Legal costs insurer to provide professional fees cover to mydeposits through 2012.
Arc Legal Assistance has extended its contract to provide professional fees cover to mydeposits, formally known as Tenancy Deposit Solutions, following the success of the scheme set up as a result of government legislation to protect tenants in dispute with landlords over deposits.
Arc’s contract, extended to 2012, will also see the cover enhanced to protect oversees landlords where written approval is requested and given and some changes made to the cover provided for managing agents that are using the scheme.
Arc arranged insurance on over 200,000 deposits in the first year of the scheme, generating over £1.1m net premium income with over £175m worth of deposits protected by mydeposits. The cover is expected to protect up to 550,000 deposits over the first three years.
Mydeposits is a joint venture between Hamilton Fraser Insurance Solutions and the National Landlords Association. It is one of only two insurance-based schemes approved by the Department for Communities and Local Government to offer such cover. Arc became one of only two companies to develop a dedicated insurance product ahead of the legislation introduced in 2007.
Richard Finan, director of Arc, said: “Our experience and understanding of the landlord and tenant market sets us apart from others. The extension of our contract following the success of mydeposits is a strong indication of our ability to deliver unique services and reflects Hamilton Fraser’s confidence in our business model.”
Eddie Hooker, managing sirector of Hamilton Fraser, added: “Since its introduction last year, we have been delighted with the success of the scheme. Arc is an important partner and their contribution to its overall success cannot be underestimated.”
The policy is underwritten by Inter Partner Assistance, the underwriting provision of AXA Assistance in the UK.
