21st
Apr 2017
Most insurance and landlord insurance policies include building and contents, emergency assistance, liability and legal cover, it should not be taken for granted that the insurance company will pay up if tenants are unable or simply don't want to pay their rent and fall into serious arrears.
The CEO of an online letting agent, Jonathan Daines, said: “It’s well worth landlords doing their homework and checking their existing policy or switching to a new one as it can be a costly, painful and stressful mistake if a tenant suddenly falls into arrears leaving the landlord to pick up the pieces.”
The ONS' (Office of National Statistics) figures for 2016 shows that 153,691 landlords in England and Wales ended up in court to get their property back from tenants. 35% of the landlords having to resort to this action were awarded court orders instructing county bailiffs to repossess the properties.
There are approximately 4.3 million privately rented 'homes' in England and Wales and from the ONS' statistics, it could be likely that 4 out of every 100 landlords will have to endure or will be at risk of finding themselves unable to rent out their property for an average of 42 weeks.
Daines added: “The figures are clearly very worrying and compounding this problem is the retrieval of lost rent and the time it takes to do so by landlords, who perhaps didn’t ever anticipate tenant problems and as such don’t have sufficient insurance cover in place to protect their rental income.”
If you require insurance our preferred partner Alan Boswell Group are offering PIMS members a 'Price Beater' Offer - guaranteering to beat your current premium for like-for like cover.
Click here to see the details and get an instant quote.
News Archive »