A Beginner’s Guide To Landlord Insurance    

If you let one or more properties, landlord insurance is essential protection. But what is it, how does it work and what types of cover are available? Find out in this useful guide.  

What is landlord insurance? 

Landlord insurance is a type of insurance policy that provides financial compensation against damage to your rental property. Unlike traditional home insurance, landlord insurance can protect you against loss of rental income due to an unexpected event, like a fire, and the cost of building repairs or even legal disputes with your tenants. 

Do I need landlord insurance? 

It is not a legal requirement to have landlord insurance – you can let a property to a tenant without it. However, insurance may be a condition set by your mortgage provider as part of the terms and conditions of your loan.  

Even if this is not the case or you own your property outright, landlord insurance is still a good idea! It offers you financial security and peace of mind – protecting you from costly building work and compensating you for crimes like theft and vandalism.  

Many insurance providers also offer multi-property cover to make protecting your portfolio of assets even easier. 

How much does landlord insurance cost? 

There is no ‘one size fits all’ cost for insurance policies – your premium will be calculated by your provider based on factors such as: 

• the type of property its age and condition 

• the property location 

• the number of tenants 

• security measures at the property 

• the contents that you are insuring 

• the level of excess you choose to purchase. 

What does landlord insurance cover? 

A landlord insurance policy typically includes building cover as standard but may also comprise contents and property liability insurance. It depends on the insurance provider and your own needs and requirements.  

Buildings insurance 

Buildings insurance covers the costs of repairing damage to the structure of your property, including windows and doors, roof and guttering and fitted cupboards, caused by ‘insured events’. The events covered will vary by provider and location but may include:  

• Fire (and smoke damage) 

• Flooding (natural or burst pipes) 

• Storm damage 

• Theft  

• Vandalism 

• Subsidence. 

Contents insurance  

While building insurance is often a mandatory requirement for mortgaged properties, landlord contents insurance is typically optional. Whether you buy contents cover, and how comprehensive the policy is, will depend on what you provide for your tenants.   

If your rental property is fully furnished, you will need a policy that covers the cost of all your supplied furniture and white goods. This premium will be higher than for a landlord with a part-furnished or unfurnished property.  

Many landlords list a property as unfurnished but still provide appliances such as a fridge, washing machine and cooker. You should ensure that your landlord insurance covers any goods owned by you – this will also include other commonly supplied items like curtains and blinds.  

Keep in mind that you are not responsible for insuring your tenant’s belongings. They must purchase separate tenant contents insurance. 

Property-owner’s liability cover 

Property liability cover offers financial and legal cover if a tenant, visitor, tradesperson or other person is accidentally injured at your property. It can also cover damage to another person’s property that has happened because of your property ownership e.g. damage to a neighbour’s house during building works. 

Although this insurance is not mandatory, it is recommended, especially if your property is in an area with high foot traffic where the risk of personal injury is increased. 

What other insurance is available for landlords? 

Here are some common types of insurance cover that can be added on to your landlord insurance, depending on your provider, or as a separate policy: 

Home emergency cover 

Home emergency cover protects your home and tenants against the loss of critical services, such as heating, water supply and electrical failures. The premium typically includes 24-hour assistance at no extra charge.   

While this cover is useful for incidents such as a broken boiler, it won’t cover everyday maintenance costs or wear and tear. 

Accidental damage 

Accidental damage insurance covers one-off, unexpected damage to contents, such as dropping a TV during installation, spilling red wine on the sofa or a ball smashing a window. It is usually bought as an add-on to contents insurance but may also be included as standard, depending on your policy provider.  

Rent guarantee insurance 

Rent guarantee insurance provides financial cover if your tenants are unable to pay their monthly rental payments and fall into rental arrears. It can cover rental income loss as well as any legal expenses incurred during repossession processes. 

• At Landlord & Tenant Protection, our rent guarantee insurance offers an extra layer of financial protection by covering up to £2,500 in missed rental payments, and legal expenses coverage. Our insurance partners match you with the best providers to find the best level of coverage for you.  

Loss of rent cover 

Loss of rent cover provides essential cover for lost rental payments if your property becomes unfit for tenants to live in due to significant property damage. Loss of rent cover can also help to pay for the accommodation costs of your tenants during repairs. 

Employers’ liability cover 

If you hire employees to maintain your property, such as a property manager, cleaner or gardener, you must purchase employer liability insurance. By law, you must have at least £5 million cover from an authorised insurer.  

This insurance protects you if your employees become sick, injured or pass away due to negligence.  

Legal expenses cover 

Legal expenses coverage is most often bought as an add-on to a main landlord insurance policy but is sometimes included as standard, depending on your provider. It provides financial protection against legal costs related to resolving issues related to property damage, tenancy disputes and repossession of your property.  

Unoccupied property cover 

If you have a period where your property is not occupied by tenants or yourself, you should purchase unoccupied property cover.  

Unoccupied properties have unique risks. For example, vandalism may be more likely, there is a risk of squatters moving in and utilities can require extra maintenance or repairs due to lack of use.  

Bespoke services for landlords  

At Landlord & Tenant Protection, we offer a range of services to help make your lettings journey simple and improve your relationships with your letting agents and tenants: 

• Our unique portal and tenant reference rating system will help you find trustworthy tenants 

• Our online forms and document upload function for prospective tenants make the application process quick and easy 

• Access tools to help make your job as a landlord easier, from issuing contracts online to enabling notifications for gas safety checks 

• Protect your income with rent guarantee insurance through our trusted partners. 

Learn more about how our services give landlords like you ultimate peace of mind.