Rent protection insurance recommended for buy-to-lets

Solicitors in Northern Ireland with clients in the buy-to-let sector may want to advise them to "really consider" taking out rent protection insurance, which is vital in the current environment.

According to Let Insurance Services, such cover against non-payment of rent by tenants could especially come in handy for new landlords who may be struggling to meet their mortgage payments.

"The whole thing about insurance is that you only insure what you can't afford to lose," said the organisation's managing director Michael Portman, who added that those with lots of properties may afford to take the risks.

"But a person who is new to being a landlord and, for example, can't sell their house and is worrying that they have mortgage payments to pay out, then clearly rent protection is very important to them," he stated.

According to the National Landlords Association, 71 per cent of landlords expect rent arrears to increase in 2009, while some 37 per cent are already experiencing problems with current tenants.
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