Leading life assurance company, Royal London, is urging long-term renters in Westmeath to consider the implications of the breadwinner becoming ill or passing away and leaving their family unable to maintain rental payments, if they do not have adequate protection in place.
This follows a Daft.ie Rental Report from earlier this year showing 700,000 Irish people live in leased houses and apartments. The experts say that the financial predicament for families in long-term rental accommodation is very similar to those who live in a home with a mortgage; if one of the parents were to die or become very ill, particularly the main earner, the family would need funds to provide a roof over their heads indefinitely.
However, if a family took out a policy to provide financial protection it could secure their financial future and possibly enable them to afford the ongoing rent for many years. Michelle Murphy of Royal London, Westmeath, says: “Recent reports say that the Government predicts that given likely population trends Ireland needs 80,000 new homes to be built in the 2014-2018 period.
"According to the latest figures from the Department of Environment, Community and Local Government less than half of the new homes that the State needs will be built between now and 2018. So the move by the Central Bank earlier this year to curb property prices by restricting mortgage lending will only exacerbate the situation for first-time buyers and thousands of reluctant long-term tenants.
"In addition, because of population trends, Ireland’s baby boomers are now in their 30s further boosting the number of families that are long-term renters. These families are hugely exposed financially with home ownership down from a rate of 74.7 per cent in 2006 to 69.7 per cent. All of these factors coming together could see the numbers of households and families in long-term rental accommodation exceeding half a million in the near future.
"While there is no dedicated ‘rent protection’ insurance product on the market per se, those who are renting long-term should consider putting 'life' and 'specified serious illness' cover in place to ensure their rent and other ongoing expenses will continue to be paid for their family should anything happen to them.”
