What type of insurance do I need as a landlord?
The type of landlord insurance you need depends on factors such as the value of your property, your rental income, and your specific needs
The best type of landlord insurance for you is one that best matches your needs. You will find that a range of different cover options are often offered under one policy.
Sometimes, the basics are included as standard, but if you take additional cover options that are not included, for example malicious damage by tenants or their guests, you will usually expect to pay more.
At Total Landlord, we are a little different to most. We include more of the options that we consider to be ‘essential protection’ within our standard cover, rather than including those as add-ons with extra premiums.
As a property owner, you are more likely to need some of these cover options than others; it’s a case of weighing up the risks and making an informed decision.
This can be quite daunting, but it is so important to choose the right cover for your situation, and if this means investing some time considering your options, we can promise you from experience that it’s time and effort well spent.
But how do you decide which options you are most likely to need?
What follows is a description of the most common options for you to consider, with some key detail, who the types of cover would benefit most and links to further information should you want to know more:
Building insurance for rented properties is a component of a landlord insurance package. Standard buildings insurance covers structural damage to the building caused by fire, flood and storm damage.
As with home insurance policies, a mortgage lender will insist that building insurance cover is in place before finalising the mortgage. When it comes to landlord building insurance, landlord insurance policies can differ dramatically as to what is included as standard, so it’s sensible to shop around. Some, like Total Landlord's Premier policy will include theft, accidental damage or malicious damage by tenants and their guests as part of the package, while others may not.
Some insurance providers will often exclude damage caused by tenants or persons legally on the premises or offer these benefits at extra cost.
When weighing up the risks, it is worth remembering that, as a landlord, when it comes down to it you are handing over a very expensive asset to a stranger. Knowing you are covered for damage, be it by theft, accident or malice, is likely to bring you greater peace of mind.
Something else to look out for under landlords’ buildings insurance is whether the policy offers cover between tenancies and if so for how long. Some policies will restrict their cover after 30 days for an unoccupied property, whereas Total Landlord’s Premier policy offers full cover between tenancies for up to 90 days as standard.
This additional length of time could make a substantial difference to your finances if your property is vacant for a period between tenancies, for example if you have a student property.
We know that checking precisely what cover is included under buildings insurance when taking out a landlord insurance policy can be time-consuming, and you may well have a little extra added to your premium.
But it is always time and money well spent, not just for your peace of mind but also if you need to rely on a specific extra cover that you don’t have, which could leave you substantially out of pocket.
Escape of water: Over a third of all claims paid out between 2019 and 2023 were for escape of water. ‘Escape of water’ refers to water damage caused by leaking pipes or fixed water tanks, baths, sinks or toilets, or a leaking dishwasher or washing machine.
It has been our top peril (most common claim) for the last decade and escape of water claims are the third highest paid claims to date, with an average claim amount of £2,596, so we’d highly recommend making sure you’re covered for it. Read our guide to avoiding burst pipes for more information.
Basically, anybody that rents out their property needs buildings insurance. Look at the optional extras and weigh up the additional cost on the premium compared to the cost to remedy and the possibility of something happening in the property, based on your tenant type and the type of property.
Building insurance covers the structure of the property and the fixtures and fittings, which are owned by the landlord, not the tenant. So as the landlord, you are responsible for providing building insurance and protecting your investment.
Landlord contents insurance is cover you might take out to cover the cost of repairing or replacing those items that you, as the landlord, have provided for the use of the tenant for the duration of the tenancy.
This cover is not essential, but basic contents insurance should cover accidental damage to glass and sanitary fittings as these would be expensive to replace. If you let your property as ‘furnished’, and supply furniture for example, as you’d expect your contents limit will inevitably be higher than if you let it ‘unfurnished’ so your premium will increase. A more comprehensive, all-inclusive contents cover will include malicious damage, theft and extend to gardening equipment.
Top tip: It is important to recognise that your landlord contents insurance does not cover the tenant’s possessions that they bring into the property. They should be reminded that it is their responsibility to take out their own contents insurance to cover their own belongings.
In asking yourself ‘Do I need contents insurance as a landlord?’, the decision should be made by assessing the risk involved with the age and cost of your contents in the property and how much it would cost to replace them. For furnished or part-furnished properties it is a must.
Yes
No
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Loss of rent cover allows you to meet monthly payments or revenue expectations if your property becomes non-tenantable (meaning it would be uninhabitable for your tenants), following a valid insurance claim.
