Key Takeaways

  • Landlord insurance is essential if you decide to rent out your property, providing protection for both the property and potential loss of rental income if tenants fail to pay.
  • If you have a buy-to-let mortgage, having landlord insurance may be a requirement set by your lender.
  • Landlord insurance covers common risks like fire, theft, and flood, along with additional coverage for structural damage, legal costs, rent arrears, and more.
  • Rent protection or rent guarantee insurance is an optional add-on that covers the landlord in case tenants fail to pay rent, helping to avoid financial difficulties.

What is Landlord Insurance?

Landlord Insurance protects your property whilst let. It also covers your income if tenants fail to pay rent. Landlord insurance covers the basic home insurance needs for rental properties with additional cover. It is also known as buy-to-let insurance.

Landlord insurance serves as essential protection for your property while it is being rented out. In addition to safeguarding your property, it offers coverage for potential income loss in case tenants fail to pay rent. This specialised insurance meets the basic home insurance requirements for rental properties, providing additional cover specific to the needs of landlords. It is also commonly referred to as buy-to-let insurance, reflecting its purpose of insuring properties intended for rental purposes.

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Your appointed adviser will contact you to discuss your quote, you decide how to proceed. This service is free and insurance advisers have a range of insurers to offer options from.

Is Landlord Insurance required?

If you're renting out your property, it's better to get landlord insurance instead of regular home insurance. Regular policies usually don't cover rentals. Landlord insurance isn't mandatory, but it's wise to have it for protection against unexpected problems. If you have a buy-to-let mortgage, your lender will likely require landlord insurance.

What is covered by Landlord Insurance?

Landlord insurance will cover your rental property against the common standard risks of fire, theft, and flood.

A comprehensive policy will also include the following:

  • Damage to the structure of the building, as well as fixtures and fittings. This is provided for items that do not belong to your tenants, such as furniture, carpets, and curtains
  • Rental income cover - if you are unable to let the property due to damage 
  • Cover for legal costs, in case you are taken to court
  • Some policies cover vacant periods between tenants
  • Accidental damage by tenants
  • Boiler breakdown
  • Rent arrears

Landlord Insurance Rent Protection

Rent protection or Rent Guarantee is a bolt-on cover for a Landlord's home insurance policy.

It pays a benefit to the landlord should their tenants fail to pay rent. It can be extended further to include legal expenses cover.

Legal expenses cover would pay for the legal fees required for proceedings to begin to evict tenants. The cover can be provided within the landlord's insurance policy.

If you were to financially suffer as a result of your tenants not paying rent for a period of time, insuring for rent protection may be a worthy addition to your policy. Not having the rental income could mean you are unable to pay your own Mortgage and could see yourself falling into repayment arrears. This can be avoided by protecting yourself with Rent protection insurance.

A claim must be submitted for approval and the insurer will take a case-by-case approach to claims. Generally, the benefit amount can pay up to £2,500 a month for up to 18 months.

What types of property are covered with landlord insurance?

Landlord insurance is not limited to covering residential lettings only. It is available to cover commercial property, such as shops, offices, or warehouses. It is also possible to cover multiple properties under one policy. 

  • Residential properties let out to private or public tenants
  • Commercial property let out for business use
  • Multiple properties can be insured under one policy

Is standard home insurance suitable for letting properties?

A standard home insurance policy could become void if you choose to let out your property. This is because it is a condition of a personal home insurance policy that you are the occupier. It is also a further condition that the property must not remain unoccupied for more than 30 days. If you are letting a property, there may be extended periods where the property is unoccupied whilst you are finding new tenants.

Standard home insurance policies do not offer the level of protection that is required for a landlord letting their property.

Landlord Insurance Advice

When it comes to obtaining advice for landlord insurance, it's highly beneficial to consult with an insurance adviser specialising in this area. An insurance adviser can provide invaluable expertise and help you navigate the intricacies of landlord insurance. They will assess your specific needs, taking into account factors such as the type of property, location, and desired coverage. By thoroughly understanding your circumstances, they can offer tailored recommendations and help you select the most suitable insurance policy. An insurance adviser can explain complex insurance jargon in simple terms, clarify any doubts you may have, and guide you through the entire process. Their expertise ensures that you make informed decisions and secure adequate protection for your rental property.

Landlord's insurance cover can differ from provider to provider. It's important to understand what your policy does and doesn't cover. Landlord's insurance usually covers the standard damage caused by fire, theft, and flood. It covers damage to the structure of the building, as well as fixtures and fittings. Items that do not belong to your tenants, such as furniture, carpets, and curtains. On top of this, you can have your rental income covered if you are unable to let the property due to damage. There is cover for legal costs, in case you are taken to court. Some policies cover vacant periods between tenants, accidental damage by tenants, boiler breakdown, and rent arrears.

Rent guarantee insurance forms part of a Landlord's insurance policy and it covers the income you could be earning if your tenants are unable to pay their rent.

As with all insurance, the cost can vary from policy to policy, provider to provider. The factors that influence the price are, the location of the property, the size and age of your property, if you are letting to students, the level of cover you require, and sometimes paying annually can make the policy cheaper overall. It's a good idea to seek advice about landlord's insurance to ensure you are not paying for additional add-ons which are not needed. Likewise, it's important to ensure you are not underinsured.

Landlord insurance is not a legal requirement. If you buy a property using a buy-to-let mortgage, it may be a condition of the loan that this is in place if you intend to let the property.

Landlords insurance is tax deductible. You can claim for the expenses of running and maintaining the property, this includes landlord insurance and rent protection.

Yes, landlord insurance does differ from building insurance. It generally covers a lot more and is more suitable if you intend to let the property. It includes additional cover, such as rent guarantee and legal cover. If you let out your property, standard building insurance may become void if the terms do not allow for it to be let.

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