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.

Moneysupermarket.com advises would-be and accidental landlords to ensure that they have a policy which covers rental arrears. 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. New landlords entering into the market should make sure they protect themselves by taking out a special landlords' insurance policy, according to Moneysupermarket.com. Since the economic downturn, more people have turned to renting while they are waiting for house prices to recover.

This could mean that more homeowners are putting themselves at risk by not having the right insurance policy to cover a rented home. Research released by the National Landlords Association claimed that one in three landlords last year had outstanding payments from their tenants.

Ms Owens advised: "Whether you're looking at buy-to-let property for investment, extra income, or because you cannot sell your house, it is essential to have sufficient insurance to cover any financial losses connected with letting out a property. I advise insuring yourself against these circumstances before they arise, it is always better to be prepared and there are a number of suitable insurance policies for landlords on the market. The varying levels of cover available means it's essential to do your research and pick the policy that is the best fit for your circumstances, policy wording can differ so it is vital to check the small print to determine exactly what is covered. It is important to have a good contract in place to know where each party stands should the tenant and landlord relationship fall sour."

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

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