Landlords advised to account for risk of arrears

Posted: 16 Jul 2010 11:29:27 GMT

Difficult economic circumstances make it important that buy-to-let landlords protect themselves against all possibilities through adequate insurance cover.

That is the suggestion of Let Insurance Services spokesperson Malcolm Harrison, who explained tenants can find themselves in difficulty "through no fault of their own".

The risk of redundancy could mean insuring against the possibility of arrears and people being unable to make payments is all the more important to those renting out property.

And Mr Harrison argued a cheap policy is often not the best choice, as it may not take all eventualities into account.

"There are too many landlords and agents who are not getting enough protection to counter the degree of risk," he said.

The expert's comments came after moneysupermarket.com warned owners who decide to let their property after moving to a new one that standard insurance policies are often invalidated if an income is taken from the home.


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