Landlord insurance is designed specifically for property owners who rent out their homes. Standard home insurance doesn’t cover the risks that come with having tenants, so if you let a property, you need cover that’s built around that. Here’s a clear breakdown of what landlord insurance typically covers and why each part matters.
Landlord insurance
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What is landlord insurance?
Landlord insurance is a specialist policy for property owners who rent out their properties. It goes beyond standard home insurance to cover the risks that come specifically with letting — things like tenant liability, loss of rental income, and legal disputes.
Buildings insurance
Buildings insurance is the foundation of most landlord policies. It covers the cost of repairing or rebuilding the structure of your property if it’s damaged by events like fire, flood, storm, or vandalism. This includes the walls, roof, and permanent fixtures such as fitted kitchens and bathrooms.
If you have a mortgage on your rental property, your lender will almost certainly require buildings insurance to be in place. You can read more about this on the MoneyHelper buy-to-let guide.
Contents insurance
If you’re letting a furnished property, contents insurance covers the cost of repairing or replacing items that belong to you — furniture, appliances, carpets, and similar. It doesn’t cover your tenants’ belongings. They’d need their own contents insurance for that.
If your property is let unfurnished, contents insurance is less of a priority. Though it can still cover items like white goods if you’ve left any behind.
Liability insurance
Liability insurance covers you if a tenant, visitor, or tradesperson is injured at your property and holds you responsible. If someone slips on a loose stair rail and suffers an injury, for example, you could face a claim for medical costs and legal fees. Landlord liability insurance covers those costs so you’re not paying them out of your own pocket.
Loss of rent
Unexpected events, such as fire or flood, could render your property uninhabitable, leading to a loss of rental income. Loss of rent cover within your landlord insurance policy compensates you for the rental income you would have received during the period when the property is uninhabitable. This ensures that you can continue meeting your financial obligations even when your property isn’t generating income.
Alternative accommodation
If your property becomes uninhabitable due to an insured event, alternative accommodation cover pays for your tenants’ temporary housing. This can be vital in maintaining a good landlord-tenant relationship and avoiding potential legal disputes.
Legal expenses
Disputes with tenants can be costly and time-consuming. Legal expenses cover helps you cover the cost of legal action. Whether it’s to evict a tenant, recover rent arrears, or address any other disputes that may arise. This ensures you’re not left out of pocket in the event of legal proceedings.
Optional add-ons worth considering
On top of the standard cover, most insurers offer optional extras that can be worth adding depending on your situation:
- Accidental damage cover: Protects against unintentional damage caused by tenants, such as a broken window, a stained carpet, or a damaged appliance.
- Rent guarantee insurance: Covers your rental income if a tenant stops paying, typically kicking in after a set period of missed payments.
- Home emergency cover: Gives you access to a tradesperson quickly for urgent issues like a boiler breakdown, plumbing failure, or lost keys.
Does your property need to be occupied?
Standard landlord policies are written on the assumption that the property is tenanted. If your property is vacant — between tenants or during refurbishment — your cover may be limited or void for certain events. It’s worth checking this with your insurer and letting them know if the property is going to be empty for more than 30 days.
If you’re wondering about other costs involved with an empty property, take a look at our guide on do landlords pay council tax when a property is empty.
The bottom line
Landlord insurance protects your property, your rental income, and your finances against the things that standard home insurance simply won’t cover. The right level of cover depends on your property, whether it’s furnished, and how much risk you’re comfortable carrying yourself.
Get a landlord insurance quote from insurd today and make sure your investment is properly protected.
