The general insurance platform provider has reported a 57% increase in uptake of rent protection as an optional extra alongside its popular Landlord’s Insurance product and reveals that purchases of the add-on product consistently increased month-on-month.
Louise Pengelly, proposition director at Paymentshield, explains the rapid rise in demand: “Given the current cost-of-living crisis, it’s no surprise that more and more people are struggling to pay the rent, which creates a knock-on effect across the entire economy with landlords, in turn, feeling the fear.
“Many ‘accidental landlords’, who perhaps inherited a property or were left with an empty property after moving in with a partner, are now relying heavily on that rental income, where once it may have just been seen as a means of topping up their earnings.”
“Indeed, landlords at this end of the market, far from being institutions with automated processes and built-in loss mitigation, are anxious to protect the money they have coming in and avoid mortgage arrears or worse.”
Louise concludes: “It’s clear from the reporting across the industry that the growth in number of landlords making claims is expected to reflect the growth in demand for cover.
“With that in mind, it’s absolutely worth advisers discussing optional extras with their landlord clients. Rent protection can provide peace of mind in what, unfortunately, could be an increasingly likely reality for some landlords.”
