Under many policies there is no cover for tenants failing to pay their rent leaving the landlord with the financial burden if their tenant falls into arrears. The knock on effect of this can be catastrophic for the owner.
The AXA Buy To Let policy has an optional extra that will provide up to six months rent if the tenant fails to pay it during the tenancy period and they remain in the insured property. The additional premium is just £22 per month and covers up to £2,500 per month.
In addition, the policy will provide legal expenses up to £50,000 (including access to a 24 hour legal helpline) incurred in regaining possession of the insured property should action be required following a tenant's breach of their agreement.
Michael Keating, AXA's General Manager of Personal Lines Intermediary said: "While this is clearly not going to help all landlords who might be struggling, having the right cover in place might just ultimately save an unwanted repossession for some. And in the current market it would, if nothing else, certainly provide some much needed peace of mind.
"We would strongly advise all buy-to-let landlords to check out the small print of their policies and make sure they have the cover they might need."
