Renters are in desperate need of income protection - perhaps even more so than those on a mortgage - the managing director of Legal & General Insurance has said.
Mark Holweger said it was key for brokers not to forget the need to insure their customers who are in rental properties.
He cited the example of a mortgage broker who took a client through the forms for a mortgage and related insurance, but when the client decided not to buy after all, the broker ditched the insurance application as well.
"This is short-sighted", Mr Holweger said. "People who are renting still need income protection; they still have families and they still have to protect their earnings.
"Customers need to be protected well against the uncertainties in life - you only need to look at scary statistics around illnesses such as cancer, for example, to realise this."
Mr Holweger also said while a mortgage provider might be able to give a borrower a payment holiday, or to work out a new repayment plan over a course of months should the borrower be unable to pay, landlords would be less likely to come to an agreement with a renter.
Paul Reed, director of Cardiff-based Vita, commented: "As demand for good quality rental properties increases, so does the monthly rental rate."
He pointed to research from Santander in 2015, which suggested that the average rent was £995 compared to an average mortgage of £805.
Mr Reed added: "Not only are we likely to see increasing competition for rental properties but renters are paying more to keep a roof over their head than many homeowners.
"Landlords can afford to be more selective about who they rent their property to - tenants who are financially secure will be top of the list.
"Income protection can not only underpin the individual’s monthly expenditure in the event of an accident, sickness, illness or injury, but could also elevate their chances of securing a rental property by evidencing their greater financial security."
simoney.kyriakou@ft.com
