ACCORDING to the debt charity Consumer Credit Counseling Service, enquiries from people living in rented accommodation has gone up a massive 55% in 2011 – making renters insurance all the more vital in case of a disaster or claim.
The economic downturn and rising rents are blamed on this dramatic increase and dramatically bring in to focus the need for tenants to have good insurance in place in case of disaster. When in a difficult position already, anything from an accidental breakage or theft can be financially ruining and that is where good insurance will protect you.
The study shows that renters with private landlords were in the very worst position owing £924 in unpaid rent; this compared to £705 for housing association and £622 for local authority tenants.
The full effect of the downturn (AKA recession) is biting hard, and with unemployment rising to 2.67million there is no good news on the horizon. Perhaps what is the most worrying aspect of this report is the fact that clients wait more than a year before seeking advice on dealing with their debts, which only serves to compound their problems and often drive them deeper into debt.
Whilst we can argue whether the Government are doing enough to reverse the unemployment trend, we cannot dispute the services and support available from the Government, local authorities and charities to help those in suffering hardship and that are in arrears – this makes it all the more baffling why people wait so long to access them?
Landlords as well will be struggling because any periods of missed rent can impact on their ability to pay their mortgages and debts. Any disaster to befall them could be financially crippling and they need landlords insurance in place.
The only thing that is for sure is that tenants and landlords can take care of their own insurance and it does not need to cost a lot of money – typically policies for landlords are around £150 for 12 months so it is not expensive against the context of the property value in most cases.
Renters insurance is easy to buy and can be a very good purchase against any future financial problems or disaster. Try The Property Insurer today for a quick and cost effective policy solution.
The Property Insurer