This might be because of fire or flood in the property that requires your tenant to temporarily move out while the issue is dealt with. Some loss of rent policies will pay for the tenant’s alternative accommodation, so if this is important to you, it is worth looking out for when taking out cover. This cover may be included as standard if you are considering a more comprehensive policy like the one offered by Total Landlord’s Premier policy.
Loss of rent may benefit every landlord. But if you are paying a mortgage on your rental property or rely on the rent as a primary source of income, loss of rent cover is a sensible addition to consider adding to your landlord insurance.
Some buildings and contents insurance policies have accidental damage included as standard, offering varying degrees of cover, as is the case under the buildings component of Total Landlord’s Premier policy. Note that accidental damage to contents is not covered.
Example: A foot through the ceiling scenario would be covered by your buildings insurance, while a contents insurance policy would help you deal with the resulting damage to the carpet. If not included as standard, accidental damage cover can be added, with a small increase in the premium.
Ideally your policy will already include this cover, saving you both weighing up whether to add it to your policy or not and any cost involved should such an incident occur. Your tenant may even have their own tenant damage insurance as it can help safeguard their deposit.
Read our ultimate guide to accidental damage for landlords here.
The difference between ‘accidental damage’ and ‘malicious damage’ is that accidental damage is not a deliberate action. Malicious damage is caused on purpose with intent to do harm. It includes things like kicking holes in the walls and smashing windows.
This is an essential feature of any landlord insurance policy, as it offers protection if a tenant or visitor is injured on your property. Depending on the type of property you have and who you let it to, liability insurance may even be mandatory.
If it is not included as a standard part of your landlord insurance, liability cover is definitely worth considering as a standalone product or as an extra. Total Landlord’s Premier policy includes property owners’ liability as standard.
Legal disputes such as criminal damage or contract disputes are uncommon, but when they do occur, they can be enormously stressful and extremely expensive. Should you end up embroiled in a dispute you will be grateful for having this cover as standard, so it’s worth looking out for. This is included in our Premier policy only.
As well as considering what types of landlord insurance you need, at Total Landlord we offer tailored landlord insurance cover depending on what type of landlord you are. Whether you’re a private landlord, a portfolio landlord, an HMO or student landlord, an expat landlord or a commercial landlord, we’ve got you covered.
If you rent out a property on a residential assured shorthold tenancy agreement that you have full control over, then you’re a private landlord. Landlord insurance will provide cover for risks associated with a buy to let property. Find out more about our private landlord insurance policies.
If you rent out a portfolio of properties, you might wonder whether you need multiple landlord insurance policies to cover all your properties.
At Total Landlord, we offer a multi-property insurance policy, providing a convenient and cost-effective solution for safeguarding your portfolio under one, single policy.
If you are a landlord with a rental portfolio, you can insure up to 50 properties online with Total Landlord Insurance or alternatively call the team on 0333 251 2313 to discuss your requirements. Find out more about our portfolio landlord insurance policies.
HMO landlord insurance is a type of insurance which is tailored to provide specialist cover for landlords who are letting an HMO, often to multiple tenants from different households.
Specific requirements and different risks can apply to HMOs, which may not be covered by a standard landlord insurance policy. Our HMO landlord insurance is specifically designed to meet the unique needs of HMO landlords.
Who you are renting to is critical in deciding what landlord insurance you need to protect your property, as the perceived risk of damage will be higher for example if you rent to a household of students or unrelated tenants compared to say, a professional couple.
Insuring your rental property with a dedicated landlord policy is essential, no matter who your tenants are. But what special considerations do HMO and student landlords need to be aware of?
Firstly, it’s important to check whether landlord insurance premiums increase for student or HMO tenants. Though we don’t increase your premium or reduce your cover at Total Landlord, a number of insurers do this as a matter of course, so it’s worth checking.
Secondly, if you’re renting to students, it’s a good idea to find out whether the length of the ‘unoccupancy period’ will cover the property being empty over the summer, and if that is the case, whether you are still charging rent or not. For student landlords, ‘unoccupancy periods’ of up to 90 days (which we offer as standard) are preferable to those policies which only cover up to 30 days. Find out more about our HMO and student landlord insurance.
As a landlord, you might need to manage your UK rental property from abroad, for example if you’re working or living overseas. Whether you are a permanent expat landlord or just based abroad temporarily, protecting your investment and your tenants by having overseas, or expat landlord insurance is vital.
Whether your commercial property is an office, shop or block of flats, we will source a commercial building insurance policy so that you can relax in the knowledge that you are comprehensively covered should the worst happen. This leaves you to concentrate on getting the most out of your investment. Find out more about our commercial landlord insurance.
