Insurance News Archive
Rent guarantee insurance recommended for new landlords
Written by Jonathan Walker
Landlords that are new to the private rental sector have been advised to invest in rent guarantee insurance to protect themselves against arrears.
Jane Baker, writing for financial advice website LoveMoney.com, said that rent guarantee insurance is worth considering in the current economic climate.
"There may be times when the property is unoccupied - known as void periods - when you won't be getting any rental income at all," she explained, adding that landlords need to plan ahead so that they will be able to repay their buy to let mortgage.
Ms Baker also recommended that proprietors make sure they have emergency cover as part of their landlords insurance, to cover the cost of making urgent repairs to electrical systems or heating, for example.
Her advice follows similar guidance from Ellie Irwin, spokesperson for the National Landlords Association, who recently said that rental arrears disputes usually take six months to resolve, so rent guarantee insurance is important for covering payments in the interim.
28 Aug 2009
