Landlords told to take out insurance

News Category: Legal

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Landlords have been advised that they should take out insurance in order to protect themselves from issues such as tenants defaulting on rent payments.

Julie Owens, head of home insurance at moneysupermarket.com, told people considering becoming buy-to-let landlords to gather as much relevant information as possible before moving forward with the venture.

"It is important to have a good contract in place to know where each party stands should the tenant and landlord relationship fall sour," she added.

Ms Owens was speaking after the website found that landlords can purchase insurance from as little as £100 a year.

For a policy with rent guarantee cover this figure increases, but insurance is still available for landlords from around £130 a year.

Earlier this year, the new housing minister Grant Shapps stated that a planned new register for landlords will be scrapped.

The National Landlords Association welcomed the decision, stating that a register is not the right way to regulate the industry.

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