8:01 AM, 24th November 2022, About A week ago
Over the last six months there has been a 57% increase in the uptake of rent protection as an optional extra alongside standard landlord’s insurance, one provider reveals.
General insurance platform provider Paymentshield revealed its data from the last two quarters and, to underline the startling increase, it says that in those months, the number of landlords buying the add-on product consistently increased.
The firm says that this continuous acceleration demonstrates a growing unease in the lettings sector – particularly among private landlords that own smaller portfolios of properties – and it is these landlords who are the most enthusiastic buyers of the platform’s products.
Louise Pengelly, the proposition director at Paymentshield, said: “Given the current cost-of-living crisis, it’s no surprise that more and more people are struggling to pay the rent, which creates a knock-on effect across the entire economy with landlords, in turn, feeling the fear.
“Many ‘accidental landlords’ who, perhaps, inherited a property or were left with an empty property after moving in with a partner, are now relying heavily on that rental income, where once it may have just been seen as a means of topping up their earnings.”
She added: “Indeed, landlords at this end of the market, far from being institutions with automated processes and built-in loss mitigation, are anxious to protect the money they have coming in and avoid mortgage arrears or worse.”
Paymentshield’s rent protection optional extra, which is offered alongside its Landlord’s Insurance, is designed to cover the policyholder for six months of rent arrears.
It also covers the cost of mediation to encourage and facilitate landlords and tenants to arrive at a mutually favourable outcome in times of financial difficulties – such as implementing a payment plan to help avoid the worst-case scenario of an eviction.
Louise said: “It’s clear from the reporting across the industry that the growth in the number of landlords making claims is expected to reflect the growth in demand for cover.
“With that in mind, it’s absolutely worth advisers discussing optional extras with their landlord clients.
“Rent protection can provide peace of mind in what, unfortunately, could be an increasingly likely reality for some landlords.”
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