Do I need Landlord Insurance?

Landlord insurance is a definite consideration for anyone renting out their investment property.

Even with the best-intentioned tenants, everything may not go all that well throughout the tenancy.

You may have accidental flooding and failed rent payments, the right cover would provide a peace of mind.

There are many types of landlord insurance. So do some research and try to find a combination of different insurances. You will find some tailored to fit your individual landlord needs.

Your responsibilities as a tenant

3 Main Landlord Insurance Tips

  1. Landlords need insurance specifically designed for landlords – a standard home policy is highly unlikely to be sufficient
  2. Your insurer must be notified every time a tenancy change takes place. Otherwise, claims may be void
  3. Many insurers will offer discounts if you buy landlord building and contents insurance together

Tenant Rights

Landlord Building Insurance

Banks and building societies are likely to insist on buildings insurance as a condition of a mortgage. This is pretty much the norm.

Even if you own your rented property outright, buildings insurance is likely to be the most basic cover you’ll want for such a valuable asset.

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Landlord Building Insurance Cover

The right landlord building insurance will cover the cost of rebuilding or repairing your property following events such as:

  • Storm, floods, lightning or earthquakes
  • Subsidence
  • Escape of water, drainage or heating installations
  • Collision by vehicles, machinery or animals
  • Falling trees or branches
  • Vandalism or other malicious acts
Landlord Buildings insurance often covers malicious damage by tenants. In some cases, also glass, lock and key replacement as standard, check your policy to find out where you stand.
For the correct quote of buildings insurance, you need to provide the cost of rebuilding your home. This is not the same as the market value property or how much you paid for it. You can use the rebuild calculator supplied by the Building Cost Information Service (BCIS), commissioned by the Association of British Insurers.

Landlord Insurance Loss of Rent

Loss of Rent Landlord Insurance covers income lost if your property becomes uninhabitable and your tenants are forced to move out while another claim is honoured.

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Landlord Contents Insurance Only

The level of contents insurance you need is largely dependent on whether you’re renting your property furnished or unfurnished. In both cases, you should still consider taking out a Landlord Contents Insurance:

  • If your property is unfurnished, you’ll still need to consider cover for white goods, carpets, curtains and blinds. You should note that some building insurance policies include a level of contents insurance as standard to cover basic items such as carpets and white goods.
  • If your rental property’s furnished, you’ll need to think about the cover for furniture, electrical items, pictures and personal items. It is your tenant`s responsibility to ensure their own contents.

The amount you’ll pay for landlord contents cover will depend on the location of the property and the type of tenants in it.

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Accidental Damage Insurance for Landlords

Accidental damage is usually included as part of a building or contents insurance policy. It should cover damage not caused by negligence, recklessness or misuse.

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Landlord Emergency Cover Insurance

Landlord emergency cover could help in the event of a crisis such as a boiler breakdown, burst pipes, lost keys and many other types of emergencies.

Some policies will cover the cost of alternative accommodation for your tenants if the problem makes the property inhabitable.

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Landlord Liability Insurance

Landlord Liability Insurance could cover you in the event of the injury or death of any individuals on your property. It also protects you against tenants who may try to sue you following an accident.

You might also want to consider employer`s liability insurance, which offers protection in the event of the death or injury of any person you employ on a casual basis at your property, such as a cleaner, handyman or gardener.

A good landlord policy would include Landlord Liability Insurance.

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Landlord Rent Guarantee Insurance

Landlord rent guarantee insurance is not a loss of rent insurance. It cover offers compensation for the landlord if tenants default on their rent payments. Payments are capped at a certain level and for an agreed period.

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Legal Expenses Insurance

Legal expenses insurance is designed to cover the costs incurred by landlords. This works if they have to take legal action in court, for example. Also, it will help to deal with specific issues. For example, disputes with tenants, evicting squatters, repossessing property, and defence against any criminal activity.

This type of policy can also cover the costs of recovering outstanding rent owed by tenants.

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Unoccupied Property Insurance

Most insurance providers regard a property as being unoccupied if no-one has lived there for 30 consecutive days. And at that point standard insurance becomes invalid. This is because an empty property is more of an insurance risk due to burglary, vandalism, and weather-related damage.

So if your property is going to be empty for over 30 days, take precautions. For example, arrange a specialist unoccupied property insurance policy. This ensures that your property is still adequately covered.

West London Property Networking

Please contact Pelin Martin to book a 30-minute free property consultation on 0208 994 7327 or email