Landlord insurance protects property owners from financial losses associated with renting out a property.
It’ll provide theft, fire and weather damage cover for the structure of the rental property and any contents owned by the landlord that are within.
Landlord insurance can also cover things like loss of rent and legal expenses, but they may not be included as standard.
Depending on what type of cover you select, most policies will usually include cover for the following as standard:
The government has passed a bill that stops landlords from starting eviction proceedings unless you’ve given your tenants six months’ notice. Both you and your tenants have a right to a payment holiday to help ease the situation. Contact your mortgage lender if you’re struggling to meet repayments. They may be able to help you.
If you have rental arrears cover you won’t currently be able to claim. That’s because your tenants need to have been evicted before most insurers will pay out.
To get your landlord quotes, you’ll be asked for a few details about the following:
Whether it’s a residential or commercial property, the type and age of the building and any materials used for construction
Their eployment status and any background and identity checks you’ve ran
Do you need buildings and/or contents insurance? Plus any addons you need
Details about any claims made in the time you’ve owned the property
Whether you’re looking to pay your premium monthly or annually
Legally, it's not a must. But it can help protect your property from all sorts of risks that come along with being a landlord, from careless tenants to general maintenance and emergency household faults.
Most mortgage providers will insist you have landlord insurance in place if you’re buying a property to let it out.
Don't rely on ordinary home insurance either, as generally you won't be covered if you rent out your house or flat. It won't cover things like unpaid rent or malicious damage caused by a tenant - all things that can be added to a landlord insurance policy.
If you’re renting out a leasehold flat in a block of flats, it’s likely that the freeholder may already have arranged buildings insurance but it is worth checking.
Compare landlord insurance quotes and see if you could save
The cover you want to build into your policy will depend on the type of property you're letting out, and what level of security blanket you want. The more options you add, the more expensive your cover will get, so it's important to understand your options and requirements:
Much like a typical buildings insurance policy, landlord buildings insurance can help cover the cost of repairs in the event of damage to the structure of your property. It’ll usually cover damage by events such as fire, flooding, subsidence, theft or vandalism.
Landlord contents insurance is much the same as you would expect from a standard contents policy, keeping the items you own within the rental property covered – things like furniture and appliances.
If the property your renting isn’t furnished, you don’t need your own landlord contents insurance. Tenants should have their own contents insurance for items they keep in the property.
Accidental damage cover can protect you from unexpected household mishaps such as a nail hammered into a pipe or spilt wine on a rug.
Legal expenses insurance can help to recover legal costs as a result of things like pursuing unpaid rent, tenant personal injury claims and eviction.
Whether it’s a burst pipe, power outage or boiler failure, landlord home emergency cover safeguards your property with 24-hour support and assistance, protecting your tenants and your premises at the same time.
Loss of rent of up to £2500 a month can be covered by rent insurance. You’ll usually only be able to claim up to 8 months rent, and only after tenants haven’t paid for at least two months.
Sometimes referred to as landlord liability insurance, liability cover keeps you protected in the event of an injury suffered by a tenant or visitor as a result of your property.
For instance, if a shelf falls and hits a tenant, landlord liability insurance should contribute towards compensation and/or legal fees.
How much landlord insurance costs depends on things like the type of cover you need and how big your property is. If you can prove your risk management is up to scratch – such as by having good security and suitable tenant checks in place - this could reduce the cost of your cover.Tony Evans - GoCompare's home insurance expert.
The cost of your premium may vary depending on the level of cover you choose, the type of property your letting out and your tenants’ situation.
Here are 5 tips for getting a cheaper premium:
Reduce your risk by installing burglar and smoke alarms within the property
Only select the cover you really need and correctly valuate the rebuild cost of your property and contents
You might need extra cover if you leave it empty for a long period
Your policy might not cover pet damage, or you might have to pay extra for cover if your tenants have a dog or cat
Shopping around is a great way to get a good deal
Because each of your properties has a different location and tenants, insurers will calculate the risks and premiums differently.
Therefore, to insure multiple properties you’ll need to run an online quote for each property separately.
Properties undergoing renovations or in a poor state of repair are considered high risk. As such, you may have a fewer number of insurers willing to insure you.
You may have trouble finding an insurer if your property:
Properties left unoccupied for an extended period will need to be covered by a specialist insurance policy. This is known as unoccupied home insurance and it’s suitable for landlords whose properties are empty for 30 or more days.
This may be applicable to you if your property is in between tenants or refurbishing.
You'll technically be known as a resident landlord and you'll need to speak to a specialist insurer to see if you need landlord insurance.
Even if your standard home insurance policy can cover you, premiums may go up because you're sharing your residence.
Landlords in England and Wales have a legal obligation to:
If you live in Scotland or Northern Ireland, you can find out about landlord resposibiltes via the following guides:
Page last reviewed: 15 March 2021
Next review due: 15 June 2021