Landlord Insurance Guide

1. Why landlords need specialist insurance

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The properties you own are likely to be the most valuable possessions you have and letting them to tenants doesn't come without its dangers.

Tenants are generally viewed to be of higher risk than owner-occupiers and for this reason regular homeowner insurance policies are often invalid for tenanted homes.

Rental properties will require specialist landlord buildings and contents cover.

Landlords also need to consider other eventualities, e.g. if a tenant suffers an injury as a result of a fault in your property you could be liable. Tailored landlords insurance policies will protect you in the event of any such incident and should be considered before entering into any letting agreement.

2. Landlord buildings insurance

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Buildings insurance covers the cost of any damage to the structure of your home whilst it is rented out. Most mortgage lenders will require that you have buildings insurance in place.

Landlord buildings insurance policies cover you for damage caused by incidents such as:

• Storm or floods, fire, smoke, explosions, lightning or earthquakes.
• Escape of oil or water, frost damage to water, drainage or heating installations.
• Subsidence.
• Theft or attempted theft.
• Collision by vehicles, machinery or animals.
• Falling trees or branches.
• Malicious persons or vandals.

Important: coverage will differ between home insurers so check your policy documents.

3. Landlord contents insurance

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Landlord contents insurance covers the cost of any damage to contents owned by you the landlord. It also generally protects you in the event of a theft committed by the tenant.

Landlord contents insurance usually covers damage caused by events such as:

• Storm or floods, fire, explosion, lightning or earthquakes.
• Escape of water from a fixed water installation, drainage or heating installations.
• Theft or attempted theft.
• Damage by malicious persons.
• Falling trees or branches.
• Accidental breakage of mirror, glass, audio and audio visual equipment.

Important: Coverage will differ between insurance companies so check your policy documents.

4. Additional landlord insurances

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As a landlord you should also protect yourself against tenant related incidents. If a tenant refuses to pay rent or attempts to hold you liable for a personal injury, the insurances below will provide cover.

• Public Liability Insurance - This covers you if a tenant holds you liable for an injury caused by a fault in your property and includes your legal expenses and damages awarded to tenants.
• Legal cover - This will cover your expenses if you need to take your tenant to court.
• Rent guarantee - This will ensure you're still paid, even if your tenant defaults on the rent.