Legal & General has announced the completion of the pilot phase of its new ‘rental protection plan’ for tenants, claiming to be the first UK provider to offer this type of product.

The pilot has been carried out in conjunction with the Mortgage Advice Bureau and is currently only available via MAB intermediaries, including those based in agencies, before full roll-out later this year.

There is a choice of three products, including life insurance with critical illness cover, specifically designed for tenants.

Tenants also have the opportunity in certain circumstances to increase the amount of cover if their rent increases, they relocate, or otherwise change tenancy agreement without the need to go back through medical underwriting.

Legal & General says that the insurance market for private tenants is under-served.

Craig Brown, Director, Legal & General intermediary, said: “Nearly a quarter of UK households will be renting by 2023 and the protection needs of these families will need to be met by products and solutions specifically designed for them.

“First-time buyers usually receive a protection ‘nudge’ when they seek mortgage advice, but most renters do not benefit from the same prompt. This leaves tenants facing a greater risk of vulnerability due to unforeseen circumstances.”

Peter Brodnicki, CEO of MAB, said: “The tenant market is completely untapped with the current focus totally on protecting the landlord.

“Tenants have the same outgoings as home owners, and so keeping both groups in their home should be our priority.

“Legal & General worked closely with us to deliver a product we felt would really resonate with tenants, and we have found that it has done exactly that.”