Landlord Insurance UK: Complete Guide for Buy-to-Let
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Landlord insurance typically includes buildings insurance (required by mortgage lenders), contents insurance (for furnished lets), landlord liability cover, and optional extras like rent guarantee and legal expenses. Standard home insurance does NOT cover rental properties.
If you're letting out property, you need the right insurance. Here's everything you need to know about landlord insurance UK.
What is landlord insurance?
Landlord insurance is a specialist policy designed specifically for rental properties. It covers risks that standard home insurance doesn't, and is tailored to the unique situation of having tenants living in your property.
A comprehensive landlord insurance policy typically bundles several types of cover:
- Buildings insurance - Covers the structure itself
- Contents insurance - For furnished properties
- Landlord liability - If someone is injured at the property
- Loss of rent - If the property becomes uninhabitable
- Legal expenses - Optional cover for disputes
- Rent guarantee - Optional cover for tenant default
Is landlord insurance compulsory?
Landlord insurance itself isn't legally required. However, if you have a buy-to-let mortgage, your lender will almost certainly require buildings insurance as a condition of the loan.
Even without a mortgage, going without insurance is extremely risky. A single claim for fire damage, flooding, or liability could cost tens of thousands of pounds.
Buildings insurance explained
Buildings insurance covers the structure of your property - walls, roof, floors, fitted kitchens and bathrooms, and permanent fixtures. It protects against fire, flood, storm damage, subsidence, and other perils.
Key points about buildings insurance:
- Required by virtually all mortgage lenders
- Should cover the rebuild cost, not market value
- Check the excess amount carefully
- Ensure it covers 'trace and access' for leak investigations
Contents insurance - when you need it
Contents insurance covers movable items you own in the property - furniture, appliances, curtains, carpets. You only need this if you're letting the property furnished or part-furnished.
Note: Contents insurance covers YOUR belongings, not your tenant's. Tenants should have their own contents insurance for their possessions.
Landlord liability cover
Landlord liability insurance (also called property owners' liability) protects you if someone is injured at your property or their property is damaged due to a fault with your building.
Examples of what it covers:
- A visitor trips on a broken step and is injured
- A roof tile falls and damages a neighbour's car
- A tenant is injured due to faulty wiring
Most policies offer £2-5 million of liability cover. Given the potential costs of injury claims, this is essential.
Rent guarantee insurance
Rent guarantee insurance (RGI) pays your rent if your tenant stops paying. It's an optional extra but can provide peace of mind, especially for landlords who rely on rental income to cover mortgage payments.
Important conditions typically apply:
- Tenants must be properly referenced before the tenancy starts
- There's usually a waiting period (often 1 month) before claims can be made
- Cover is typically limited to 6-12 months of rent
- You must start legal action promptly when arrears occur
Legal expenses insurance
Legal expenses insurance covers the cost of legal action related to your rental property. This can include eviction proceedings, disputes with tenants, and tax investigations.
With eviction cases potentially costing £2,000-5,000+ in legal fees, this cover can pay for itself with a single claim. It's often bundled with rent guarantee insurance.
What does standard home insurance NOT cover?
Standard home insurance policies are designed for owner-occupiers, not landlords. Using a home insurance policy on a rental property could invalidate your cover entirely.
Home insurance typically excludes:
- Properties let to tenants
- Liability arising from your role as landlord
- Loss of rent if property is uninhabitable
- Malicious damage by tenants
- Legal expenses for tenant disputes
Important: If you start renting out a property covered by home insurance, you must inform your insurer immediately. Failure to do so could void your entire policy.
How much does landlord insurance cost?
Landlord insurance typically costs £150-400 per year for a standard property, depending on the property value, location, cover level, and add-ons selected.
| Cover Type | Typical Annual Cost | Notes |
|---|---|---|
| Buildings only | £100-200 | Unfurnished properties |
| Buildings + Contents | £150-300 | Furnished lets |
| Comprehensive (inc. liability) | £200-400 | Recommended minimum |
| Rent guarantee add-on | £50-150 | Depends on rent level |
| Legal expenses add-on | £30-80 | Often bundled with RGI |
Factors that increase premiums include: high-value properties, properties in flood-risk areas, HMOs, older buildings, and claims history.
Frequently asked questions
Do I need to tell my insurer I'm renting out?
Yes, absolutely. If you have standard home insurance and start renting out your property, you must inform your insurer immediately. Failure to do so could invalidate your entire policy, leaving you uninsured. You'll need to switch to a landlord insurance policy.
What about accidental damage cover?
Accidental damage cover is usually an optional extra on landlord policies. It covers unintentional damage like spilled paint on carpets or a broken window from a ball. It's worth considering for furnished properties but adds to the premium.
Does landlord insurance cover tenant damage?
Standard landlord insurance does NOT cover malicious or intentional damage by tenants. Some policies offer 'malicious damage' cover as an add-on, but it often has conditions like requiring you to have properly referenced tenants. Check your policy wording carefully.
What if property is empty between tenants?
Most landlord policies have void period clauses limiting cover when the property is unoccupied, typically 30-60 days. After this, cover may be reduced or invalidated. Some insurers offer extended unoccupied property cover as an add-on. Always check and inform your insurer of void periods.
Managing this yourself?
LandlordOS helps UK landlords stay compliant and organised:
- Automatic compliance reminders for Gas Safety, EICR, EPC
- Document storage with AI-powered certificate reading
- Tenancy tracking and rent management
LandlordOS tip
Keep a record of your insurance policy details, renewal dates, and what's covered in your property management system. Set reminders for renewal dates so you're never caught without cover. Also document your property's condition with photos - this makes claims much easier to process.