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What insurance a landlord needs to rent out a property.

Updated: Apr 14, 2023

Landlord insurance is similar to home insurance however it is specifically to cover a rented property. It protects landlords from financial losses associated with renting out a property and provides theft, fire and weather damage cover for the structure of the rental property and any contents owned by the landlord that is within.

Is it a legal requirement?

No, Landlord insurance is not considered a legal requirement, however it is wise investment to make as in the future it could be beneficial. When a property is damaged replacing items within can become quite expensive.

What does it cover?

A standard landlord insurance policy can offer cover for a range of things, including:

  • Fire, flooding and explosions

  • Theft and vandalism

  • Subsidence

  • Escape of water

  • Replacement for locks and lost keys

  • Boiler breakdown

  • Alternative accommodation

  • New for old cover

What types of covers are there? The type of cover you want will depend on the type of property you're letting out, and what level of security blanket you want. However, it is important to consider that the more options you add, the more expensive your cover will get:

  • Building Insurance

  • Contents insurance

  • Rental Protection

  • Property Owners Liability

  • Unoccupied Property

Buildings insurance

Covers the structure of your property, including the walls, roof, floors and extensions as well as permanent fixtures like bathrooms and kitchens.

Contents insurance

Covers the furniture, rugs and curtains you provide in the property (but not any contents belonging to your tenants).

Rental protection

Also known as rent guarantee insurance, it covers any rent lost if the tenant is unable to live in the property as a result of physical damage.

Property owners' liability

Covers any costs you might have to pay if a third party suffers injury or damage on your property and it’s deemed to be your fault.

Unoccupied property

Cover for the property while it’s unoccupied, for example if you’re waiting for new tenants to move in.

Is it worth it?

Even though it maybe more expensive up front and at the beginning, if your property were to be involved in some sort of accident and resulted in some damage, a landlord policy would be much cheaper. You are covered for items within your property that maybe damaged, meaning you reduce the amount of money you may have to pay out in the future.

Although home insurance is a cheaper bet, we would recommend purchasing landlord insurance in a buy-to-let home.

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