Landlord insurance ensures you are covered for the risks you may face when letting or leasing your property; this is also known as buy to let insurance. This covers you and your property for damage to the buildings or and contents against a range of unforeseen events, from floods and fire to storm damage. Optionally, you can also choose coverage for areas like accidental damage, loss of income and legal expenses.
Why Landlord Insurance Matters for Property Owners
Landlord insurance is essential for protecting your rental property investment. Unlike standard homeowner’s insurance, landlord insurance covers unique risks associated with renting out a property, including tenant-related damages, loss of rental income due to unexpected events, and liability coverage if someone is injured on the property. Having the right insurance can save you significant financial stress and provide peace of mind in the face of accidents or unexpected property repairs.
What does Landlord Insurance include?
When taking out a landlord insurance policy, it is important to consider your business needs and circumstances. Every policy is bespoke; however, common areas that landlord insurance covers include:
Landlord's insurance cover can include:
- Buildings and landlords contents insurance
- Loss of rent
- Landlords legal liability insurance
- Cover for furnished and unfurnished properties
- Single properties or multiple property portfolios
- Tenant default insurance
- Landlords home emergency cover
- Landlords boiler breakdown cover
- Unoccupied property cover
- Alternative accommodation cover
Landlord Building Insurance
Landlord building insurance typically covers:
- Walls
- Roof
- Floors
- Extensions
- Kitchens
- Bathrooms
- Permanent fixtures and fittings
Coverage Options for Landlords: What You Need to Know
Landlord insurance typically includes a few key coverage types that are tailored to meet the specific needs of rental property owners. Here are some of the most common coverages available:
- Property Damage: This coverage protects against damage to the structure of your property from incidents like fire, natural disasters, or vandalism.
- Liability Insurance: Liability coverage is essential if a tenant or visitor sustains an injury on your property and seeks compensation for medical bills or damages.
- Loss of Rental Income: If your property becomes uninhabitable due to a covered event, this option helps cover the loss of rental income during repairs.
Including these types of insurance can ensure that both you and your property are safeguarded from unexpected expenses.
Landlord Contents Insurance
Contents insurance covers your property for areas such as flooring, furniture and curtains; however, it does not cover your tenant’s property and this can be covered by the tenant separately under tenants' contents insurance.
Rental Income Protection
Rental income protection, also known as rent guarantee insurance, ensures that you receive your agreed rent should your tenant not be able to live in your property.
Unoccupied Properties
You may find your property vacant from time to time, whether this is in periods of refurbishment or in-between tenants, our brokers can offer bespoke insurance quotes for unoccupied property insurance.
Landlord Liability Cover
Landlord insurance should also offer liability cover. The first type is property owner’s liability; this is used to cover any damage or injury caused while on your property. If you employ anyone at your property, such as receptionists or cleaners, you will also need employer's liability insurance.
Why choose specialist Landlord Insurance?
A landlord's insurance requirements are very specialised. Whether you have just a single rented property or you have invested in an extensive portfolio of rental properties, as a property landlord, you need to know that your landlord insurance needs are being handled by a broker who specialises in property landlord insurance.
Standard home insurance policies won’t offer the appropriate protection for landlords should something unforeseen go wrong, accidental or deliberate. Even worse, your standard home insurance may even be invalidated and cancelled if you let your property out to tenants and you need to make a claim.
Buy to Let Insurance
Insurance for letting your own home or insuring buy-to-let property has become easier as more insurance companies have picked up on the boom in this type of property investment. Despite the credit crunch, the willingness by many banks and building societies to lend money to would-be property landlords have fuelled the trend.
If you are a first-time novice landlord and looking for buy to let insurance, perhaps you are letting out your own home, you might assume that you only need the standard buildings and contents insurance cover provided by many High Street and Internet insurance companies. This is not the case – your buy to let property represents a business as well as an investment and needs to be insured accordingly.
