Landlord insurance 'is always worth considering'
21st Jun 2012
People moving into buy to let property investment should always ensure they have appropriate insurance in place, which can offer them peace of mind at the very least, one expert has advised.
Stuart Law, chief executive at investment adviser Assetz, said that insurance to protect against tenant arrears is a necessity that is "well worth considering", particularly for first-time investors.
"I would strongly recommend that people with very small portfolios - particularly those new to the buy to let business or those who haven't got lots of reserves to cover the risk - should consider the insurance," he recommended.
It is a good component of a portfolio, and for a small investor who is new to it, a "pretty good idea", Mr Law said.
As with all insurance, it is possible to self-insure, but for those who are "new to the game" and only have one, two or three properties then it is always a possibility that one or all of the renters may default, so getting insurance is a wise move, the expert noted.
"Many people cut out letting agents and deal with the tenanting themselves, but this is certainly a risky move if you don't carry out substantial tenant referencing," he noted.
Posted by Staff Writer: Frances McDonald
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