Buy to let landlords told not to cancel insurance

15 September 2009

Written by Steve Olejnik

Those with buy to let mortgages have been told not to cancel their insurance policies to save money.

Chris Horne, editor of Property Hawk website, suggested that there are other methods of saving money that are not so risky for landlords.

People working in the private rented sector should shop around for the best deals on cover, the expert commented.

Mr Horne also called cancelling insurance "a false economy" because they could find that they are liable for millions of pounds under public liability legislation.

Tenant insurance is something that landlords can consider as a proactive measure, he continued.

These comments followed Direct Line for Business' recent research, which indicated that 30 per cent of landlords are concerned they will not receive rent from their tenants.

Consequently, some nine per cent of these buy to let professionals have cancelled their insurance policies as a way of saving cash, while 16 per cent have changed their payment terms.

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