Rent Protection? Go Directly To Insurance Company


With effect from 1st July 2009, Landlords who’s interested in the Renter’s Protection Insurance will have to directly liase with JLT as the old method of distributing the policy is in conflict with MAS’s policy.

Dear Estate Agent,

Subject: Rent Protection Insurance – Revision in Distribution Method

We regret to inform that the Monetary Authority of Singapore (MAS) has recently determined that estate agents cannot promote insurance products for referral fee unless the estate firms are registered with General Insurance Association of Singapore (GIA) as Trade Specific Agents. To register as GIA’s trade specific agents, the agents of estate firms have to undergo training in lieu of an examination to comply with MAS’ competency requirements. Estate firm will also need to enter into an agency agreement with the insurer.

Hence, it has been decided that the distribution model for our Rent Protection Insurance (RPI) shall be modified so as not to breach MAS’ requirements. With effect from 1 July 2009, landlords will now purchase the RPI themselves directly from the website, instead of applying through estate agents. Your login userid and password will cease to be valid at our website and no referral fee shall be paid to estate agents for policies purchased from 1 July 2009.

For those policies which have already been purchased through estate agents before 1 July 2009, we will ensure that referral fees are paid to the respective estate agents accordingly.

We apologise for the inconvenience caused and thank you for your support thus far. Going forward, should your landlord requires clarification on the RPI, please inform them to visit our website or contact our RPI hotline directly at 64119301.

Rent Protection Insurance in Singapore by Jardine Llyod Thompson and QBE

Rent Protection Insurance in Singapore by QBE and Jardine Lloyd Thompson
Rent Protection Insurance in Singapore by QBE and Jardine Lloyd Thompson

It’s confirmed.

I was attending to a introduction session in our office by a lady from Jardine Lloyd Thompson on their new rent protection insurance product produced by their company and QBE. The launch will be on April’s Fool (1st April 2009) opening only to Real Estate agents to sell to their Landlords.

Cost of the premium is 15% of one month of rental (excluding GST), coverage of up to 24 months of the tenancy, which sounds alot more affordable than I thought. I had the misconception that this will be a premium cut from the rental every month.

Benefit kicks in when the policy is in effect when you have a loss of rental income with the following:-

  • Tenant defaulting
  • Tenant absconding
  • Eviction and/or Failure to surrender vacant possession
  • Loss or damage to property
  • Prevention of access
  • Murder or suicide
  • Death of tenant under sole tenancy
  • Loss of rental income due to real estate agent absconding with rent paid by tenant (you’re extremely unlucky if you’re that guy)
  • Legal costs
  • Agents commission for replacement tenancy agreement.

It seems and sounds really good, with some catches here and there.You can only get the insurance with a new tenancy term with your property and not when your current tenancy term is in effect.

Remember, you can only get this policy through property agents, so contact your usual leasing agent for more details.

I’d advice you to visit their site (the site is down for me, try it on 1st April 2009) and download the PDFs on their policies to understand the product further. If you need any clarification, you can also contact me questions on how it works.