Landlords 'at risk of insurance hikes' - buy to let mortgages

15 January 2009

"Unrealistic" insurance prices are putting social landlords at risk of price hikes in the future, it has been claimed.

Zurich Municipal has stated that it feels a sustained period of competitive pricing among insurance firms may leave those in the social housing sector exposed to future "significant" rises in their premiums.

The company argued that the insurance industry has a responsibility to maintain realistic prices that will cover the protection given to clients over matters such as floods, damage to property and liability claims.

Tom Shewry, the head of housing at Zurich Municipal, commented: "Insurers must price adequately now, rather than focus on beating the lowest market rate."

Meanwhile, those with buy to let mortgages have been warned that failing to take out protection insurance is a "gamble".

Michael Portman, the managing director of Let Insurance Services, said that the credit crunch means that not all tenants can pay their rent, highlighting the need for rent protection cover.