Are You Still Covered Without DAS Insurance?
The PDPLA has historically paid £10 per member per year for DAS tax investigation cover, Legal Defence cover and a very general legal advice plus various other minor services tied up with small print.
The RLA are now giving us more extensive tax investigation cover for no extra fee. This was perceived to be the most useful element of the cover, especially as HMRC are now more interested in landlords so this could be of use to any of us.
The question is, do we need to retain the legal cover? (With the duplicate tax cover as this comes as a package)
At the AGM there was a unanimous vote to end the cover and save over £2000. Therefore, unless significant members who were not at the AGM object, we will not renew the DAS policy.
This means that some of you are no longer automatically covered for some risks which we know will be important to a small proportion of members - so we urge you to check the details below and decide whether you need this cover or some additional cover or, in your situation, these are acceptable risks that do not need insurance.
For tax investigation cover:
• You must be a full paid up member of the PDPLA / RLA.
• You must be the main member named on the RLA account.
• Your rental income must be less than £500,000 per annum.
• You must be a conscientious taxpayer.
You should have received an email from the RLA "We've got you covered for tax protection" If not login to your RLA membership and in myRLA you will see the option for Tax Protection in the menu, bottom left.
The cover we lose when we cancel the DAS policy is assistance in defending ourselves;
• If we are prosecuted in a criminal court case.
• In a civil action due to unlawful discrimination
• In a disciplinary hearing - regulatory or professional
• In a motoring offence i.e. speeding but not parking.
DAS would appoint a solicitor to represent you in defending the case.
BUT
• We know of no one who has used the cover
• It is complex with excesses and max claims figures
• This makes it hard to describe to members and for members to remember what it covers.
• Some of us may already have the cover as part of another policy.
• The claim limit is £25,000.
• DAS will only defend cases that they consider have a good chance of success.
• You normally have to use their people and agree to any settlement they reach.
On the other side of the argument-
• If you were, say, unjustly prosecuted, being able to get professional representation could save you aggravation and cost.
• The cover is not restricted to landlord and tenant issues.
This cover is often available as a small extra with property insurance should you wish to consider purchasing it elsewhere.
The best examples DAS could give of potential claims were-
"Should a member as part of their membership be accused of unlawful discrimination such as race or sex discrimination and action is taken against them in a civil court, DAS would appoint a solicitor to represent them in defending in the action brought.
Under the cover we would also defend a member if they are being prosecuted for an offence in connection to the use of driving a motor vehicle such as a speeding offence. We would not provide cover for parking offences or for a motor vehicle for which the member does not have valid motor insurance."
So please ensure you have the cover you believe you need for your business and that the RLA cover is correctly setup and accessible should you ever need to invoke it.