Research showed that a significant number of landlords do not have suitable landlord insurance while the number of rental arrears is rising.

According to the research, many landlords are at risk of under-insuring their properties. Being a buy-to-let investor, it is recommended to get the insurance from the specialist landlord insurance company. Yet, report demonstrated that only 67% of the landlords are holding valid landlord insurance, which presumably suggesting that 33% are either with standard household insurance or no insurance at all.

It is important for landlords to understand the difference between standard household insurance and landlord household insurance. Most of the standard household insurance policies are designed for Owner-Occupier who lives in the premises and having this insurance would not be able to cover the landlord from common issues (such as malicious damage or loss of rent). Therefore, individuals who invest in rented properties should purchase a specialist Landlord Insurance policy - which would cover them with specific issues arise within their properties.

Other than Landlord Household Insurance, combined Legal Expenses and Rent Guarantee Insurance is also available to cover landlords from rental arrears and other related legal costs. Upon the availability of this type of insurance, only 12% of buy-to-let investors are covered with it.

In addition, another recent report, carried out based on 500 private landlords, showed that 30% of the landlords had experienced rental arrears in the second quarter this year - compared to 18% in first quarter last year.  Out of the 30% of landlords, 38% had covered the cost of the non-payment with tenants’ deposit, while 32% had taken direct actions to evict their tenants. This enormous growth in tenants’ arrears, expected by 71% of landlords, should have warned and signalled the buy-to-let investors on the importance of the various options of landlord insurance in protecting their rented properties.

To purchase the appropriate landlord insurance, please visit Discount Landlord.