1 in 5 Landlords still lack Specialist Landlord Insurance

15 December 2012 Categories: News

1 in 5 Landlords still lack Specialist Landlord Insurance

According to new research conducted by Direct Line for Business, around 20% of landlords still lack specialist insurance for their rental properties. This figure has come down dramatically over the last few years however it still leaves thousands of landlords with potentially huge costs should something go wrong with either their property or tenancy.

Saying that, managing director of Mortgages for Business, David Whittaker, recently commented on how low the figure has become, “I would have expected the figure to be higher especially when you factor in ‘accidental’ landlords who own property outright and don’t have a lender to nudge them about such things.”

He then went on to say, “Landlords who do have the appropriate insurance will have had to have made a commercial decision about the extent of cover. Things like rent guarantee and accidental damage can really push the price up, so landlords need to weigh up the risks carefully to decide what works for them” after it emerged that landlord insurance accounts for between 15% and 20% of annual costs in most cases.

Jazz Gakhal, head of Direct Line for Business added, “You are unlikely to be covered in a standard home insurance policy, and there are many valuable extras available, including rental income protection if your property is uninhabitable due to an insured event such as a fire or a flood.”