Though many people mistakenly make the assumption that a landlord can be protected by standard home insurance, this is completely wrong. Landlords insurance is absolutely necessary.
Very rarely will a standard home insurance policy cover the property, owned by the landlord. Such a policy also won't cover the contents, again owned by the landlord, so, for example, any furnishings that might have been there when the tenant moved in, or the landlord's liability. Landlords insurance seems a whole lot more important now, doesn't it?
But what does the typical landlords insurance policy cover?
Recognising that natural disasters and accidents can, quite often, strike with little or no forewarning, most landlords insurance policies cover against damage caused in a number of circumstances. Flooding, a common problem in the United Kingdom, fires and explosions are just some of the things that the majority of tailored insurance policies for landlords will cover.
Additionally, landlords can also ensure that their contents are protected against the same accidents and disasters. This is great as many landlords spend a significant amount of money ensuring that their properties look as homely as possible for prospective tenants. In order to do this they'll buy new furniture, install new kitchens, and bathrooms and so on. With a landlords insurance policy that covers their contents, as well as the property itself, landlords can rest a little easier.
Regardless of how vigorous they are in checking the credentials of prospective tenants, there's no definitive way for a landlord to determine whether they're actually going to be a good tenant or not. Obviously no landlord in their right mind wants to have the tenant from hell, i.e. one that doesn't pay their rent, one that causes damage to the property etc.
This is another reason why landlords should consider getting landlord insurance. At least with the right policy they can ensure that the damage done to their property is covered. Many landlords insurance policies of this type also cover the loss of rent, caused by tenants not paying or refusing to pay their rent.
Although having purchased a property to rent out your first priority is likely to be getting it occupied, you certainly shouldn't overlook the importance of having a good landlords insurance policy in place.
If you're a landlord, or a prospective landlord, you should carry out some research in order to find out more about these landlords insurance policies and what they cover, as each one will differ slightly depending on the company offering it. This will enable you to ensure that your property is appropriately covered and that you, as a landlord, are protected by the time you've found someone willing to move in.
Landlords insurance price comparison sites can also be found online and used by individuals looking for the best possible price.