This is an interesting question and worth spending some time answering. As with most things in life, there is no straight answer!
If you have bought a property outright with your own funds with a view to renting it out you are under no legal obligation to insure it or the contents that you own in it for that matter. However, if you took out a buy-to-let mortgage on the property then the lender may have made it a condition of the advance that you arrange suitable landlords insurance.
There is no question that the amount you have paid for the property will be a significant sum of money. In view of that, surely you would wish to protect your investment to make sure that should something untoward happen to it there is adequate insurance cover in place that would pay out to put right any damage to the property or your contents.
Even if you were particularly wealthy and could afford to carry out any repairs caused by the likes of fire or flood by using your savings isn’t it worth just taking out a landlord insurance policy that may only cost a few hundred pounds a year in premiums. If you did not have such cover you could be faced with having to pay a bill running into tens or hundreds of thousands of pounds.
What would happen if one of your tenants was severely injured whilst at the property and you were deemed to be at fault? The monetary claim made against you could be huge depending upon the severity of the injury. Landlord insurance would provide you with public liability cover that would hopefully be of a sum sufficient to meet such a claim.
Surely, in view of what we have said above, it is not worth taking the risk. Why not get a quote today to hopefully see how competitively priced landlord insurance can be.