Landlords urged to keep home insurance

Although money is tight in the current economic climate, Sainsburys Finance has warned that cutting back on home insurance for landlords is a false economy.

Research by the firm shows that the value of landlords' properties has fallen by a collective £118.4 billion between the first quarter of 2008 and the same time this year and rental yields have also been reduced because of the recession.

But cutting home insurance is not the answer, according to Sainsburys, which currently offers cover for landlords, protecting against the loss of rental income up to £20,000 and contents damage with a limit of £40,000.

Lucy Hunter, landlord insurance manager for Sainsbury's Finance, said: It can be tempting to look at ways to cut costs. We are urging landlords not to cut back on buildings and contents insurance as doing so could prove false economy. Your property is a huge asset so it's imperative it is properly protected.

Home insurance provider Direct Line recently conducted research which showed that 800,000 households in the UK have experienced theft while the property was unoccupied.