Landlords need to get insurance cover for rental arrears

Posted: 05 Jun 2008 13:20:05 GMT

Buy-to-let investors have been advised to check their insurance policies to ensure they are covered if their tenant fails to pay the rent.

Buy-to-let investors have been advised to check their insurance policies to ensure they are covered if their tenant fails to pay the rent.

AXA has said that a number of landlords may be left footing the bill for rental arrears if they do no have sufficient insurance.

With an AXA Buy To Let policy, landlords can pay an additional sum which will provide them with six months rent and legal expenses of up to £50,000 if they need to regain possession of a property.

Michael Keating, AXA's general manager of personal lines intermediary, said: "We would strongly advise all buy-to-let landlords to check out the small print of their policies and make sure they have the cover they might need."

The demand for rental property is still strong according to a recent report by the Department for Communities and Local Government (CLG), which found that the UK needs some 50,000 more rented properties annually.

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