Homes are valuable assets that deserve maximum possible protection. Sometimes, home owners buy properties to let the property for rent. A tenant approved by the property owner will occupy the property for specific terms as set by the landlord. If you are not living in your home, you have to buy landlord insurance for homes you intend to rent out. Many people don't understand the difference between home insurance and landlord insurance. Buying ordinary home insurance without disclosing that the property is rented out can be devastating because insurance companies may cancel the policy when they come to know that the property is actually rented. Further, essential protection for landlords is not provided by normal insurance.

As you are buying a home only to rent it out, you are essentially starting a property business even though the expected income is very less. Aside from protection for your building, protection for the income is also needed. There is no provision in ordinary home insurance to provide protection for the income you can generate from your home. When your property remains unoccupied, your landlord insurance will pay for your losses. However, this is not applicable when your property is purposefully vacant.

The landlord insurance essentially covers the building you are renting out. This property insurance protects the building in case of natural calamities that cause destruction to the building. Other risks like terrorist attacks, and subsidence are also covered by property insurance. You have to buy this insurance depending on the worth of your home. There is no need for you to buy contents insurance unless you rent a fully furnished property. In any case, contents insurance for landlords will cover only those contents that are owned by you. You don't have to buy insurance for the contents that your tenant own.

The key difference between normal home insurance and buy to let property insurance is the landlord liability. When your property causes any damage to the tenant living in your property, you have to take the legal responsibility. Water and electricity leaks in your property may cause damage to the people living in your home and those expenses will be covered by landlord liability which is not available with ordinary insurance. Should any tenant be affected, the insurance company will pay for the damages caused. Any domestic worker injured because of faults in the property will also be paid by the insurance company.