Landlords urged not to cut back on insurance

Sainsbury's Finance estimates that as house prices have fallen, private landlords have seen the collective value of their properties fall by a staggering £118.4 billion between the first three months of 2008 and the same period for this year. This equates to an estimated £324 million a day. The worst affected area is London, where private landlords have seen the value of their properties fall by an estimated £37.36 billion.

Lucy Hunter, Landlord Insurance Manager, Sainsbury's Finance said: "The environment for landlords has become increasingly difficult. In addition to a fall in the value of their property portfolios, rental yields have also come down because the market is now saturated with new rental properties as many homeowners look to rent their properties rather than sell.

"When faced with these kinds of pressures, 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."

Sainsbury's Finance offers a home insurance policy for landlords, providing comprehensive cover and benefits at competitive premiums. The policy, which is aimed at landlords with a small portfolio of properties, insures against loss of rental income of up to £20,000 and contents cover of up to £40,000. It is also only one of a few home insurance policies for landlords, to offer unlimited buildings cover.

Sainsbury's Finance analysis of market data reveals that there are some 3.19 million privately rented properties in Britain. Just over 19% of properties in London are privately rented, which is the highest percentage for any part of the country.

Sainsbury's Finance home insurance for buy-to-let properties, which offers a simple telephone application process, offers a number of features and benefits including:

Two choices of contents cover - up to £40,000 for furnished properties and £5,000 for those that are unfurnished. High risk items are insured up to £5,000 - this includes TV and audio equipment, pictures and paintings

Unlimited buildings cover
Loss of rent income up to £20,000
Unlike some home insurers, Sainsbury's Bank does not apply charges for customers paying their premiums by direct debit
Maximum no claims discount of up to 40%
No claims discount protection

To find out more about Sainsbury's Home Insurance, visit sainsburysbank.co.uk