as required

Rent Protection Once a successful claim has been made under the Eviction section of cover, the Rent Protection Section will activate.

Rent will be paid monthly in arrears at a rate of 1/30th for each continuous day that it is in arrears subject to the maximum amounts shown in the policy schedule.

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Policy Summary, Schedule and Statement of Fact

Schedule

Policy number

Policyholder

Address

Business description Managing agent of residential property

You

Address

Business description Residential landlord

Period of insurance

From To (Both dates included)

Premium £

Insurance Premium Tax £

Total £

Your Sections of cover The most that we will pay any one claim

1. Excess for our choice of representative

2. Excess if you are able to choose your own representative

Eviction £25,000 £0 £1,000

Rent protection Up to (4/6) month’s rent plus up to 75% of 2 month’s rent following vacant possession if the property requires repairs in order to be re-let

£0 Not applicable

The most that we will pay for all claims in the period of insurance

£100,000

Territorial limits UK

Abbey Advice Line 0333 234 2691

Claims Line 0345 350 1099

Issue date

Underwritten by Markel International Insurance Company Limited subscribing to Contract Number APG001/2016

Markel Corporation is the ultimate holding company for Abbey Protection Group Limited.

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SJL Insurance Services

LEGAL PROTECTION INSURANCE

Statement of Fact

Policyholder :

Policy Number : Renewal/Inception Date :

You must notify SJL Insurance Services immediately in any of the following circumstances, providing full

details in order that your premium and terms can be reassessed: If there is any cause, event or circumstance which may give rise to a claim being made under this

insurance which has not already been notified to Abbey Legal Protection

If an Insurer has ever refused commercial legal expenses insurance, cancelled mid-term, imposed

special terms or declined to renew a commercial legal expenses insurance policy

If you have had more than ten disputes or legal proceedings to which this insurance would apply

during the last 3 years;

If you have had any disputes or legal proceedings to which this insurance would apply which has

incurred total costs in excess of £30,000 in the last 3 years;

If any of the proposed properties to be insured have a monthly rental value exceeding £5,000 per

tenancy agreement;

If you do not notify any changes to this Declaration it might affect any claim you make.

All terms and conditions are as per the policy wording.