A Comprehensive Guide On Landlord Insurance

Your home or property is a huge investment, and If you are thinking of letting out your property, it is better to protect your investment by arranging proper insurance. Unfortunately, standard home insurance cannot provide you with the required cover in this case, and you have to purchase a particular insurance policy known as landlord insurance. No matter how sensible your tenants are, there are some unforeseen circumstances that can cause damage to your property, and you need a cover in such situations. From building to legal expenses and fittings to fixtures, this insurance can meet all your requirements.

Here is a complete guide on landlord insurance that will help you find the best insurance for your property when renting it out. 

What Is Landlord Insurance? 

Landlord insurance provides special cover for rental properties. Different types of policies are available, offering various levels of protection. It includes:

  • Content insurance
  • Building insurance
  • Rent guarantee insurance
  • Unoccupied property cover
  • Liability insurance

You can add up extra cover in your policy according to your requirements. Let’s look closer at each type of insurance.

What does Building Insurance Cover? 

As long as you have building insurance in your policy, your building is covered. Landlord building insurance can cover the cost of rebuilding or repairing if there is damage caused by flood, vandalism, explosion or accidental damage caused by tenants. If you own a flat, it is the responsibility of the freeholder to purchase building insurance. You just need to have a cover for fittings and fixtures. 

Landlord Content Insurance

If you’re letting out a furnished property, you will need content insurance to protect your belongings. Most landlord insurance UK includes content insurance, and in some, you might have to choose it as additional cover. Content cover contains carpets, curtains and kitchen appliances and having it can give you significant peace of mind.  

Rent Guarantee Insurance

This type of cover in landlord insurance will provide you with a cover if your tenant defaults. If your tenant does not pay rent for two consecutive months, this insurance gives you unpaid rent up to a certain amount. It can help you to continue your mortgage payments even when not receiving income from the rent. 

Unoccupied Property Cover

Standard home insurance does not provide cover for unoccupied property. So if you have to go on a vacation or wait for tenants to move in and leave your property unoccupied, you have to purchase a separate cover to protect your building and contents. 

Liability Insurance

Landlord liability insurance is a major part of landlord insurance policies. It covers the compensation cost of claims that are made against you by a visitor or tenant for an injury that is blamed on your property. For example, if a tenant slipped due to a loose floor in the rental property and got injured seriously, you might be held responsible for covering the medical costs. 

How Much Landlord Insurance Costs? 

The cost of landlord insurance varies from insurer to insurer. However, insurance premiums depend on several factors, including:

Your Location

Location of your property matters. If it is located in an area with a high crime rate or there are more chances of natural disasters like floods or storms, you have to pay more for insurance. 

Condition Of Property 

The insurers look at the property’s condition, its structure and how old it is to assess the risks. The insurance premiums then vary with the type of risk.  

Claims History

If you have a history of making a number of claims, it can make you a high-risk landlord, and insurers will charge a high cost for insurance. 

Your Tenants 

Insurance costs also depend on the tenants. For example, if you are renting your property to students, the insurer may consider these tenants as high risk, and you have to pay more for the cover.

Type Of Cover 

The insurance cost varies with the cover you need for your property. Therefore, you must take the proper time to decide which type of cover will be suitable for you and avoid the additional cover if not needed. In this way, you can get cheap landlord insurance

How You Pay  

You can save money on insurance if you pay a lump sum amount instead of spreading the payment in monthly instalments.

There are a number of landlord insurance providers in the UK. However, you must shop around to find one providing competitive cost and best cover.


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