Home contents insurance 'vital' for landlords
Although money is tight in the current economic climate, Sainsbury's Finance has warned that cutting back on home insurance for landlords is a "false economy".
Calls have been made for landlords to make sure they do not cut back on home contents insurance due to financial pressures brought on by the recession.Sainsbury's Finance has said that, while the value of their houses may have collectively dropped £118.4 billion in value between the first quarter of 2008 and the same time this year, home contents insurance should not be neglected to save money.
London landlords have been hit the hardest, bearing £37.36 billion of the total fall in property value, and some will also have been affected by reduced rental yields across the UK due to the economic climate.
But cutting back on home contents insurance is a false economy, according to the firm, as the long-term costs could be greater if landlords have to pay out for loss or damage of their property's contents.
Lucy Hunter, landlord insurance manager for Sainsbury's Finance, said: "When faced with these kinds of pressures, it can be tempting to look at ways to cut costs. We are urging landlords not to cut back on buildings and contents insurance as doing so could prove false economy. Your property is a huge asset so it's imperative it is properly protected."
The firm offers a home contents insurance policy designed specifically for landlords, providing protection against loss of rental income up to £20,000 and cover for any items in the property with a limit of £40,000.
Property owners looking to pick up a discount by purchasing home contents insurance with buildings cover from the same company were recently urged to take a look at the whole of the market.
Home contents insurance provider the AA said that although many discounts are available for combined cover, households can take advantage of cheaper deals by buying their buildings and contents protection separately.
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