Landlord Insurance

As a landlord, your income depends on your property. Therefore, it is important that you take out an insurance policy to make sure that you won’t be out of pocket if something unfortunate should happen to damage your property or its contents, such as a flood or a burglary.

The Value of Landlord Insurance

Unlike car insurance, landlord insurance is not a legal requirement. However, it is certainly worthwhile taking out as your property or properties are not only major sources of income, but you have a lot of money tied up in these assets and it is important that you protect your investment.

Although we don’t like to think about it, sometimes things do go wrong. Landlord insurance helps financially protect you, should anything unfortunate happen to your property or its content.

For the most part, this type of insurance works in a similar way to home insurance. However, it can also provide you with a number of additional benefits that are specifically tailored to rental properties. These include financial support should any accidenfToptal damage be made to the property by your tenants or their visitors and financial support if one or more of your tenants refuse to pay their rent.

Types of Landlord Insurance

There is a variety of different landlord insurance policies available, below we have outlined some of the main policy types available and what they cover:

  • Landlord buildings insurance: this type of insurance covers any damage made to the physical structure, such as flood or fire damage. If you need to get your property repaired or, if you are very unlucky, rebuilt, this type of insurance will cover the costs.
  • Landlord contents insurance: this is one of the most important policies a landlord can take out. Especially, if the property is furnished. This covers any losses incurred due to theft or damage to your contents. It is important to remember that this does not cover your tenant’s property, so it is important that you urge them to take out their own contents insurance.
  • Landlord liability insurance: as the number of personal injury claims made increases every year, this type of insurance has become incredibly important. Landlord liability insurance will cover you if one of your tenants or a visitor is injured at the property and you are held responsible for the accident.
  • Rent guarantee insurance: this is a popular type of insurance as unfortunately a third of UK landlords encounter difficulties receiving rent form their tenants. This type of insurance will protect you from loss of income should your tenants be unreliable with their rent. It can also cover you rental income between tenancies. To get rent guarantee insurance, you are required to conduct full credit-checks on your tenants before they move into the property.

When you are taking out landlord insurance, you may also wish to purchase one or more insurance add-ons, such as:

  • Legal expenses cover: this is an important type of cover that protects you from incurring financial losses should you need to take legal action, such as dealing with disputes with your tenants or evicting squatters from you property. This type of insurance doesn’t tend to be too expensive as it usually only costs £50 a year.
  • Home emergency cover: this is not usually included as standard, but is a useful add-on. This type of cover financially covers any emergency repairs that need to be carried out immediately by a qualified tradesman, such as a burst pipe or a pest infestation. While it is always great to know that there is a qualified tradesman at hand all-day, every day of the year, understandably, this type of cover can be quite expensive.
  • Accidental cover: this is not often included as a standard, but it is often worth considering as accidents do happen, such as an inebriated tenant knocking red wine all over a new, beige carpet.

Where to buy landlord insurance

Fortunately, there are a range of companies that offer landlord insurance and most of the time such policies can be purchased over the phone or on the internet. It is recommended that you use a price comparison website to find the best provider as comparison sites not only allow you to compare prices, but they can also let you compare the different levels of cover different companies provide.

Useful tips

  • While for your residential property it is important that you take out both contents and buildings insurance, this may not be the case for a rented property. If you are renting out the property unfurnished, contents insurance is unnecessary. In addition, you may find that white goods are covered under your buildings cover. So be sure to check out your buildings insurance policy before blindly buying a contents policy.

  • Always make sure that you know what the policy does and does not cover, this will prevent any nasty surprises later on. Similarly, make sure that you take a note of any excess fees you may have to pay.

  • Shop around for the best deal. Take full advantage of price comparison websites and visit local providers to get more personalised advice on what insurance policy is best for your situation

Top Providers

Directline: this is a popular choice for landlord insurance as over 180,000 have purchased policies from them. They offer a high level of standard cover that includes accidental damage to your property and offers new for old replacements should any of your content get damaged.

Aviva: this is another common choice for landlords. They provide buildings insurance, contents insurance and a combined insurance which offers building and contents insurance at a discounted price.

NatWest: this company offer a range of insurance policies and have a dedicated, free 24 hour helpline to offer assistance when you need it most.

Provider Contents Cover Buildings Cover Rent Guarantee cover Accidental Damage Cover (buildings) Accidental Damage Cover (contents)
Directline Up to £2,000,000 Up to £250,000 No Yes Yes
Nationwide Up to £10,000,000 Unlimited No Yes Yes
Insure my Let Property Up to £1,000,000 Up to £50,000 Yes Yes Yes
NatWest Up to £1,000,000 Up to £50,000 No No No
Endsleigh Up to £1,000,000 Up to £60,000 No Yes Yes
Moreth>n Up to £2,500,000 Up to £10,000 No Yes No