Landlords need to make sure their property is insured

Posted: 18 Jun 2008 13:18:00 GMT

Falling house prices and tighter lending criteria are making buy-to-let investors more prudent and it is important that they get the right insurance for their properties.

Falling house prices and tighter lending criteria are making buy-to-let investors more prudent and it is important that they get the right insurance for their properties.

That is according to landlordzone.co.uk who has suggested that investors purchasing new properties take out a policy that gives them emergency assistance and breakdown cover.

Tom Entwistle, editor of Landlordzone.co.uk, said: "It is always a good idea to have emergency cover and a lot of landlords do use that because it makes it easier for them to manage."

In the present economic climate credit crunched tenants may be more likely to fall into arrears with their rental payments so, Mr Entwistle suggests, that landlords also take out "rent guarantee insurance".

As well as offering protection for rental arrears, rent guarantee insurance gives landlords "a certain amount of cover for legal protection as well, if the landlord has to take a tenant to court".

A quarterly survey of the Association of Residential Letting Agents (Arla) has shown that demand for rental property is higher than supply in some areas of the country. Greater London and the South East have the greatest imbalance.

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