Feb 21, 2024

What is Landlord Insurance and What Does it Cover?

Renting out a residential property, whether it’s a house, flat, studio apartment or something quirkier, is a great way to generate additional income.

However, as with any investment, it also comes with risks. It’s always best to be prepared for all eventualities, which is why Landlord Insurance products have become increasingly popular over the years.

Understanding the various elements of Landlord Insurance and knowing how much cover you need is key to giving you that peace of mind that should the worst happen, you, your property and your income are covered.

Read on to find out everything you need to know about the different types of Landlord Insurance available and what they cover.


What is Landlord Insurance?

Landlord Insurance has been developed specifically for those renting out properties to tenants. Essentially it is cover that protects the interest of the landlord from the risks associated with their rental property.

It can go beyond the cover of standard buildings and contents insurance by not only covering the fabric of the building and contents within, but also protecting you from any claims made by your tenants.

Landlord Insurance can cover a wide array of external factors and unpredictable events including fire, flood, theft or vandalism. It can even cover you for a set period of time should your tenant fail to pay the agreed rent, ensuring your income is protected in the short term.


Types of Landlord Insurance

As with many insurance types, there is a wide range of Landlord Insurance policies to choose from. It’s important to fully assess the products on the market and analyse your own risk factors to ensure that you put the right protection in place to safeguard your assets.

If you have a mortgage on your property, it is likely that your provider will require you to implement buildings insurance as a minimum to cover the cost of rebuilding or clearing the property site if required.

There are six common types of Landlord Insurance available. The type you will require will depend on your individual circumstances.

Landlord Buildings Insurance

This is the most basic form of Landlord Insurance designed to cover the fabric of the building in a range of eventualities. It can cover the costs of rebuilding or repairing your property if it is damaged by events such as fire or vandalism, ensuring your property can be restored, ready for use and ready to continue to generate you income.

Landlord Contents Insurance

If you rent out a furnished property to tenants, you may want to ensure that you have insurance in place to cover items of furniture and white goods, from sofas and chairs to fridges and freezers. Contents insurance can give you peace of mind that repairs or replacements are covered if items within your property have been stolen, damaged or destroyed.

Property Owner’s Liability Insurance

When responsible for tenants within a property, it’s important to consider the worst-case scenarios when it comes to injury claims. Property owners’ liability insurance is similar to public liability insurance insofar as it covers you if you are liable for an injury to anyone which occurs at your property.

Fixtures and Fittings Insurance

As with any policy, you need to check the details to find out exactly what you are (and are not) covered for. Fixtures and fittings in your rental property, such as lights and switches, sockets and fans, through to bathroom suites, kitchens and flooring, are usually covered under your buildings insurance policy. If anything falls outside of this remit, you may want to consider additional Fixtures and Fittings Insurance.

Tenant Default Insurance

Your rental property is undoubtedly an important part of your income, which is why you might want to consider covering rental payments for a set period, should your tenant fail to pay. Tenant default insurance gives you that peace of mind that your rental income is covered in the event of non-payment for a specific period as agreed with your insurer.

Unoccupied Property Insurance

There are differing risks with occupied and unoccupied premises. If your rental property is likely to remain unoccupied for a significant period of time, it is worth speaking with your insurer about Unoccupied Property Insurance to be certain that you are covered in any eventuality.


Do I Need Landlord Insurance?

Landlord Insurance is not a legal requirement – but it does offer more comprehensive protection than standard contents insurance. In addition to protecting the fabric of the building, Landlord Insurance products can cover you for a range of purposes, from your property’s furniture and white goods through to your rental income, and more.

It’s important to be aware that standard home insurance will not cover rental activities. You need to speak to your insurer about the details of your unique situation to be confident you have the cover you want and need.

Your rental property is a valuable asset and source of income, and like any worthwhile investment it is important to make sure it is adequately protected to allow you to reap the rewards in the future, whatever life throws at you.

Whether you are looking to secure your first property for the rental market or you’re a seasoned landlord with an extensive portfolio, Henley Charles Landlord Insurance is your experienced partner in property protection.

From buildings insurance through to comprehensive coverage for your property, its contents and your rental income, our team can advise on the products to suit your exact needs.

Our friendly and knowledgeable team are available to help you understand the products available to allow you to decide which policy is right for you.

Get in contact today for a no-obligation discussion to find out how we can help solve your Landlord Insurance needs, or find out more about our landlord services.


Landlord Insurance Terminology

When choosing your Landlord Insurance products, you will be likely to encounter a range of different terminology. We have summarised the main terms to be aware of to support you in the search for the right cover for your rental property.

  • Insurance perils – These are the events or circumstances that can result in damage and subsequent insurance claims, for example floods, fires or vandalism.
  • Sum insured – The maximum amount of money your insurer will pay out on your policy.
  • Rebuild cost – This is the amount of money needed to rebuild your property entirely should any event warrant it.
  • Insurance excess – Your excess is the amount of money you must pay towards an insurance claim.
  • Policy exclusions – This refers to the items or circumstances your Landlord Insurance policy does not cover. It is important to thoroughly read through your list of policy exclusions to ensure you are covered adequately.
  • Disclosure – This refers to the complete and full revealing of information relevant to your policy. Both the insurer and the customer have a responsibility to accurately reveal necessary information in an insurance contract.