Landlord Insurance FAQs

What is landlord insurance?

Landlord liability insurance covers you for the risks associated with renting out your property. When you have tenants, you are likely to be responsible for any injury the tenant or their visitors receive because of some feature of your property. Even if you're careful, things can go wrong. For example, a tenant might trip and injure themselves on a loose floor tile. Any pay-out you might have to make is likely to be more than you can reasonably afford on your own.

What does landlord insurance cover?

Landlord liability insurance covers the main unforeseeable risks you take as a landlord, including legal fees and loss of rent. If an incident arises and your tenant is injured in your property, they might decide to take legal action against you. In this case, your landlord liability insurance will cover your legal fees, any damages awarded to the tenant and your tenant's legal fees if they win against you. Your policy should also cover any injuries to tradesmen working on the property.
Further to this, landlord liability insurance will cover you if a situation arises where you lose out on rent and need to house your tenants elsewhere. This could happen for a number of unexpected reasons, such as if your property is damaged by fire or water, so it makes sense to be prepared.

Do I need landlord insurance?

It's not a legal requirement to get landlord liability insurance, but it is highly recommended. If you're getting a mortgage on a buy-to- let property, be aware that many mortgage providers insist that you get landlord insurance before you can borrow from them. If you're renting out your own home after living in it yourself, you will need to inform your insurer that the building's circumstances have changed, or you won't be covered when the time comes.

Do I need landlord insurance and buildings insurance?

It's wise to equip yourself with both landlord insurance and buildings insurance when thinking about renting out a property. Most mortgage lenders will require you to have buildings insurance as standard when buying a property, and it will cover you in case of serious damage to your property, which could otherwise be very expensive. It's also highly recommended that you get landlord liability insurance as well, since many of the things you might have to claim for as a landlord are not covered by ordinary buildings insurance policies.

Do I need landlord insurance for a flat?

If the property you own is in a block of flats, it's possible that the freeholder will provide buildings insurance as a matter of course. However, this doesn't mean you're exempt from getting landlord liability insurance separately. Buildings insurance won't cover you for legal fees or compensation if your tenant has an injury, and it also won't provide loss-of- rent cover. It's therefore recommended that you take out a separate policy to cover you against those situations.

Do I need landlord insurance if renting to family?

It's common practice for landlords to rent properties to family members. Many people think that this means they don't need insurance. However, even if you're not worried about them filing legal claims against you, it's still recommended that you get landlord liability insurance, which would cover relocation costs in the case of extensive damage to the property through fire or flood and would also cover any claims made by tradesmen working in the property.

Do I need landlord insurance for lodgers?

Whilst you're not required to get landlord insurance if you take in a lodger, it's still recommended. You will have to tell your home insurance provider if you take in a lodger, and it could invalidate or change your policy. Remember, if you don't let your provider know and you later make a claim, it could be rejected. It's important that your lodger is factored into the policy you take out.

How much does landlord insurance cost?

There is no fixed cost for landlord liability insurance. Like any insurance policy, it will depend on you and your personal history. It can also vary depending on the size and nature of the property, along with the property's history. If you are interested in finding out exactly how much landlord insurance will cost you, get a quote from us today.