Before you even thing about owning your first to-rent property, you should have a good idea of the price you plan to rent it out for. Even if you are a hands-on landlord who likes to speak to the person or people before you rent your property, landlord insurance is vital to protect you from many different angles.
Cover for damage
First and foremost, landlord insurance is a tool that allows you do protect the property itself. Most tenants will not be out to ruin your property, of course, but some can be less careful with it as it does not belong to them.
With landlord insurance, you will be protected for third-party damage, should a tenant cause any to your property, and accidental damage such as a fire or storm.
Peace of mind
Landlord insurance will also allow you to take more of a back seat to running your properties. Particularly if you manage a number of them you do not want to be constantly dropping in on the tenants to make sure everything is in order.
Let insurance do this for you. It is unlikely that you will need to claim on it, but if you do it will be there to use.
Ensure you get your money
You might have an excellent property in an affluent area, with a long line of interested tenants. That is close to guaranteed rental payment, but you never know what might happen.
With some landlord insurance policies you can cover the cost of your rent for situations such as a fire causing the tenants to move out or if they refuse to pay the rent for whatever reason.
Group your properties together
Particularly useful if you own a number of properties is the ability to group them all under the one policy. You will be able to add and remove properties as you please and will also get a better deal the more you have.
Protect your belongings
Just as normal home insurance does, you can protect your belongings in your rental property. Even if you rent an unfurnished property, there are items, such as fire alarms, baths and light fittings that might be expensive to replace if you do not have the necessary cover.