How can we help?
Fortunately, QuoteRack works closely with insurance brokers who can offer you access to specialised schemes offered by niche insurance companies looking to provide Landlord Insurance.
If you are a landlord and you are looking for insurance, QuoteRack's specialist insurance brokers will help you - just hit the 'Get a Quote' link to complete your details online.
Landlord insurance - resources
In addition to securing the right insurance, landlords can benefit from engaging with trusted organisations such as the British Landlord Association (BLA). The BLA offers a wealth of resources, from updates on legal responsibilities and tenant management advice to essential news affecting the rental market. For landlords, particularly those navigating non-standard tenancies or expanding their property portfolios, the BLA provides valuable guidance and practical insights to support informed decision-making. Staying connected with the BLA enhances your approach to property management, making the landlord experience more streamlined and effective.
Assured Shorthold Tenancies
With due acknowledgement to the the Department for Communities and Local Government, you can download their excellent Assured Shorthold Tenancies - a guide for landlords here, as well as their Guide to Regulated Tenancies.
Benefits of Landlord Insurance
- Financial Security: Protects against unexpected repair costs and liability claims, safeguarding your finances.
- Compliance: Some mortgage lenders require landlord insurance if the property is rented out, so having a policy could be essential for securing financing.
- Peace of Mind: With coverage for both the physical structure and your liability as a landlord, you gain confidence that your investment is secure.
Landlord Insurance FAQs
Uncertain about landlord insurance, and still have niggling questions? We’ve got you covered!
We’ve gathered some of the most common FAQ’s and the answers you need.
Landlord insurance is designed to protect you from risks that occur when renting out your property.
There are multiple forms of cover for landlords, from building insurance to property owners’ liability insurance.
The cover you need will depend on the type and quantities of property you own.
A single occupancy house has different requirements insurance wise to a block of flats or commercial property.
Your broker will discuss your portfolio with you and make recommendations based on this information.
Building insurance will cover you for damage to the structure. If you are renting out a furnished property, you’re going to want contents insurance as well.
There are multiple types of insurance that your broker will discuss with you. They all have important benefits.
Tenant default insurance will cover you if tenants cannot make rent.
Landlord legal expenses insurance, buy-to-lent insurance, and rent guarantee insurance are all coverage options.
No, but mortgage lenders are likely to want it.
If you’re lucky enough to own your property outright with no mortgage, it is sensible to ensure you have coverage for a rainy day.
A standard home insurance policy is built to cover a property you are living in and won’t cover you for the risks associated with renting your property out.
It is also unlikely to cover you even if you are living on the property and renting part of it out – you’re going to need specialist landlord insurance in this case.
If you have property you’re renting or planning to rent out, it’s a good idea to have some form of coverage.
Wear and tear on contents, damage to the structure, and even a visiting tradesman tripping on the path are all things insurance can cover for your peace of mind.
Your insurance costs will depend on several factors.
Everything from the age, type and conditions of your properties, to the type of tenants you are renting to, and even the number of properties in your portfolio will be considered by your broker, as well as the type of coverage you choose.
Insurance is meant to cover extreme situations.
If the worst happens, you want enough building insurance to cover the cost of rebuilding your property including labour and materials. This often called “Building Sum Insured,” and can be referred to as such on your mortgage or valuation paperwork.
Contents insurance should cover the cost replacing everything like your furniture. It’s important to note that contents insurance does not always cover fixtures and fittings – if this is something you are looking for, you may need a separate fixtures and fittings policy.
This will depend on the individual policy you use. Some policies give you the option to arrange cover ahead of the start date, so if you are switching providers, you can arrange this to avoid overlap or uncovered dates.
Insurance policies usually cannot be backdated.
Yes, even if you’re renting to family, a standard landlord insurance policy is recommended. Renting out property changes your insurance needs, and a typical homeowner’s policy may not cover damages or liability related to tenants, even if they are family.