Please Note: This Article is 2 years old. This increases the likelihood that some or all of it's content is now outdated.

One of the UK’s largest insurance companies says there is no legal framework available to it that would enable the insurance giant to pay claims now that evictions have been suspended for three months by the government.

One of the UK’s largest insurance companies, Direct Line, has confirmed to LandlordZONE that it has closed its doors to new rent guarantee policy claims, but will honour those which are already under way.

The shock news confirms our story earlier this week that key insurance companies in the UK were withdrawing, or had already withdrawn, from the rent guarantee market.

Direct Line’s announcement will not be welcome news for its thousands of rent guarantee landlord clients, not least because until relatively recently it ran TV adverts promoting the product starring Hollywood actor Harvey Keitel (pictured).

“We are currently in unprecedented times as the impact of COVID-19 spreads through all aspects of the UK economy,” a statement from spokesperson Unni Henry from the parent company The Direct Line Group, says.

“The Government’s commitment is that no tenant will be evicted during a three month period and that landlords are able to apply for a three month payment holiday on their Buy to Let mortgages if necessary.

“During this three-month period we cannot pay any new rent guarantee claims as there is no legal mechanism to allow us to take a claim forward.

“Once this three-month period has ended, and providing the Government re-establishes the legal process, we will be able to progress with the claim as per the policy guidelines.  

“Following the end of this period landlords and their tenants will then need to work together to establish affordable repayment.”

Henry says Direct Line is offering landlords practical support so they can help their tenants during the crisis including digital templates for payment plans.

Also, its legal advice helpline will continue to be available throughout this period. Landlords should refer to their policy documents for contact details.

“If the landlord’s rent guarantee claim has already been accepted and they are in receipt of rent guarantee payments, these will continue to be paid during the pandemic,” says Henry.

“For discussion on individual claims, landlords will need to contact the claims team via the number in their policy documents.”

Please Note: This Article is 2 years old. This increases the likelihood that some or all of it's content is now outdated.


  1. i’ll assume that if they were in rent arrears before (say in one case for 10 months) that it will still be possible to later return to visit it? alos if you have empty properties that are meant to be inspected every 7 days under the empty property clause that this is now waived?

  2. Does this mean that if there was a catastrophe at a property where the tenants were unable to stay that we would be unable to claim for the lack of rent? It took months to get a property re-inhabited after a tenant set fire to it by accident and that would be a lot of money to lose when the rent guarantee was taken out in good faith. We are also paying for cover we wouldn’t receive so do we get a rebate?

  3. I don’t see how having “no legal mechanism to allow us to take a claim forward” stops them from paying landlords, only that is stops them from starting court action against the tenants,

    Sounds to me that they are trying to get out of their obligations under the contract.

  4. Notice may still be served in all it’s previous forms – the only change is that an additional months notice is required. That means that if notice is served today eviction proceedings can’t be commenced (only needed of course if the tenant fails to vacate) for three months instead of two.

    That’s it!

    “While the Bill ensures tenants can’t be physically removed from their property for the next three months, landlords will still be able to serve them notice to kick them out once the three month period ends.
    The new legislation has extended the notice a landlord must give from two months to three – meaning that if a notice was served today, a tenant would have three months before they are evicted.
    Shadow housing secretary John Healey said the Bill ‘just gives [renters] some extra time to pack their bags’.”


Please enter your comment!
Please enter your name here