Anybody who rents out their property for let, should ideally have landlords insurance. A basic house insurance will not give the landlord sufficient cover. Landlord insurance protects the landlord for damage done for his property and will be compensated in the event of a claim on the landlord insurance.

Like most types of insurance, landlords insurance can be reduced in price if the landlord installs devices such as fire alarms, burglar alarms, external lighting etc. All insurance premiums are based on risk, so the more you can reduce the risk the more likely it is that you will be able to purchase landlord insurance at a lower premium.

One of the main risks any landlord has is damage to his property by the tenants. Should this happen then ordinary household insurance would not cover the landlord. With landlord insurance should any tenants cause any damage the landlord can claim for compensation against the landlord insurance. An addition advantage with landlord insurance is that if there are any legal expenses incurred regarding the damage by the tenants, they can also be claimed back.

Depending on the landlords insurance, some policies also cover repairs to the structure of the building too. However, many landlord insurance policies will not cover damage caused by floods or storms as these are known as Acts of God.

Landlords insurance also gives cover against theft for the property too.

Before buying landlord insurance it is always best to get a few quotes and see which landlord insurance policy gives the best value for money. As with any type of insurance, read carefully all the terms associated with the landlords insurance before payment is made.

To reduce the cost of landlord insurance, if the premium can be paid in full then it will usually be cheaper than paying by instalments. But certainly a standard home insurance will not give any landlord the required cover supplied by any landlord insurance cover.

But remember that with landlord insurance the more you can do to reduce the risk of you having to make a claim the cheaper the landlord insurance premium should be. Plus make sure you insure the property for the correct value. Do not under insure it simply to try and get cheaper landlord insurance