Landlord insurance
Cover options for landlords of houses, flats, HMOs and student lets, including tenants on housing benefit, with buildings, loss of rent and liability cover.
What is landlord insurance?
Landlord insurance covers a property you let to tenants: the building, any contents you provide, the rent you lose if the property can't be lived in after an insured event, and your liability to tenants and visitors. Standard home insurance usually doesn't cover a property that's let, so you need a policy written for landlords.
PIB Insurance Brokers arranges cover for landlords letting houses, flats, HMOs and student lets, including properties let to tenants on housing benefit or Universal Credit (sometimes still called DSS tenants) and properties let through councils or housing associations. A broker can be particularly helpful when your letting is more complex, for example tenant types some policies restrict, an HMO, several properties, or a property that's sometimes empty. If you have several properties, see our multi-property landlord insurance; for student lets, our student landlord insurance; for shops, offices or industrial units, our commercial landlord insurance; and for properties between tenants, our unoccupied property insurance.
What landlord insurance covers
Landlord policies usually combine a core of essential covers with optional extras, depending on the property, the tenants and how it's let. The summaries below are general examples of what may be covered in each section; your policy schedule and wording decide what is and isn't covered in any claim.
Core covers
Buildings
The structure and fixed fittings, such as kitchens and bathrooms, against fire, flood, storm, escape of water, subsidence, theft and malicious damage.
Watch for: A sum insured based on market value rather than rebuild cost, and restricted cover if the property is empty beyond a stated period.
Landlord's contents
Items you provide in a furnished or part-furnished let, such as furniture, carpets, curtains and white goods.
Watch for: Tenants' own belongings, which they insure themselves, and theft without forced entry.
Loss of rent
The rent you lose while tenants can't live in or use the property after an insured event such as a fire or flood, and sometimes the cost of rehousing tenants.
Watch for: A cover period too short to repair and re-let, and rent lost for reasons other than insured damage, such as tenants not paying (see rent guarantee).
Property owners' liability
Claims from tenants, visitors or members of the public who are hurt, or whose property is damaged, because of the building, such as a fall on a broken stair or a slate falling from the roof.
Watch for: Claims from your own staff (covered by employers' liability), defects you knew about and didn't fix, and liability you've taken on by contract.
Optional covers to consider
Rent guarantee
The rent a tenant owes if they stop paying, usually alongside legal costs to recover the property.
Watch for: Usually needs tenants to have passed referencing before the tenancy starts, and arrears that began before cover started aren't covered.
Legal expenses
Legal costs for some disputes, such as with tenants, neighbours or contractors, and some property disputes.
Watch for: Disputes that began before the policy started, claims below the policy excess.
Accidental damage
Sudden, unintended damage to the building or your contents, such as a spill on a carpet or a foot through a ceiling.
Watch for: Wear and tear, damage caused gradually, and lower limits or exclusions for damage by tenants.
Malicious damage by tenants
Deliberate damage by tenants or their guests, where insurers offer it.
Watch for: Some policies exclude it or set a lower limit, especially for some tenant types.
Home emergency
Help with sudden emergencies such as a boiler breakdown or burst pipe, including call-out costs.
Watch for: Limits per claim, and boilers beyond a stated age or not serviced.
Empty properties
Cover for properties between tenants or awaiting sale, usually on different terms from let properties. See unoccupied property insurance.
Watch for: Conditions such as regular inspections and draining down water, and restricted cover beyond a stated number of days.
Tenants, HMOs and how you let
Who your tenants are and how you let the property affect the cover. Tell your insurer:
- Tenants on housing benefit or Universal Credit: some policies restrict or price these lets differently. Cover chosen for the right tenant type avoids problems at claim time.
- Students: student lets usually need cover for shared houses and periods when students are away. See student landlord insurance.
- HMOs: houses in multiple occupation usually need a licence from the council if they're larger, and insurers usually ask about the licence and fire safety.
- Councils, housing associations and other schemes: properties let through a council, housing association or accommodation provider should be declared, with the arrangement and who the occupiers are.
If the details change during the year, such as a new tenant type or the property becoming empty, tell your insurer. Undeclared changes may lead to a claim being reduced or refused.
What landlord insurance does not cover
Typical limits across landlord policies:
- Problems that existed before the policy started: known damage and ongoing disputes are usually excluded.
- Wear and tear: buildings, fittings and contents wearing out over time isn't insurable damage.
- Poor maintenance: damage caused by defects that weren't repaired, such as a leaking roof or blocked gutters, may be excluded.
- Undeclared tenants or uses: claims may be reduced or refused if the tenant type or use wasn't declared.
- Empty periods: cover is usually restricted once a property has been empty for a stated period, often 30 or 60 days.
- Underinsurance: if your sums insured are too low, the insurer may reduce a claim in proportion (known as average).
- An excess on most claims: most covers carry an excess (the amount you pay before the insurer contributes), which varies by cover.
Conditions matter too: claims may also be reduced or declined if policy conditions aren't met. Common examples: the property empty for longer than the policy allows, tenant referencing not done where rent guarantee requires it, or legal safety checks, such as annual gas safety checks, not kept up to date.
How much does landlord insurance cost?
There is no standard price. What you pay depends on the type of property and its rebuild cost, its location, who your tenants are, whether it's furnished, the covers you choose, how many properties you insure and your claims history.
What affects the cost
- A clean claims record: insurers usually look at the last three to five years.
- Tenant type: some tenant types are priced differently, so declare them accurately.
- Security and safety: good locks, working smoke and carbon monoxide alarms and up-to-date safety checks may lower the cost.
- Accurate values: an up-to-date rebuild valuation can help reduce the risk of underinsurance or setting the sum insured higher than necessary.
- Your excess: choosing a higher excess (the amount you pay towards each claim) may lower the premium, the price of your cover.
Why work with PIB Insurance Brokers
We explore your options
We can approach insurers that cover let property, including tenant types some policies restrict, and set out the differences in cover, not just price.
We look at how you let
An HMO, students, tenants on housing benefit, a furnished let or a gap between tenants may each change what you need to tell your insurer.
We look for common gaps
A buildings sum insured based on market value, rent guarantee that needs referencing that wasn't done, or no cover for empty periods between tenants.
Here when things change
Our team is on hand throughout the policy year for advice, whether your circumstances change or you're not sure what to do next.
What our clients say
Reviews from PIB Insurance Brokers clients across the sectors we work with, collected by Reviews.io.
Letting a property, adding one, or not sure your cover fits?
Get a quoteFrequently asked questions
Is landlord insurance a legal requirement?
No law requires landlord insurance, but in practice you'll usually need it. Buy-to-let mortgage lenders usually require buildings cover, and standard home insurance usually doesn't cover a let property. If you employ staff, such as a caretaker, employers' liability is usually required by law.
Who pays buildings insurance, the landlord or the tenant?
For a let house or flat, the landlord usually insures the building and tenants insure their own belongings. In a block of flats, the lease usually sets out who insures the building, often the freeholder or a residents' management company, with the cost usually recovered through the service charge. For commercial property, the lease sets out who insures.
Do I need landlord insurance if I rent to family?
Usually, yes. If a family member lives in a property that isn't your own home, a standard home policy may not cover it, especially if they pay rent. Tell your insurer who lives there and on what basis, so the policy matches the arrangement.
Do I need contents insurance as a landlord?
Only for items you own and provide, such as furniture, carpets, curtains and white goods in a furnished or part-furnished let. Tenants insure their own belongings, and fixtures and fittings are usually covered under buildings insurance.