Insurance a wise way of covering rent shortcomings, expert advises

25 2007
With growing numbers of young professionals renting property rather than struggling to buy their own house or flat, experts have once again highlighted the importance of having an insurance policy in place to cover any potential shortcomings in income.

Various factors have led to the continued boom in the rental market, including the recent economic uncertainty seen across the world, an increase in immigration from Eastern Europe and people relocating for work.

While students have loans to fall back on, young professionals trying to establish their careers in a new city can often find themselves regularly switching jobs and even being unemployed for some length of time.

Figures published by Ant Insurance show that 63 per cent of young professionals find a desirable job within three to six months of leaving their previous employment, meaning that they could benefit from an insurance policy which covers their rent when they are out of work.

The company's director, John Needham, said: "Few people realise that they can get insurance to protect their rental fees. Short-term income protection will replace up to 75 per cent of a person's net income if they are unable to work due to accident, sickness or unemployment.

"The beauty of this product is that payment is made directly to the policyholder each month and can be used to cover any financial outgoing, including the rent or mortgage, and everyday bills."

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