Landlords need to be aware of the need to have buy-to-let insurance in place to protect themselves in the event that their tenants cannot pay their rent.
So claims Charles Haresnape, group mortgage services director for Connells, who writes for Mortgage Strategy that while many property professionals understand the role such commercial insurance plays in providing protection against the likes of fire and subsidence, they also need cover should tenants be unable or unwilling to pay rent.
"With many landlords depending on rental income to meet their mortgage payments, this type of insurance can make the difference between them being able to run a profitable business and finding their property repossessed," he states.
Mr Haresnape adds that newer entrants to the buy-to-let market in particular might not appreciate the value of having commercial insurance in place.
Now could be a good time for landlords to consider their commercial insurance needs as a recent study by the National Landlords Association showed that 47 per cent of possessions during the second quarter of 2010 were due to tenants not paying their rent.
