Landlords Insurance Vital

Many of us do not own our own home and are in rented accommodation. When times are hard and it is difficult to make ends meet, some think that not paying their rent can help. However, this is not a good option and should be avoided at all costs. This is becoming an increasing problem for landlords who are worried they will not get monies owed to them.

This is why landlords should think about taking out rent protection insurance. According to a leading online insurance services company, this kind of cover can be extremely useful for new landlords and can protect them against tenants who do not pay what they owe. It explained that the insurance would help customers meet their mortgage payments under such circumstances.

Landlords have bills to pay too and if they are not getting income from their properties this could lead to dire financial straits for them as well.
A managing director of the company said the current economic climate meant tenants who would previously have been considered a safe bet may find themselves unable to pay their rent. He stated: "You probably wouldn't have wanted to take out insurance in the past [but] you would probably want to take it out now."

Recently, the National Landlords Association reported that 71 per cent of its members expect rent arrears to increase, compared with one per cent who thought they would fall. It was also found that 67% of those questioned have experienced problem with rent arrears in the past and 37% are having payment difficulties with current tenants.

The economy is constantly changing and so individual circumstances also change. It is better to be prepared for rough times and take out insurance.
A good way to prevent rent arrears is for landlords and tenants to keep in contact. If any problems arise they can be dealt with in a friendly informal manner if the lines of communication are already open.

If you would like to know more about insurance why not ask AnswerBank Insurance.