A simple guide to landlord insurance: what it covers, and what it doesn’t

The right landlord insurance policies can protect you from many risks that come with letting out a property. However, it’s important to understand the exclusions that could affect you if you live in the property or need to make a claim.

What is landlord insurance?

Landlord insurance exists to protect property owners from claims for damage or destruction, or personal injury and loss of income. 

Given the wide scope of cover, there’s no one overarching type of landlord insurance. Not only are there myriad policies, covering everything from fire and flood damage to personal injury claims, but each insurer sets its own terms and conditions, exclusions and limits. 

What does landlord insurance cover?

Depending on the type of policy you choose, landlord insurance can protect against a range of costly issues in both residential and commercial lettings. A good policy should provide clear answers to common questions about potential risks, such as:

Does landlord insurance cover buildings?

• Landlord buildings insurance protects the structure of your property, including fittings, such as windows, fitted kitchens and bathrooms, and external fixtures, including gates, patios, fences and hedges

• This type of policy covers events such as flooding, fire and subsidence  

• This is usually required by mortgage providers

Does landlord insurance cover contents?

• Landlord contents insurance covers any items that you keep at your rental property for the use, enjoyment and convenience of your tenants in part- or fully-furnished lets

• Policies typically cover all furniture and furnishings against damage or theft – for example, the contents of kitchen drawers and cabinets, locks and carpets 

• Landlord contents insurance doesn’t cover tenants’ belongings

Does landlord insurance cover accidental damage?

• Accidental damage insurance is widely available as a standalone or add-on policy

• It protects against unintentional damage, such as spills on carpets or upholstery, taps left running, smashed windows and cracked sinks 

Does landlord insurance cover malicious damage?

• Malicious damage insurance is the flipside of accidental damage, because there is intent to cause loss. Whether it features as standard on buildings insurance or as a bolt-on policy, it provides cover for deliberate damage by tenants or employees in the case of commercial lets

• Standard buildings and contents insurance typically covers vandalism and burglary

Does landlord insurance cover loss of rent?

• Rent guarantee insurance covers losses resulting from non-payment of rent, usually for a period of six to 15 months

• Legal expenses protection is typically included to cover debt recovery or eviction costs

Does landlord insurance cover tenant injury?

• Landlord liability insurance is there to cover property damage or injuries to tenants, guests and other third parties that you can be held responsible for in negligence claims

• Also known as property owner liability insurance, this type of policy covers accidents that arise due to maintenance issues, such as loose paving slabs or worn carpets 

Does landlord insurance cover boiler breakdown?

• Home emergency cover protects you against utility-related incidents, such as boiler breakdowns, burst pipes, severed cables, and other plumbing, heating, or electrical issues within the property

• Different levels of cover are usually on offer for this type of protection, which is available as an optional extra or a standalone policy

Does landlord insurance cover empty properties?

• Between-tenant vacancy insurance covers periods longer than the typical limits of 30, 45 or 60 days when no one is occupying the property

• Potential reasons why a property may be empty include allowing for renovation or repairs, a longer-than-usual wait for new tenants to take up residence, or tenants going on an extended holiday 

What doesn’t landlord insurance cover?

Landlord insurance doesn’t cover everything as standard, and policy cover limits differ between providers. This is why it’s important to be aware of exclusions and payment limits, as well as standard clauses on what can invalidate your cover.

Here are some things to be aware of:

• Unoccupied periods – Buildings insurance policies limit how long a property can remain insured while unoccupied. Typically this is 30, 45 or 60 days, after which the building is no longer insured and insurers will reject claims made on the policy

• Contents – Tenants are responsible for their own contents insurance, unless the landlord pays an extra premium to provide this additional level of cover

• Pest infestation – Standard policies don’t typically cover pest infestation, such as wasp nests, rats or bedbugs. Some home emergency policies cover this problem, as do specialist pest policies for factories, abattoirs and other commercial properties. Note: tenants are responsible for maintaining acceptable levels of hygiene within the property; however, landlords are responsible for the exterior and any points of entry

• Pets – Standard policies don’t cover damage that a tenant or visitor’s pet causes to the property. Tenants may be able to get their own cover for pets, or you could buy landlord pet damage insurance

• Sub-lets – Standard landlord policies exclude properties that are being sub-let. Specialist sub-let insurance is available to ensure protection is available for this setup

• Structural changes – Landlord buildings insurance doesn’t cover claims stemming from poor workmanship or maintenance, or unauthorised or undeclared alterations to the property, such as extensions

• Criminal acts – While various landlord insurance policies may cover burglary, theft and even malicious acts, other criminal acts are not covered. These include running cannabis farms, brothels and other illegal enterprises 

• Accidental damage – Landlords are responsible for accidental damage to fixtures and fittings, but some incidents fall outside the scope of cover. These include wear and tear, and damage to contents

Where relevant, landlords should ensure tenants are aware of and agree to the limits of cover and exclusions, ideally in tenancy agreements.

Is landlord insurance a legal requirement?

Landlord insurance is not mandatory, but there are rules to follow and buildings cover is usually a requirement of mortgage lenders. 

Without cover, unexpected expenses could quickly outweigh any earnings from the property.