What is landlord insurance?

Although they sound similar, regular home insurance and landlord insurance are designed for different situations. Home insurance is typically for owner-occupied properties. Landlord insurance, also known as buy-to-let insurance, is a specialised form of cover designed for people who rent out residential property.

Landlord insurance is your safety net if something goes wrong with your rental property, from fire and floods, to tenant vandalism and break-ins. Some landlord insurance policies go much further, such as including landlord liability cover to provide protection if a tenant or visitor is injured at the property and a claim is made against you.

If you’re renting out a property – whether you’re an experienced landlord or you’ve simply decided to let a former home – specialist cover is often a sensible move. While it’s not something you have to take out by law, buy-to-let mortgage lenders will usually expect landlord insurance to be in place before tenants move in.

What does landlord insurance cover?

Policies vary quite a bit between insurers and the options you choose, but here’s a breakdown of what a landlord insurance policy can include:

Buildings cover

Protection for the structure of your property – walls, roof, floors and permanent fixtures such as fitted bathrooms and kitchens – if they’re damaged by events like fire, flood, storms, escape of water or vandalism.

Contents you own

If you let a furnished property, some policies include cover for your furniture, appliances, carpets, curtains and other items you provide for tenants. This cover does not extend to your tenant’s belongings though, they will need to arrange their own tenant's contents insurance.

Property owners’ liability

Helps cover legal and compensation costs if a tenant or visitor gets injured on the property due to things you’re legally responsible for. Think slips, trips or problems caused by poor maintenance.

Alternative accommodation

Some policies include cover for tenants’ temporary housing if the property becomes uninhabitable after an insured event.

Subsidence cover

Pays for repairs if the ground under your property shifts and causes serious structural damage.

Replacement locks

If keys are lost or stolen, this cover helps pay to replace locks or lock mechanisms. It keeps the property secure and reduces stress about unauthorised access.

Optional extras

Many landlord insurance policies offer optional extras that provide extra protection for your property, tenants, and income. What’s included varies between insurers, but common add-ons include:

Rent guarantee

Provides cover if rent can’t be collected because the property is uninhabitable after damage, for example, after a fire, floor or storm. Some policy options may also cover rent for periods between tenants, or when tenants fall into rent arrears, up to a set time limit.

Legal expenses cover

Helps cover legal costs if legal action is brought against you, for example if a tenant is injured. It can make tricky situations much easier to manage.

Unoccupancy cover

Keeps your property insured while it’s empty. Standard cover is usually short-term, but this optional extra extends protection during longer gaps between tenants.

Landlord emergency cover

Helps tackle urgent issues like boilers, heating, plumbing, electrics, roofing, drainage, pests and broken windows or locks. An an example, one insurer pays out up to £500 to cover callout charges, labour and parts, plus access to a 24/7 helpline and unlimited claims per year.

Remember, the exact features and their limits depend on the insurer and policy you select, and optional extras may cost more but add valuable protection. It’s a good idea to compare landlord insurance options to find the right fit for your investment property.

What isn’t covered?

Even the best landlord insurance can’t cover everything. Here’s an example of what one leading insurer doesn’t include:

  • Wear and tear: Normal ageing and everyday use of the property isn’t covered. If walls crack, paint peels or carpets wear down over time, that’s on the landlord to fix. Insurance is there for unexpected mishaps like storms, floods or break-ins – not the slow march of time.

  • Tenant’s belongings: Landlord insurance only covers the building and any items you provide, like carpets, curtains or appliances. It won’t cover your tenants’ personal belongings. If tenants want cover for their stuff, they’ll need renters’ insurance.

  • Long-term empty properties: If your property sits empty, most policies give you a short grace period – say between one and a few months depending on the insurer – before restrictions kick in. After that, cover may be reduced, and some types of damage (like leaks or vandalism) might not be included while the property is unoccupied.

  • Boilers: Most policies don’t include boiler cover as standard. Some insurers offer it as an optional extra, so check if you want that extra layer of protection.

You’re also likely to find that standard exclusions to buildings insurance apply, including:

  • Damage caused by wet rot, dry rot or frost.

  • Storm damage to fences, gates or hedges.

  • Problems resulting from poor workmanship or design faults.

  • Any events or damage that happened before your policy started, or situations you knew about beforehand (like a flood warning for your area).

  • Damage caused by domestic animals, such as chewing, scratching, tearing or fouling.

The list above is a handy guide, but you do need to check the specifics of any policy you are considering. Read the policy details carefully and make sure you understand all the exclusions.

How much does landlord insurance cost?

There’s no one-size-fits-all price for buy-to-let insurance – it all depends on your property, how it’s let, and the level of cover you choose. As a ballpark figure, one leading insurer states that policies can start from around £14 a month. But of course, premiums vary depending on your property, the insurer and the level of cover you select.

A few of the main things that can push your premium up or down include:

  • Rebuild value: How much it would actually cost to rebuild your property from scratch.

  • Location: Postcode matters – crime hotspots or flood-prone areas can bump up the cost.

  • Property type: Big houses, listed buildings, HMOs or multiple lets usually come with higher premiums.

  • Extras chosen: Want contents cover, rent protection, or legal cover? That’ll typically add a bit more.

  • Claims history: If you’ve claimed before, insurers may charge a little extra.

  • Security features: Alarms, CCTV, and solid locks can sometimes help bring costs down.

  • Your excess: Picking a higher voluntary excess – that’s the amount you agree to pay yourself if you make a claim, on top of any fixed excess – can help bring down the cost of your premium.

  • Number of properties: You can usually cover multiple rental properties under one policy. Adding more properties increases the total cost, but it’s often cheaper than taking out separate policies.

Remember, it’s always worth shopping around when your renewal comes up. Even small differences in cover or excess can make a big difference to the premium.

Answering your questions about landlord insurance

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