THE cost-of-living crisis is having profound and far-reaching impacts on practically every section of our society. No-one is immune from the record levels of inflation, sky-rocketing energy prices and the increase in interest rates.
And for landlords servicing mortgages through rental incomes, the rise in interest rates is, often understandably, leading many to pass these price rises on to their tenants.
This in turn is causing hardship for some renters, and with further interest rate hikes expected, many are looking for ways of reducing their bills.
A survey by real estate company, Zoopla has revealed there is now a growing trend for renters to favour smaller properties as they may be easier to afford and cheaper to heat.
The trend has the potential for some upheaval with renters moving out of their larger properties and into smaller ones leaving landlords with the hassle of seeking new tenants.
In the rental market, the average rent in Belfast is £803, up from £618 six years ago.
Across in Scotland the government has announced a rent freeze and a suspension on evictions for the next six months.
It all paints a picture of turbulence in the housing sector and with further headwinds expected it may be a good time for landlords to review their insurance policies.
Policies which provided the right cover when taken out last year may not stand up to the same scrutiny when measured against the current conditions.
Whether you own one property or an entire portfolio, effective landlord insurance is an absolute must. From nightmare tenants to missed payments, landlords are at risk from a whole host of unpredictable factors, even before they have to consider the current economic climate.
The best insurance brokers can tailor-make policies which tackle specific problems, meaning you are not paying for cover you don’t need.
A good robust landlord policy can provide buildings cover, equipment breakdown such as ventilation/air conditioning units, accidental damage and landlord’s contents including those contained within communal areas.
Importantly, in these challenging times, landlord insurance can also provide cover for loss of rent following an insured event.
Owning property means that you face the risk of incurring liabilities through your operations, therefore suitable Property Owners liability insurance will help protect you against claims made across a variety of scenarios.
In addition, you may want to boost your cover to include legal cover.
A Legal Expenses policy covers you for legal advice and gives you access to dedicated helplines if needed plus it covers you for any legal costs incurred in circumstances such as contract disputes, employment disputes, tax investigations and more.
:: Jacqueline McGivern is key account manager at AbbeyAutoline (visit www.abbeyautoline.co.uk or call 08000665544)
