Landlords 'need to have the right insurance'

By Marianne Straker, Fri 16 Jul 2010 - Published in Home Insurance

Buy-to-let mortgage holders are failing to take out enough insurance to cover themselves against rental arrears, it has been suggested.

A recent report by price comparison website moneysupermarket.com pointed out that standard home insurance is not valid when people start to earn an income from their property.

The organisation also recommended that landlords take out specialist insurance policies, which will cover them against eventualities such as damage and tenants being unable to pay their rent.

Malcolm Harrison, a spokesperson for Let Insurance Services, also stressed the need for landlords to look into the policies open to them, claiming that rental guarantee insurance and legal expenses cover are among the most important.

"In the present economic circumstances, tenants can get into trouble through no fault of their own. There are too many landlords and agents who are not getting enough protection to counter the degree of risk," he explained.

Mr Harrison also recommended that buy-to-let mortgage holders do not settle for the cheapest form of specialist landlords insurance they find and advised them to find the policy which best covers their risks.

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