Landlord Insurance

Insurance created specifically for landlords is available from a range of suppliers to ensure that you are protected against the unique type of risks you may find yourself open to.

What is Landlord Insurance?

Also known as buy-to-let insurance, landlord insurance is designed to cover the costs specific to your position as a landlord; owning the building, some of the contents, and having a tenant stay within your property under the terms of an AST (Assured Shorthold Tenancy). Unlike car insurance, having landlord insurance is not mandatory. However, standard buildings and contents insurance policies may not cover you in the event of a claim. If you have a mortgage against the rental property, your lender may specify that landlord specific insurance is required. Your tenant will have given you a security deposit (typically the equivalent of 5 weeks rent), which will cover any damage to your building or inventory items up to that value. However, over and above that, you will not be able to recover; you are able to insure that additional risk.

Types of Landlord Insurance

As a landlord, the types of insurance you should be looking at (some of which can be combined within one or many policies) are…

Accidental Damage

When a tenant causes damage over and above their security deposit value, or perhaps if you’re making repairs to the building or items you have within the property.

Emergency​

In the case of gas leaks, flooding etc., you may be faced with large repair bills – consider insuring against these cases as part of your landlord’s insurance package.

Legal Expenses

Landlords face a different set of responsibilities compared to a regular homeowner, and facing any legal challenges (such as evicting tenants) could prove quite costly. You can cover legal expenses with a part of your insurance package with many of the providers.

Rental Arrears Protection

In the case of a tenant not paying you rent under the terms of their AST, you will be covered for a specific period as you go through the process of evicting them from your property. Pay particular attention to the details of the different policies; some cover you for different amounts and only begin payment after a certain period of non-payment of rental (for example, 6 months).

As with all insurance packages, be sure to read the detail. You’ll find a better deal if you purchase all the options you require within one policy, but read the specifics of what you are covered for and ensure the coverage is suitable for your needs and situation.