Landlords warned to review buy-to-let insurance
Lee Mooney, commercial director of Paymentshield, said: “Just as mortgage requirements can differ when purchasing a buy-to-let property, the cover needed to protect properties occupied by tenants is more complex.
“Purchasing a buy-to-let property is a major investment and it’s essential that landlords also invest in a comprehensive policy to protect them from the potential damage or losses involved with letting a property.”
Specially designed landlords insurance products provide policyholders with a greater level of protection against damage or loss, over and above circumstances typically covered by traditional home insurance, such as fire and theft.
House prices have risen by up to 9.3% in the past year making it increasingly difficult to get onto the property ladder and leaving people with no other option but to rent.
Mooney added: “Whilst this is great news for property investors, it reinforces the importance of ensuring that landlords are investing in the correct cover – not only to protect their property and contents but also their legal liabilities as the property owner.
“Landlords could be financially ruined if a loss occurred and they found their insurance did not provide appropriate cover leaving them with no choice but to fund their own repairs, replacement or even rebuild.
“Intermediaries are in the perfect position to communicate this to clients and it’s vital that as an industry, we work together to educate clients about the need for adequate insurance.”