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
Choosing the right cover
The most important decision is matching cover to how the property is actually used. A single property let to a long-term tenant is a low-risk situation: buildings cover plus contents if it is furnished, and maybe rent guarantee if the income matters. An HMO with four or more tenants, by contrast, carries far higher tenant-turnover and damage risk, and both the premium and the range of cover you need reflect that. Business use, such as running a guesthouse from the property, requires a commercial policy rather than standard landlord cover.
Before you buy, read the exclusions carefully. Landlord policies commonly refuse to pay for gradual damage, wear and tear, and tenant belongings — so your tenant should have their own contents insurance, and you should budget separately for maintenance. Knowing what is excluded is as important as knowing what is covered, because a claim rejected for an excluded cause leaves you with the full bill.
Keeping your risk low
Landlords pay less when they can demonstrate they are looking after the property. Fitting smoke alarms, improving security, and increasing your excess to £250-£500 all attract discounts, and an annual renewal comparison across providers can cut costs by 20-40%. Just as importantly, staying on top of maintenance and keeping a paper trail of inspections and repairs makes any genuine claim smooth to settle and shows the insurer you are a responsible risk.
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. If your property becomes empty for more than 30 days, switch to unoccupied property insurance rather than assuming your existing cover still applies.