Axa insurance is advising buy-to-let landlords to check their insurance policies to verify that they are covered if tenants do not pay their rent.
The insurer says that there is no provision in many policies for non-payment of rent and this can leave landlords with a large financial burden if a tenant falls into arrears.
A Buy To Let policy from Axa provides an optional extra that will give up to six months rent to as much as £2,500 if tenants fail to pay during the period of tenancy and remain in a property that is insured. Michael Keating, Axa 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."




