New landlords who are waiting out the property
market by renting out their homes should make
sure they have the appropriate insurance.
This is according to one comparison site,
which notes that landlord insurance can be
bought for under £100 from Simple insurance.
Moneysupermarket.com
warns landlords coming into the private rented
sector for the first time that they must first
ensure they are protected against arrears.
The rise in new landlords is attributed to
growing tenant demand, landlords planning
to expand their portfolios and increased availability
of buy-to-let financing in the market. In
addition, including cover for other contingencies
can also save more trouble in the long-term.
Moneysupermarket.com advises would-be and
accidental landlords to ensure that they have
a policy which covers rental arrears. Julie
Owens, head of insurance at the site, said:
"Landlord insurance which includes Rent
Guarantee cover or legal expenses can be more
expensive, however if things go wrong between
a landlord and tenant legal proceedings can
involve a hefty cost. New landlords entering
into the market should make sure they protect
themselves by taking out a special landlords'
insurance policy, according to Moneysupermarket.com.
Since the economic downturn, more people have
turned to renting while they are waiting for
house prices to recover.
This
could mean that more homeowners are putting
themselves at risk by not having the right
insurance policy to cover a rented home. Research
released by the National Landlords Association
claimed that one in three landlords last year
had outstanding payments from their tenants.
Ms Owens advised: "Whether you're looking
at buy-to-let property for investment, extra
income, or because you cannot sell your house,
it is essential to have sufficient insurance
to cover any financial losses connected with
letting out a property. I advise insuring
yourself against these circumstances before
they arise, it is always better to be prepared
and there are a number of suitable insurance
policies for landlords on the market. The
varying levels of cover available means it's
essential to do your research and pick the
policy that is the best fit for your circumstances,
policy wording can differ so it is vital to
check the small print to determine exactly
what is covered. It
is important to have a good contract in place
to know where each party stands should the
tenant and landlord relationship fall sour."
Get a cheap buy-to-let property insurance
quote today from Simple Landlords Insurance.
When choosing your provider look for policies
with the following cover:
