July 23, 2010 | Author

Author Julie Hanson

New landlords who are waiting out the property market by renting out their homes should make sure they have the appropriate insurance.

This is according to one comparison site, which notes that landlord insurance can be bought for under £100 from Simple insurance.

Moneysupermarket.com warns landlords coming into the private rented sector for the first time that they must first ensure they are protected against arrears.

The rise in new landlords is attributed to growing tenant demand, landlords planning to expand their portfolios and increased availability of buy-to-let financing in the market.

In addition, including cover for other contingencies can also save more trouble in the long-term.

Julie Owens, head of insurance at the site, said: “Landlord insurance which includes Rent Guarantee cover or legal expenses can be more expensive, however if things go wrong between a landlord and tenant legal proceedings can involve a hefty cost.

“It is important to have a good contract in place to know where each party stands should the tenant and landlord relationship fall sour.”

Posted by Luella Ravelin

Get a cheap buy-to-let property insurance quote today from Simple Landlords Insurance.