Best Landlord Insurance UK Edition [2024] (2024)

The Best Landlord Insurance in the UK in 2024: What You Need to Know?

Before you take out an insurance policy, you need to make sure that you understand what landlord insurance typically covers and how much it costs.

What is landlord insurance?

Landlord insurance is an insurance product specifically tailored to help reduce the risk of financial loss when renting out a property. It typically covers the landlord against any damages to the building and furniture and fixtures provided.

Do I need landlord cover if I have homeowners insurance?

In essence, yes. Even the best homeowners insurance companies offer separate products for landlords, designed to cover landlord-specific risks, such as liability insurance and loss of rental income in addition to buildings and contents coverage.

What types of landlord insurance are available? What does landlord insurance cover?

Landlord cover usually includes several different types of insurance:

• Landlord building insurance provides cover for damages to the property’s structure including walls, the roof, floors, and fixtures in the bathroom and kitchen.
• Landlord contents insurance: This is sometimes sold as a standalone policy or in combination with buildings insurance and covers against damages to furniture and other items you leave on the property. It does not cover the personal belongings of the tenant.
• Landlord rental protection insurance, or rent guarantee insurance, will cover any loss of rent when a tenant is not able to live in the property.
• Landlord liability insurance covers costs if someone is injured on your property and you are deemed liable.
• Accidental damage provides cover if the property is damaged accidentally by the tenants.
• Landlord unoccupied property cover offers protection while the property is vacant.
• Home emergency cover provides 24/7 coverage against potential issues with the property’s essential services, such as burst pipes, roof leaks, electricity issues, infestations and more. This is typically sold as an optional extra.

Bear in mind that you can always choose insurance that covers just one type of risk or go for a comprehensive policy and select add-ons such as alternate accommodation or home emergency cover.

What is not included in landlord insurance?

Most insurers will not cover damages caused by

• General use or poor upkeep/craftsmanship
• Deliberate damage caused to the property by tenants
• The property of the tenants (tenants need to take out their own contents insurance to protect their belongings)
• Damages caused by dogs or cats. You could include pet damage as an optional add-on, although it is likely to cost you more.

How much does landlord insurance cost?

There is no definitive answer as your premiums are calculated depending on several factors such as:

• The property’s age, structure, number of rooms, and roof structure;
• The location as homes situated in areas with high crime rates or flood risks tend to pay higher premiums;
• Your claims history. Landlords who have made several claims in the past usually pay more for insurance;
• The number and type of tenants. Sometimes insurers will charge you more if you are renting out the property to risky tenants like students;
• The type of policy you choose. Bundling several types of insurance into one is often available at a discount. On the other hand, getting add-ons will cost extra;
• Security measures. Installing smart controls and cameras leads to lower premiums.

How can you save money on landlord house insurance?

There are a few ways to save money when purchasing landlord insurance:

• Compare landlord insurance quotes: Shop around before signing on the dotted line. You can compare landlord insurance in the UK online or by calling the insurers directly and getting a quote.
• Pick your tenants wisely: The cost of insurance will be influenced by the type of tenants residing in your property.
• Choose only the extras that are absolutely necessary: For instance, home emergency cover usually comes with many exclusions and if the home is in good shape, it may not be absolutely necessary.
• Take care of your property: Premiums are lower on properties that are regularly maintained. What’s more, even the best landlord’s insurance in the UK does not cover damages caused by general wear and tear, so keeping the home in good shape is a must.
• Don’t make a claim unless you have to: The more claims you make, the higher your premium will be.
• Pay once a year: Monthly instalments tend to add up and actually cost more than a yearly payment.
• Try not to leave your property vacant: If there aren’t any tenants in your building, you’ll need extra coverage, which can be expensive to add.

Wrapping Up: Is It Worth Having Landlord Insurance?

Landlord insurance is not a legal requirement, but it is a necessity. Renting out properties comes with a lot of risks—tenants could damage the home or it could be unoccupied for several months, resulting in financial losses.

So, if you are getting into the property market, think about what kind of landlord insurance you need, compare quotes and get coverage for your property. It may not eliminate all the risks involved in letting property, however, it will give you peace of mind.

Is it a legal requirement to have landlord insurance in the UK?

No, taking out landlord insurance isn’t obligatory in the UK, though if you’re taking out or switching to a buy-to-let mortgage, the lender will probably ask you to take out a policy as part of the mortgage deal.

What is covered in landlord insurance in the UK?

Landlord insurance in the UK provides standard buildings and contents coverage, as well as liability cover in case someone is injured on the property. There are additional extras to choose from including loss of rent, alternative accommodation, malicious damage caused by tenants or vandalism and more.

Does landlord insurance cover tenant rent?

Most insurance companies offer rent guarantee policies that cover unpaid rent while the property is unoccupied due to damages or repairs. This is usually provided alongside alternative accommodation cover, i.e. paying for a place your tenants can stay while the property is uninhabitable. The best landlord insurance in the UK, though, can also provide coverage if the tenant defaults on payments.