Landlords 'should have insurance in high-risk market'

Posted: 04 Jun 2010 12:16:49 GMT

Landlords are being urged to take out rental guarantee insurance to protect against cash-strapped tenants.

Letting out a property even to a usually reliable renter could be risky because people can lose jobs and find themselves in financial difficulty, according to an expert.

Malcolm Harrison, spokesman for Let Insurance Services, believes landlords should always have a backup plan.

"We are still living in really troubled economic times so it is inevitable that some people are going to have problems with their rents," he said.

Mr Harrison added that landlords need to be "fully aware" that this is a time of "higher risk", but that more people are moving towards renting property than homeownership, which could "bump up" the buy-to-let market.

A press release from Let Insurance Services revealed that only half of letting agents discuss rental guarantee insurance with landlords.

It also showed less than a third offer to arrange provisions for loss of rent and legal expenses.


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