What type of landlord insurance do I need? How to find the right cover

As a landlord, unexpected problems can hit your property – and your profits. This guide breaks down the types of landlord insurance that can keep both safe.

Key takeaways

• Take time to consider the different types of landlord insurance

• Don’t let price alone sway you – inadequate insurance is a waste of money

• Always shop around for cover and consider which add-ons you need

What is landlord insurance?

Landlord insurance covers a wide range of policies for people who let property. Some protect your property in much the same ways as standard home insurance, while others reflect the fact that this is a form of business insurance. 

Landlords typically don’t face liability claims, such as for poor property upkeep – for instance, if your tenants don’t keep the place clean, causing a pest infestation. However, landlords can be liable for substandard maintenance of pipes, gutters, paths and doorsteps that are within the property boundary.

What are the different types of landlord insurance?

There’s no one overall landlord insurance policy. In some cases, a policy centres on a specific benefit, such as protecting the structure of a rental property, to which you can add mini policies that offer specific extra benefits, such as home emergency cover. 

Alternatively, you could buy a few standalone policies, each focusing on a particular benefit, such as covering the loss of rental income. 

Here are the main types of cover a landlord can take out:

Buildings insurance

• Landlord buildings insurance covers claims relating to your rental property’s structure  

• It also covers any permanent fittings and fixtures, such as windows, fitted kitchens, bathrooms and toilets 

• Patios, drives, garden walls, fences, gates and hedges are also typically included in cover, as are underground pipes and cables that you own and that are within your property’s boundaries

Contents insurance

• Landlord contents insurance protects items within the rental property that you own

• It covers the cost of repairing or replacing appliances, including televisions, door locks, furniture and furnishings, carpets and curtains, among other items that you or a tenant could feasibly remove

Note: tenants typically buy their own contents cover, although you can add cover for tenants’ belongings or buy full contents or appliance insurance to cover any white goods you provide for your tenants’ use, such as fridges and cookers

Accidental damage cover

• Covers unintentional damage to your property or contents that you, your tenants or their guests cause

• Typical claims include spilt drinks on a carpet, broken windows, scraped or marked wallpaper and burned kitchen surfaces

• Often bought as an add-on to buildings and contents insurance policies

Landlord liability insurance

• Protects landlords from personal injury or property damage claims brought against them by tenants and other visitors to the rental property

• Covers claims that a lack of maintenance led to the injury or damage, such as a worn staircase carpet or an uneven paving slab

• Different levels of cover are available, such as £1m, £2m or £5m, offering a solution for residential or commercial lets

Rent guarantee insurance

• Also called unpaid rent insurance, these policies protect against loss of income if a tenant doesn’t pay their rent

• They typically cover non-payment for a fixed period of up to 15 months

• Can cover debt recovery or the legal costs of eviction

Alternative accommodation insurance

• Another common bolt-on to buildings insurance, alternative accommodation insurance covers the cost of providing tenants with temporary accommodation if the rental property is uninhabitable following an insured event, such as a flood or fire

• Often sold alongside or incorporated into rent guarantee insurance

Landlord home emergency cover

• Depending on the level of cover you opt for, this can offer protection against boiler breakdowns, central heating failures, plumbing repairs, blocked or leaking drains, and damage to gas or water supply pipes

• Pest infestation treatment is also available with some policies

Malicious damage insurance

• Many policies exclude deliberate damage a tenant or employee causes to your rental property, but this type of cover is available as an add-on

• Levels of cover vary between providers, so it’s worth taking the time to compare policies

Between-tenant vacancy insurance

• Most standard landlord policies protect an unoccupied property for 30 or 60 days, which covers most changeovers in tenants

• This insurance protects your let for longer periods, when the place may be empty while tenants are sought or renovations are underway 

Specialist landlord insurance explained

Not all landlords rent out single-occupancy residential or commercial properties. If you have a block of flats or a multi-let commercial property, you may need a more bespoke insurance solution. 

Here are the main options:

Block of flats insurance

• For owners of entire blocks, several apartments within a complex or converted houses and maisonettes, catering for residential or commercial tenants, or a mix of both

• This is usually a form of buildings insurance, with each apartment’s cover based on the rebuild cost, location and claims history  

Commercial property insurance

• This can cover everything from individual work units and retail spaces to warehouses and factories

• Protects against structural, property and contents damage or loss, personal and employee liability claims, as well as loss of rent

HMO insurance

• Standard buy-to-let policies only provide cover for individual private property lets under a single assured shorthold tenancy, which doesn’t cover rental properties housing unrelated individuals or more than one family within a unit

• Caters for landlords of houses in multiple occupation (HMO), which are purpose-built or converted properties

How do I choose landlord insurance?

The first step is to assess your likely risks, bearing in mind your responsibilities as a landlord. Considering the potential for damage to the structure, such as from fire or flood, buildings cover is a must. Other cover depends on circumstances and your preferences.  

If you’re concerned that tenants may not pay their rent, rent guarantee insurance makes sense, while public liability insurance could be worthwhile if you’re worried that tenants may suffer injury at your property. 

Where can I get landlord insurance?

Landlord insurance is available from insurers and brokers. Using a comparison site is a good way to review and compare a range of policies, although always consider the following:

• The levels of cover different policies offer

• Excesses that you need to cover before the insurer steps in

• Which additional elements of cover come as standard

All these factors are more important than the premium alone.

What are the best ways to buy landlord insurance?

Where you buy insurance depends on individual circumstances. If you’re renting out a flat or a house, it’s pretty straightforward and a quick search on a comparison site tends to suffice. 

If you’re letting out a commercial property, a multi-office block or an HMO, you may want to contact a specialist. The British Insurance Brokers’ Association and National Residential Landlords Association should be able to help, depending on your property. 

Finally, take note of reviews, customer service ratings and landlord blogs that can help you identify insurers who live up to the promises they make.