Since regular household insurance does not cover property bought to let out,it is landlords insurance or buy-to-let insurance that comes to your rescue.This is specially designed to safeguard your property that has been rented out.

As a landlord, there is a greater risk level involved when you rent out property than the one used to staying in. A tenant's claim for a trip, fall or slip in the room may turn out to be a mammoth bill that you may have to foot.

Not all insurers give you landlord's insurance, so you may have to specially look for an insurance company that provides one. It is always advisable to thorough enquiries about insurance even before you purchase the property you want to let out. Getting a structural, local survey and a valuation done on the property can get you insurance with reasonable premiums. Otherwise you will end up paying hefty premiums which will ultimately have to be paid from your own pocket, thus affecting your returns.

Remember to insure your property for its reinstatement value and not at your purchase price.Landlords insurance could be for residential or commercial property that you may want to let.Most policies for this purpose provide cover to cater for both the landlords insurance needs and those of the tenants as well.