Do You Need Landlord Insurance?

If you are a landlord or thinking about becoming a landlord, there are 101 things to think about. Should landlord insurance be on your list?

Landlord and his property tenants

Whilst there is no legal obligation for a landlord to take out landlord insurance, you might find that you need it to take on tenants. That’s because your mortgage lender may insist that you take it out, as a conventional home insurance policy doesn’t offer appropriate cover for rental activities.

That’s not the only reason why you should take out landlord insurance though. If you want to safeguard your financial future and protect your investment, it should be at the top of your list of landlord admin.

What does landlord insurance cover?

Landlord is designed to provide protection against the unfortunate eventualities that you put yourself at risk of when you become a landlord and rent out your buy-to-let investment. It covers everything from property owners’ liability insurance, contents insurance and buy-to-let buildings cover.

Every landlord insurance policy will probably be a little different, as you can tailor them to exactly what you want and need. Commonly, you can expect to find cover:

  • Loss of rent
  • Accidental damage
  • Fire, lightening and explosions
  • Fixtures and fittings
  • Malicious damage
  • Unoccupied properties
  • Legal expenses
  • Rehousing costs if a tenant cannot stay in the property due to an insured event (i.e. fire or flood)

It is important to be aware of and make clear to your tenants that landlord insurance will not cover your tenant’s belongings. If you have landlord contents insurance, it will only cover your contents, such as any furniture and appliances that you choose to supply as part of the tenancy.

If your tenant is worried about their belongings being damaged, they can look into tenants’ insurance, as this can cover against these eventualities.

Is landlord insurance expensive?

It’s hard to give an average cost for landlord insurance. As we mentioned before, every policy will be slightly different, meaning that so will the insurance policy premiums. The amount you pay for your landlord insurance will depend on the type of cover/s you have chosen, the amount of cover you need and the rebuild or replacement value or your property and the items within it. The higher these values are, the more your premiums are likely to be.

It’s a good idea to contact a landlord insurance broker and provide them with accurate and detailed information about your property and tenancy. They will help you compare landlord insurance policies and find the right policy for you.

Remember, landlord insurance is designed to protect you, your property and your tenants. It’s not a step worth skipping. If your property or tenants are put at risk, or you end up facing legal charges in the future, you’ll be extremely glad you took out your policy and took the time to protect yourself.


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