There are a staggering 4.5 million privately rented households in the UK, according to figures from the Office for National Statistics. And, although tenants’ homes are at risk if they’re unable to pay for their rent due to an accident, illness or death of the main breadwinner, protection remains a rarity among renters.
A study from Aviva has found that the vast majority of renting households do not have any form of protection insurance – life insurance, critical illness cover, or income protection. Unbelievably, just 3% of renting households have critical illness cover or income protection in place.
But why is it important to encourage your tenants to get suitably protected?
Your tenants rely on their income to pay their rent. But what if that income stops suddenly due to an accident or illness? Would they be able to continue paying their rent? This is especially crucial for the nearly 40% of those in privately rented accommodation that have dependent children!
If tenants are unable to pay their rent, this could result in eviction – for landlords, this could ultimately mean empty periods in their rental properties as well as potential agency fees to find new tenants.
What if your tenants had renter’s income protection?
It’s a simple safety net that would give both you and your tenants the peace of mind you deserve.
Many insurance providers like L&G and Aviva now offer a form of income protection that has been designed specifically for renters. It pays out a monthly benefit to those renting if they are unable to work due to illness or accident and can help with rental costs, utility bills, medical costs and other monthly outgoings. By 2023, one in four households in the UK is expected to be living in privately rented accommodation which highlights just how important renters protection is, for both tenants and landlords.
If you would like more information on renter’s protection get in touch to speak to an advisor today.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors