Landlord insurance is a crucial safety net for anyone renting out property in the UK. Whether you’re just starting as a landlord or managing an established portfolio, the right cover can be the difference between a small hiccup and a financial disaster.
At The Right Home, our goal is to help landlords understand what landlord insurance covers, why it matters, and how to choose a policy that protects both your property and your peace of mind.
What Is Landlord Insurance and Why Does It Matter?
Landlord insurance is a specialised policy designed for rental properties. Unlike standard home insurance, it covers the unique risks landlords face—such as tenant damage, loss of rent, and legal liabilities.
👉 Why it’s important:
- Standard home insurance usually won’t pay out for incidents in a rented property.
- Without landlord cover, you could be personally liable for tenant injuries or major repair costs.
- A good policy can also cover lost rental income if your property becomes uninhabitable after a fire, flood, or major leak.
Types of Landlord Insurance Cover
Here are the main types of protection available:
- Buildings Insurance – Covers damage to the structure (walls, roof, fittings). Often required by mortgage lenders.
- Contents Insurance – Protects landlord-owned items (furniture, appliances, carpets). Tenants need their own cover.
- Landlord Liability Insurance – Covers legal costs and compensation if someone is injured or suffers damage on your property.
- Rent Guarantee Insurance – Pays out if tenants default on rent, often combined with legal expenses cover.
- Legal Expenses Insurance – Helps with the cost of court cases, such as evictions or disputes.
Optional add-ons include: loss of rent (if your property is uninhabitable), landlord emergency cover (for urgent repairs), and unoccupied property cover.
Is Landlord Insurance a Legal Requirement?
Not in every case—but in practice, most landlords need it:
- Buildings insurance is usually a condition of buy-to-let mortgages.
- Employers’ liability insurance is a legal requirement if you hire staff (e.g. a gardener or cleaner).
- Public liability insurance isn’t compulsory but is strongly recommended due to the high costs of injury claims.
Common Landlord Insurance Claims in the UK
According to recent reports, landlord insurance claims are on the rise. Here are the most common:
- Escape of water – Burst pipes and leaks (around one-third of all claims).
- Storm damage – High winds, floods, and weather damage (12–17%).
- Accidental damage – From broken fittings to drilling into pipes.
- Malicious damage – Vandalism or intentional tenant damage.
- Fire – Less frequent but the most expensive (average claim £20,000+).
📊 Average landlord insurance claims now exceed £4,000—a 20% increase in the last year.
Cost-Saving Tips for Landlords
Want to save on your policy without cutting corners? Try these:
- Compare multiple policies before deciding.
- Tailor your cover—don’t pay for extras you don’t need.
- Opt for a higher excess to reduce premiums.
- Insure multiple properties together for portfolio discounts.
- Improve security with locks, alarms, and smoke detectors.
- Pay annually instead of monthly to cut interest charges.
- Maintain a no-claims record where possible.
The Risks of Having No Landlord Insurance
Skipping landlord insurance could leave you exposed to:
- Paying repair costs for fire, flood, or structural damage.
- Losing rental income if your property becomes uninhabitable.
- Being personally liable for tenant or visitor injuries.
- Breaching mortgage terms without valid buildings insurance.
- Claim refusals if you rely on standard home insurance.
Final Thoughts
Being a landlord comes with great opportunities—but also real risks. Landlord insurance is one of the most effective ways to protect your investment, income, and peace of mind.
At The Right Home, we recommend reviewing your policy regularly to make sure it still suits your property and tenants. With the right cover in place, you can let with confidence knowing you’re protected from the unexpected.
Sources:
- The Insolvency Service (UK Government)
- Association of British Insurers (ABI)
- National Residential Landlords Association (NRLA)
- UK landlord insurance providers’ 2023–24 claims reports
