What insurance do I need as a landlord in the UK?

What is landlord insurance?

Landlord insurance is a type of insurance designed to protect those who rent out their properties.

Unlike standard home insurance, landlord insurance is tailored to the unique risks associated with renting a property. Depending on the policy you have, it can help cover things like damage to the building, claims made by tenants, loss of rental income, and costs associated with unexpected emergencies.

The exact cover included will vary between providers, so it's important to check what's included and whether any optional extras are available. HomeServe, for instance, offers a range of landlord cover designed to help you and your tenants get back up and running when there's a plumbing, heating or electrical problem at your property.

Why is landlord insurance important?

It’s important to note that landlord insurance isn't a legal requirement in the UK. However, it's generally considered an important safeguard for anyone renting out a property.

If you have a buy-to-let mortgage, your lender may also require you to have certain insurance in place, particularly buildings insurance, as a condition of the loan.

Even if it's not a compulsory requirement, landlord insurance can help protect you financially if something goes wrong. Whether it's damage caused by a storm, a burst pipe, a claim from a tenant, or a period where your property becomes uninhabitable, having the right insurance in place can provide valuable peace of mind.

As a landlord, you're responsible for maintaining your property and ensuring it's safe for tenants. Insurance can provide a financial safety net when unexpected situations arise.

What insurance do I need as a landlord in the UK?

While landlords aren't legally required to have insurance, most choose to take out a combination of policies to protect themselves, their property, and their tenants.

Understanding what type of landlord insurance you need starts with knowing what each policy covers and whether it's essential or optional.

Buildings and contents insurance

Buildings insurance covers the physical structure of your property, including walls, roofs, floors, and permanent fixtures. If your property is damaged by events such as fire, flooding, or storms, building insurance can help cover repair costs.

Contents insurance covers items you own within the property, such as carpets, furniture, and appliances, provided for tenants.

For most landlords, building insurance is considered an essential form of protection, as it helps to safeguard one of their biggest financial investments.

Property owners' liability

Property owners' liability insurance helps protect you if someone is injured or their belongings are damaged as a result of an issue with your property.

For example, if a tenant suffers an injury because of a fault in the property and decides to make a claim against you, property owners' liability insurance can help cover legal costs and compensation payments.

This is another essential protection for landlords, particularly those with tenants living in their properties full-time.

Home emergency cover

Home emergency cover is designed to help with unexpected issues, such as boiler breakdowns, leaks, electrical faults, or blocked drains. Without cover, emergency call-outs to fix these issues can sometimes be costly and time-consuming to arrange.

While home emergency cover isn't considered an essential insurance policy, it can help reduce hassle and provide peace of mind when something goes wrong. HomeServe's Landlord Home Emergency cover can provide access to qualified engineers who can help resolve those unexpected plumbing, heating and electrical problems.

Accidental damage insurance

Accidental damage insurance covers damage caused by unexpected incidents rather than wear and tear.

Examples might include a tenant accidentally damaging a kitchen worktop, breaking a window, or damaging fixtures and fittings within the property.

While not essential, some landlords choose accidental damage cover to help protect against repair costs that may not be covered by standard buildings or contents insurance.

Unoccupied property insurance

There may be times when your rental property is empty between tenants or undergoing refurbishment.

Many standard insurance policies have restrictions on how long a property can remain unoccupied before cover is affected. Unoccupied property insurance can provide additional protection during these periods.

This type of cover may be worth considering if your property is likely to be vacant for extended periods.

Loss of rent cover

Loss of rent cover helps protect your rental income if your property becomes uninhabitable due to an insured event, such as a fire or flood.

If tenants are unable to live in the property while repairs are carried out, this type of cover can help compensate for the rental income you would otherwise lose.

Some landlords choose to include loss of rent cover to help reduce the financial impact of unexpected events affecting their property.

Protect your rental property with HomeServe Landlord cover

Managing a rental property comes with plenty of responsibilities, and unexpected home emergencies can add extra pressure you just don’t need.

Whether it's a blocked drain, a heating issue or an electrical fault, HomeServe can provide reliable support when you need it most. Explore our range of Landlord Home Emergency Cover options to find the right level of protection for your property.