A recent YouGov survey, commissioned by Paymentshield, showed that 23 per cent of landlords did not have landlords insurance; while six per cent were unsure what insurance they had altogether.
Landlords insurance will not only protect assets inside the property and the building itself, but also other risks in letting a property, such as loss of rental income.
Last month, the Association of Residential Letting Agents reported that 55 per cent of letting agents believe that demand for rental properties have outstripped supply. With many potential landlords seeing this as an earnings opportunity there are many new landlords entering the market, less educated in the process of managing a rental property.
Tim Johnson, chief executive at Paymentshield, said:
“Brokers are best placed to advise new and existing landlords on their insurance needs, whether that’s a one off ‘hobby let’ or a complete residential letting portfolio. With insurance often becoming a ‘tick box’ subject, it’s easy to forget the other benefits that a quality landlords insurance product can give.
“Getting the right product for your needs is essential. For example, Paymentshield offers up to 15% of buildings sum insured for loss of rent, covering arrears risk during what is at present, a turbulent lettings market and our sister company Towergate Home & Protect can cater for landlords with large portfolios looking to have all their properties covered by one policy”.
“The influx of demand for rented accommodation presents a huge opportunity for brokers to supplement their income by offering their knowledge and experience to both landlords and their tenants. In addition to landlords insurance, the broker should also be discussing the tenant’s insurance needs such as contents insurance and even short term income protection to help ensure they can still pay their rent should they find themselves unable to work due to accident, sickness or unemployment."
