Agents Urge Landlords And Tenants To Retian Rental Insurance

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by Elisha Sanders

Fears of a recession are growing within the U.K. and Ireland, which is leading many to reduce spending on non-essential services. One service that may see a decline, according to industry sources, is insurance on rental properties, both for the landlords and the tenants. However estate agents are urging tenants and landlords to retain their insurance, as it can be vital to the up keep of a property, and may well save money in the end.

Houses aren’t selling well currently, either in the U.K. or in Ireland, however the renting market is still going strong.

Philip Suter, a long time agent, said that this isn’t the first time the market for buying has been in a slump whilst the to let market was doing quite well. During the equity issues of the late ’80s early 90s, many house owners who couldn’t sell properties looked to letting them instead. According to Suter, the unemployment rate being higher at that point made it harder to rent properties than now.

However there are now indications that unemployment may rise in the near future, but because of the boom in the ‘buy to let’ market, there will be no shortage of rental properties. This boom could even lead to a fall in rental prices, as new properties aren’t selling well and many are being let, resulting in an oversupply in the market.

Consumers are reducing their spending, with the effects of the credit crunch and inflation being felt, however agents are predicting that they may be looking to reduce their spending on insurance, as a means of lifting some of the financial burden. Suter believes this is partly due to misinformation about what landlord and tenant rental insurance covers. Landlords often don’t realise that they need contents insurance for unfurnished properties, however without this, their carpets and curtains aren’t covered. Likewise, tenants often don’t realise that they require contents insurance because they mistakenly believe their landlord’s policy will cover their belongings, which under U.K. law, it cannot.

This has lead to the rise of speciality insurance agencies who provide solely for landlords and tenants of rental properties. Endsleigh, HomeLet, and Rentsheild Direct all offer tailored packages to landlords and tenants, to cover for the property, contents, repairs, and legal costs for the former, and contents insurance for the latter, that will move when the tenant moves.

Some estate agencies, such as jml Property Services, have introduced online services that allow tenants and landlords to search for quotes and buy insurance online. Suter stressed the importance of staying insured properly. For more information about online insurance quotes, visit www.jml-insurance.co.uk.