If you are renting out a property then it is essential that you have the necessary insurance to cover the tenants, the building and any contents. A standard home insurance policy simply won't afford you the necessary coverage and may actually be invalidated if you are found to be renting rooms out. What you need to do is buy landlord insurance.

What is landlord insurance?

Essentially it covers your property for all the usual wear and tear for a building. So this will include the standard features of a home insurance policy, but with a few very distinct differences.

For example, you will often be covered in the event that your tenants should suddenly disappear with their payments in arrears. You might also have an allowance for cutting spare keys and changing locks. Neither of these would be necessary for a standard family home; however, when you are dealing with comparative strangers, having that added security can prove to be invaluable.

You should also have more advanced buildings coverage, even including trace and access cover. This will mean that if there is a problem, it won't just be superficially fixed resulting in a possible recurrence and you won't be charged for labour. The insurance will cover the work required to find the cause of the problem and resolving it.

This kind of added cover is important for a number of reasons. First and foremost it will provide you, as the landlord, with the peace of mind that your property is in safe hands. Should anything go wrong whilst your tenants are living there (whether it has been caused by them or not) you will be fully covered.

Of course it will also mean that you match the legal requirements of a landlord. Remember this cover isn't just for you, it also covers the tenants too. For example, if your house is rendered uninhabitable due to a natural disaster, you could be in breach of contract if you are unable to provide them with alternative accommodation. With landlord insurance, you should be covered for this eventuality and the insurer will work on your behalf to secure somewhere for your tenants to live.

Invariably, with higher levels of cover comes a premium cost. However, this is something that you should be looking to incorporate into your rental price and will have to bear in mind when calculating the viability of being a landlord.

Many insurers will offer you the opportunity to cover multiple properties if you are managing a sizeable portfolio of homes. This will allow you to save a significant amount of money and remove the need to evaluate each one individually or to have unique policies. Again, this isn't something you'd see on a standard home insurance policy.

It is, however, no less important to shop around for your landlord insurance. Different providers will offer their own unique coverage and at varying price levels. Therefore if you are looking to keep costs down you should be looking at who can offer you the best value for your particular property or properties.

You can easily compare insurers by going online and getting a variety of quotes. This way you can really see what you're getting for your money and better judge who you would prefer to handle your landlord insurance policy. Whilst it might not be an option on all price comparison sites, you should be able to visit a number of insurers directly through their websites and obtain a quote.

So if you are a landlord and want to make sure that you are covered for all eventualities, as well as meeting legal requirements, then make sure your property has comprehensive insurance.