Landlord Insurance

Landlord insurance is insurance for landlords to protect their property and themselves (i.e., their liability). Most landlords are required to take out landlord insurance for each property they rent out, but landlords with large rental property portfolios may be able to get single cover for all properties.

Types of landlord insurance

There are three main types of landlord insurance, namely building insurance, contents insurance and liability insurance. Some policies will include extras and add-ons that provide landlords with further protection.

Landlord building insurance covers you against damage to the main structure of the property. To secure a buy-to-let mortgage on a property, you’ll probably need to prove that you have taken out landlord building insurance. You may pay for some degree of cover within service charges if the property is part of a block of flats.

Landlord contents insurance covers the fixtures and furnishings within the property. For example, the policy may cover the cost of replacing a carpet in the event of a flood. These policies can be purchased as stand-alone policies, or they may be an add-on to building insurance. They only cover the items you own – not your tenant’s belongings.

Landlord liability insurance covers you for the financial costs if anyone using your property suffers an accident due to the condition of the property, including electrical systems. The policy will pay out if you owe compensation.

How much does it cost?

The cost of landlord insurance will differ based on your rental properties and your needs. The number of prospective tenants and the location of the property can also influence costs.

How to make a claim?

To make a claim on any landlord insurance policy, you should contact the policy provider directly unless told otherwise.

Will the Covid pandemic affect landlord insurance?

The pandemic may have disrupted some typical processes when it comes to making a claim on landlord insurance. Policy providers could be more lenient if landlords have not been able to make regular inspections due to restrictions.

Landlord insurance policy – key terms

1. Perils – this term is used to describe items or events the policy covers.
2. Excess – this term refers to the amount you will need to pay towards repairs and replacements.
3. Sum insured – this term refers to the maximum figure an insurer will pay you for one claim.
4. Exclusions – these are the items or events not covered within the policy.