As many as a third of landlords could lose out each year if they don't have adequate landlord insurance to cover against non-payment of rent.
That figure comes from moneysupermarket.com which said 1 in 3 landlords had at least one tenant who had gone into arrears. It noted that specialist landlord insurance can not only protect against unpaid rent, but also the costs involved in collecting this debt or even evicting a tenant.
The site also warned that homeowners renting out their property as a temporary measure were at particular risk of being uninsured. That's becoming more common as owners delay selling until the local housing market recovers. The company explained that standard home insurance policies are invalidated as soon as the property is used to make a profit, for example through rental income.
Landlord insurance can be bought for less than £100 a year, though this only covers lost rent. Policies including related costs such as eviction start at around £134.
In many cases the insurer will require a credit check on the prospective tenants and may insist they reach a specified level on the checking agencies ratings system.
