Most people have heard of mortgage payment protection insurance but few know they can get insurance to protect their rental fees, says AntInsurance.
The short-term income protection insurance provider, which offers income protection for expenses such as a mortgage, car loan or school fees, says tenants face higher rents due to the wave of Eastern European immigration and yet another interest rate rise.
John Needham, director at AntInsurance, says: "If circumstance means you cannot keep up payments, then you are at risk of losing your home – the prospect of having to move out would fill many people with horror. Short-term income protection will replace your net income, often up to 75%, if you are unable to work due to accident, sickness or unemployment. The beauty of this product is that payment is made directly to you each month and can be used to cover any financial outgoing, including the rent and everyday bills. As more people turn to rented accommodation, the need to make tenants aware of how to protect their income and home becomes more pressing. There is no substitute for a good level of saving as a financial safety net, but given that few people have this, short-term income protection is an affordable option. If finances are really stretched, you should consider taking income protection for shorter benefit periods of three or six months. Most people, 63%, find work within three to six months so this may well be all the protection you require and some protection is better than none."
Income protection: News update: July 2007