If you let out a property, your standard home insurance is unlikely to cover it. Letting brings risks that a typical homeowner’s policy doesn’t account for, from tenant damage to lost rent. Landlord insurance is designed to fill that gap. Here’s what you need to know.
Why standard home insurance isn’t enough
Most home insurance policies are designed for owner-occupiers. If you let the property without telling your insurer, or without the right type of policy, you may find a claim refused. Many buy-to-let mortgage lenders also require appropriate buildings insurance as a condition of the loan.
What landlord insurance typically covers
- Buildings cover: the structure of the property, including walls, roof and fixtures, against risks such as fire, flood, storm and subsidence.
- Property owner’s liability: protection if a tenant or visitor is injured because of the condition of your property and makes a claim against you. This is one of the most important parts of a landlord policy.
- Landlord’s contents: if you let the property furnished, or provide items such as white goods, carpets and curtains.
Optional extras worth considering
- Loss of rent: covers rent you lose if the property becomes uninhabitable because of an insured event, such as a fire or major leak.
- Rent guarantee: covers unpaid rent if a tenant falls behind. This often requires tenants to have passed referencing checks.
- Legal expenses: helps with the cost of legal action, such as recovering possession or pursuing unpaid rent.
- Malicious damage by tenants: not always included as standard, so check the policy wording carefully.
- Accidental damage: for unexpected one-off incidents.
Common pitfalls
- Unoccupancy: many policies restrict cover if the property is empty for more than a set period, often 30 to 60 days. Tell your insurer about void periods.
- Tenant type: some policies exclude or charge more for certain tenant types, such as students or houses in multiple occupation (HMOs). Always be accurate about who lives there.
- Underinsurance: buildings cover should reflect the cost of rebuilding the property, not its market value.
- Maintenance: insurers expect properties to be kept in good repair. Claims resulting from wear and tear or neglect are usually excluded.
Keeping up with regulation
Private renting in England has been going through significant reform, including changes to how tenancies work and how landlords can regain possession. Changes like these can affect the value of cover such as legal expenses and rent guarantee, so it’s worth reviewing your policy whenever the rules change.
Policy features vary between insurers, so always read the policy wording.
Whether you have one rental property or a growing portfolio, we can compare landlord insurance across the market and make sure your cover matches how your property is let. Get in touch for a free consultation.
