A suitable insurance policy should be a key priority for every landlord. Your property is a major asset that needs to be protected, and you cannot do this without specialised insurance. Similarly, landlords open themselves up to other unique risks, including tenant default, against which you need to be covered.

Why can’t I use my regular home insurance?

The vast majority of conventional home insurance policies will not cover you if you take on tenants. Properties should not be let without written permission from an insurer, and most regular home insurers will refuse to do this.

Furthermore, specialised landlord policies provide you with protection that you would not otherwise be able to secure. It is only with a landlord insurance policy that you would be able, for example, to protect yourself against compensation claims arising from injury or death.

What does residential property insurance protect me against?

There is a range of residential property insurance covers to choose from:

Buildings insurance
The most important of these is buildings insurance. This covers damage to your property from major risks such as fire and flood, as well as general wear and tear to the buildings infrastructure, such as the roof. This is essential for any properties you own as the cost of repair in these scenarios would be considerable. It also often comes paired with accidental damage cover as standard which can be particularly useful when you have a stream of different tenants in your property.

Tenant default cover
In order to protect your finances it’s advisable to take out tenant default cover, which protects against non-payment of rent or loss of rent insurance. The cover also pays out in the event that the property becomes uninhabitable because of a disaster.

Contents insurance
If the property you’re offering is furnished you should consider contents insurance. If you rent your properties unfurnished, the responsibility of contents insurance will fall to your tenants.

Landlord liability insurance
Many landlords also choose to invest in landlord liability insurance, which protects against compensation claims made as a result of injury, death, or damage to property arising from a fault in the property.

Your policy can be made up of one or all of these components depending on your requirements.

How do I find residential property insurance?

The internet has made the purchase of residential property insurance much easier. Online brokers and search sites compare a number of quotes quickly and easily, enabling you to find the right cover at the right price.

There are a few simple steps to securing the right residential property insurance.

1. Decide what covers you need

First, consider what sort of protection you are likely to need. This article should help you decide, but if you are in any doubt you could speak to a broker or insurer directly.

2. Gather information

Insurers will need you to answer a series of questions before they can provide a quote. In order to make the process as quick as possible, try to gather some key information before you begin. You will need to know, for example, the materials from which the property is built, its postcode, and the approximate time of its construction.

3. Compare quotes

Shopping around is the only way you can be sure that you are getting the best deals. It is important that you compare quotes not just for price, but also for the breadth of cover they offer. Remember that being underinsured can be just as bad as being uninsured.

4. Keep your insurer informed

Finally, once you have made a purchase you must remember to keep your insurer informed of any changes to your circumstances. Failure to notify your insurer of key changes could render your policy void.

Startups.co.uk has partnered with Simply Business so that you can compare insurance policies and buy the right cover for your business here.