As a landlord, what insurance do i need?

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Are you thinking about becoming a landlord in the UK? While it can be a lucrative investment, it can also be a risky one without the proper protection in place. 

This is why you need insurance and specifically landlord insurance, building insurance and rent guarantee insurance.

In this article, we’ll explore why these insurances are so important for landlords, why it’s a worthwhile investment and where to begin the process of taking out insurance if you think it is a good idea.

As a landlord in the UK, what insurance do I need?

Due to the nature of property business. You are putting in yourself to make a lot of money if you do the right thing. But you also open yourself up to a lot of problems at the same time. These may result in a lot of financial or legal difficulty in the future.

This means you may run into issues like broken plumbing systems, the deterioration of a property and even natural disasters. This may wipe out your profit in the coming years.

Landlord insurance for UK landlords

Landlord insurance gained it’s name by helping landlords and was designed for rental properties. So is an insurance specific to those properties. It gives a landlord cover from things like the costs of any potential court cases and cover from rent arrears.

However, because the insurance can be so beneficial, there is a strict process in gaining approval. There is also a strict process in determining whether the insurance can cover certain tenants.

A landlord deciding on what insurance

When is landlord insurance required by law? 

You may be happy to know that landlord insurance is not required by law. However, there may be the need for there to be landlord insurance. This is if you are buying a property with a lender who has this term in place.

Banks and lenders have the same vested interest as the landlord. For instance, in ensuring that the property is able to maintain profitability. 

What are the requirements of landlord insurance?

The two main things that landlord insurance covers are disputes and rent arrears. That is not to say that there could be another cover out there that has more topics associated with it. Landlords will generally run into these legal issues the most. So, these policies generally cover:

  • Legal disputes
  • Rental arrears

Do you need landlord insurance for a flat?

No, you don’t need landlord insurance for a flat.

However, because of the increased likelihood of legal complications in a flat it may be worth it.

For instance, a disputes over the leasehold or freehold agreement.

That is not to say that all flats are leasehold. But there is a bigger chance that you will run into one of these issues.

What is the difference between landlord insurance and landlord contents insurance?

The difference between the two is that landlord contents insurance covers the furniture and equipment.

This would be owned by the landlord in their rental property.

Whereas landlord insurance only tends to cover rent arrears and legal cover.

Nonetheless, these are just names.

There is a good chance you can find contents insurance with elements of general landlord’s insurance

Or, even find insurance with uncommon additions like landlord boiler cover.

Building insurance

Traditional home insurance covers both the structure of a home as well as the contents. But buildings insurance only covers the structure of the home.

A lot of landlords make the choice to go for building insurance rather than home insurance.

In general, this is because the contents of the property may not be theirs.

Especially if the home is unfurnished and the furniture is the tenant’s.

This means they can reduce costs by only providing what is completely necessary.

Only needing to maintain the structure of the home for instance.

And if there was structural damage or the roof or windows were damaged they’d be covered.

This could happen in the event of a natural disaster for instance.

home insurance for a landlord

Rent guarantee insurance

To put it simply, rent guarantee insurance is insurance that can protect landlords from arrears.

The cost of a tenant not paying their rent and the cost of tenant taking a landlord to court are covered.

At lofti, we are able to provide rent guarantee insurance for tenants.

This is simply done by having your property referenced by the process that we have in place. 

Because of how thorough our checks are. Landlords will always be able to ensure that their tenants have a low chance of falling into rent arrears.

Therefore, we are willing to provide rent guarantee insurance that is compliant with our checks.

You can sign up to our software below where you can gain access for completely free for the first five tenancies!

See how our software can help you out first hand!

Property owner’s liability cover

In the event that there is a problem with a property. It often pays off to have the property owner’s cover. If someone is living in a home owned by a landlord. And they somehow got injured, there may be a legal case made against the landlord.

While it may well be true that the property wasn’t safe.

Despite this, the landlord may still get convicted. As a result, it may still be a good idea, as any legal costs will still be accounted for.

Legal protection

On top of the cover that you may get from property owner liability. Some landlords may need their own individual type of legal cover. This is if they find their property is more vulnerable to threats.

For instance, if a landlord finds they are likely to fall into a disagreement with a tenant.

They may want to take out cover for court or if they think there could be damage done to property.

This could be if they have a violent or unpredictable tenant for instance.

Unoccupied property insurance

Vacant properties carry a significant amount of risk because they are at risk of being broken into.

There could be vandalism done to the property if there are obvious signs that no one is home. Especially over long periods of time.

As a result, it may be recommended that if you are going away for a long period of time.

Or, if you are waiting a while to find a tenant as a landlord.

So, take out unoccupied home insurance that protects you in this event.

What’s good about this type of insurance is that it often includes other types of cover in it too.

Thins like gas leaks, natural disaster cover and electricity damage over time can be included.

This ensures you won’t have to take out more than one type of insurance.

Commonly, property that is most likely to need unoccupied home insurance is student accommodation.

during the summer break, houses and flats can have no one living in them for months or more.

So if you are a landlord with this type of premises you may want to consider it.

Adding to this, consider how prices compare across companies too.

As a landlord, how should you obtain insurance for your property?

As a landlord, protecting your property with insurance is crucial.

It ensures your investment is safe and secure. But with so many different insurance options available. It can be overwhelming to know where to start.

You need to begin by understanding what your needs are as a landlord.

Also, how you can use those needs to make sure you have the right insurance. Then, it is about comparing prices and making sure you agree with the terms.

These terms will be set out by an insurance provider. Check out this guide here on learning how to compare prices if this is what you are doing.

House insurance for a landlord

Assess Your Needs

The first step in obtaining insurance for your property is to assess your needs. Ask yourself what type of coverage you need and what risks you want to protect against. 

This may be based on the way your property is being used and your intentions for the future. For example, the insurance you need when buying a house will be completely different to anything else.

Landlord insurance tends to be specifically designed for landlords and offers protection against risks.

Risks may include damage caused by tenants or loss of rental income due to unforeseen circumstances.

Building insurance protects the structure of the building. Including walls, roof, and foundation, against damage caused by fire, storms, or other events. 

Rent guarantee insurance provides financial protection if tenants fail to pay rent. Property owner’s cover is a comprehensive policy that includes a range of protections.

Finally, unoccupied property insurance is designed for properties that are empty for extended periods.

Research Insurance Providers

Once you’ve assessed your needs, the next step is to research insurance providers. Look for providers who specialise in the type of insurance you need. And look who have a good reputation in the industry. 

This can be done by a quick Google search where you check customer reviews to get an idea.

Or you can also speak to an insurance broker like this one.

Get Quotes

Once you’ve found a few potential insurance providers by comparing them. The next step is to get quotes.

Contact each provider and provide them with the details of your property. And the coverage you need. 

They will then provide you with a quote. Which you can compare to find the best value for money.

Often, these quotes will be based on a rebuild cost assessment. So you may have to have a surveyor in your property beforehand.

Once finalised, set up your policy and purchase the insurance. Be sure you understand the terms and conditions.

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Donnell Bailey

Property expert

Donnell is a property expert focusing on the property market, he looks at a combination of legislation, information from property managers, letting agents and market trends to produce information to help landlords.


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