If you rent out a property, standard home insurance won’t cover you. Landlord insurance is specifically designed for rental properties.
The Difference
| What It Covers | Home Insurance | Landlord Insurance |
|---|---|---|
| Owner-occupied | Yes | No |
| Rental income loss | No | Yes |
| Tenant damage | No | Yes |
| Legal expenses (eviction) | No | Yes |
| Liability to tenants | No | Yes |
| Unoccupied property | Limited | Extended |
| Contents (if furnished) | Personal only | Tenant-focused |
Types of Landlord Insurance
Buildings Cover
Required if you have a mortgage. Covers the structure:
- Fire, flood, storm
- Subsidence
- Escape of water
- Tenant damage (sometimes limited)
- Vandalism
Contents Cover
Optional, needed for furnished rentals:
- Furniture
- White goods
- Flooring
- Curtains and blinds
Rent Guarantee Insurance
Pays your rent if the tenant stops paying:
| Cover | What It Does |
|---|---|
| Rent protection | Covers lost rent for 6-12 months |
| Legal cover | Covers eviction legal costs |
| When it kicks in | After tenant misses payment |
Costs about 5-10% of monthly rent.
Liability Cover
Protects you if a tenant or visitor is injured or their property is damaged.
Common Exclusions
| Exclusion | What to Do |
|---|---|
| Tenant’s own belongings | They need contents insurance |
| General wear and tear | Budget for maintenance separately |
| Gradual damage | Fix issues promptly |
| Unoccupied beyond 30-60 days | Buy unoccupied property insurance |
| Business use | Commercial policy needed |
Unoccupied Property Insurance
If the property is empty for 30+ days:
- Standard landlord insurance won’t cover it
- Buy specific unoccupied property insurance
- Usually limited to 12 months
- Typically requires monthly inspections
Costs
| Property Type | Buildings Annual Cost |
|---|---|
| 1-bed flat | £150-£250 |
| 2-bed house | £200-£350 |
| 3-bed house | £250-£450 |
| 4-bed HMO | £400-£700 |
Adding contents: +£50-£100/year Adding rent guarantee: +10% of annual premium
How to Save
| Tip | Saving |
|---|---|
| Increase excess to £250-£500 | 10-15% |
| Install smoke alarms + security | 5-10% |
| Pay annually | 10-20% |
| Bundle multiple properties | 10-20% per property |
| Shop around at renewal | 20-40% |
What to Do When You Need to Claim
- Mitigate damage — Stop the problem getting worse
- Document everything — Photos, videos, receipts
- Contact insurer ASAP — Most have time limits
- Get quotes for repairs — Before authorising work
- Communicate with tenants — Manage expectations
Bottom Line
Landlord insurance is not optional if you have a buy-to-let mortgage. Even without a mortgage, the liability and rental income protection make it essential. Don’t use standard home insurance — it won’t pay out for tenant-related claims. Rent guarantee cover is worth adding for extra peace of mind.