Landlords 'must not cut back on insurance'

News Category: Management

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Landlords have been warned that cutting back on insurance to save money can represent a false economy in the long run.

Recent research from insurer Direct Line for Business has revealed that nine per cent of landlords have cancelled insurance on their properties in recent months amid fears over reduced cash flow.

However, advice portal Property Hawk has cautioned that doing so could result in property owners being liable for "millions of pounds" under public liability were something to go wrong.

Chris Horne, the website's editor, reminded landlords that going without insurance is "really not worth it" and advised shopping around for cheaper deals instead.

Mr Horne also suggested that conditions in the letting market are starting to pick up, stating that recent increases in average rents will mean that cash flow issues may soon ease.

He said: "Over the last six months, our research shows that rent [has] actually risen 2.2 per cent … That's good news for landlords."

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