Specialist general insurance provider, Assurant Intermediary, is urging intermediaries not to ignore the residential rental market as a potential source of business.
It points out that while accident, sickness and unemployment cover for homeowners is usually marketed as mortgage payment protection insurance, there are policies out there that also cover rental payments as well as mortgage repayments.
And while the rental market has remained buoyant over recent months it is not getting any easier for borrowers to obtain a mortgage.
Kevin Paterson, sales and marketing director for Assurant Intermediary, says: “With cabinet ministers ordered to plan for swingeing cuts to day-to-day departmental budgets of up to 40%, there is a huge question mark over thousands of jobs in the public sector. This is bound to have a knock-on effect on the hundreds of private companies that provide services and products to government departments. I wonder how many people are going to be dissuaded from buying a home given the prevailing uncertainty on job security. It looks as though we’ll be seeing a period of sustained growth in the residential rental sector, which represents a potential source of income for intermediaries.”
He adds: “It doesn’t matter whether you’re buying or renting, most people want to be sure they can keep the roof over their heads when times get tough. Intermediaries should be tapping into this market which presents opportunities not only for protection products but also contents cover and add-ons depending on the individual circumstances of the client.”