Latest Insurance News
Rising credit card debt 'makes buy to let property insurance vital'
30 Jul 2010
Bank of England figures have revealed a rise in UK credit card lending of £0.1 billion, which could emphasise how important buy to let property insurance cover is to private rental landlords.
As more British consumers struggle to keep up with the monthly repayments on credit card loans, those in private accommodation may also have difficulty paying their landlord and, as a result, fall into rental arrears.
Property owners could potentially protect themselves from tenants in arrears, however, by ensuring that they have an adequate buy to let property insurance policy in place, which could include a rent guarantee provision.
Chris Tapp, director of Credit Action, suggested that the problem of rising credit card debt could be one that continues for some time.
He said: "It is a potentially worrying trend, and one we need to keep a very close eye on."
Earlier this month, the Residential Landlords Association commented that the number of tenants falling behind with rent payments in the last three months was "horrendous".
Posted by Jonathan Walker
