If you’re researching landlord insurance, it’s always good to know the average landlord insurance cost so you can be sure you’re getting a good deal. The price of landlord insurance depends on many variables and is typically more expensive than homeowners insurance. 

In this blog, we’ll cover what landlord insurance is, the average cost of landlord insurance, and the 10 key factors that will determine how much you will pay.

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What is landlord insurance?

Landlord insurance is an umbrella term that includes different insurance policies designed to protect landlords from the common risks associated with rental properties. It’s sometimes referred to as buy-to-let insurance. 

Standard landlord contents and building insurance policies cover the physical structure of the building and any items you supply for your tenants, such as white goods or furniture. 

However, you can also purchase optional add-ons or specialist insurance policies to protect you further. This includes protection from the loss of your rental income, cover for legal fees, protection from accidental and malicious damage by tenants, and support with home emergencies. The more your landlord insurance covers, the higher your premiums will likely be.

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What’s the average cost of landlord insurance?

The average cost of landlord building insurance (the most basic form of cover and the minimum required by mortgage lenders) starts from around £170. This is for a standard UK property with a £200,000 rebuild cost, the average in the UK.

However, the amount you pay will depend on many factors, including the rental property’s type, age, rebuild cost and more. Below, we’ll go over some of the key factors that will likely impact the price of your policy.

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Factors that will affect the cost of your landlord insurance

The price of your landlord insurance can vary depending on several factors. We’ll go over the 10 most important factors that will affect the cost of your landlord insurance so you can make an informed decision.

1. Type of property 

A key factor determining the annual premium of your landlord insurance is the type of rental property. According to 2024 research, semi-detached houses tend to have the cheapest premiums, followed by terraced or end-terraced houses, individual flats in a purpose-built block and detached houses. Individual flats in a converted building typically have the highest premiums. 

2. Age of the property 

The age of your rental property will also affect the cost of your insurance policy. A property built in the 19th century would cost around 20% more to insure than a similar property built in the 21st century. This is because older buildings typically cost more to repair or rebuild in the case of an incident, and they’re more prone to damage. Additionally, new buildings usually have higher security, safety and fire standards. 

3. Rebuild cost

Another factor that will significantly impact your insurance premiums is the rebuild cost of the building. The rebuild value is the amount it would cost to rebuild a property if it’s damaged beyond repair, which is different from the market value of a property (which will be much higher). Properties that would cost more to rebuild will typically have higher premiums because the insurance company will have to pay out more in the event of a claim. 

For a house with a rebuild cost of around £150,000 to rebuild, standard building insurance would cost approximately £137 per year. However, a house with a £1 million rebuild cost will have significantly higher yearly premiums (around £420) if all other factors are equal.

4. Policy coverage and add-ons  

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The cost of your landlord insurance policy will also depend on what’s included as standard in the policy and if you have added any optional extras. For example, you might choose to add on accidental damage, legal expenses, home emergency cover, or rent guarantee insurance to give you peace of mind. 

Here are some of the average costs of these add-ons according to 2024 data.

• Accidental damage to the building only: £299
• Legal expenses (up to a maximum of £50,000): £40
• Rent guarantee insurance: 46 to £100+ (depending on the amount of cover)
• Basic home emergency cover: £144

5. HMOs

Your landlord insurance might be higher if you rent out a home to multiple unrelated adults, especially if 3 or more adults live in the property. It might also be impacted by the type of tenants in the property, for example, if you rent to students rather than professional tenants. 

6. Unoccupied properties 

If there won’t be anyone living in the property for longer than the allowed unoccupied time (usually 60 or 90 days), you’ll need to pay extra for unoccupied property insurance. This ensures your policy doesn’t become invalid. 

7. Number of properties covered

You can opt for multi-property landlord insurance if you’re a landlord with multiple rental properties. This will make keeping track of the paperwork easier than having multiple separate policies for individual properties. Many insurance companies will also offer discounts or reduced rates on multiple properties, so the cost of adding a new property to your existing policy will likely be lower than if you were to open a new policy just for that property.

8. Location

The location of your rental property can also impact the cost of your insurance policy, for example, if it’s located in an area of high crime. 

9. Non-standard properties 

You’ll also pay more to insure rental properties that are categorised as non-standard. This might be because they have untraditional construction, are a listed property, or are at risk of flooding.

10. Monthly or annual payments

Some landlord insurance policies give you the option of one annual payment rather than paying monthly. Because this reduces admin costs, it can work out slightly cheaper. 

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Specialist landlord insurance by Lets Insure

Lets Insure offers a range of competitive insurance policies designed specifically for landlords, including rent guarantee insurance, home emergency cover and deposit replacement insurance. 

Rent guarantee insurance

This loss of rent insurance protects you against a loss of rental income if your tenants stop paying rent at any point in the tenancy. The cost of the tenant default cover is based on the monthly rent of the property, and prices start at £15.31 per month.

You’ll receive payments covering the cost of rent (up to a maximum of £2,500 per calendar month) from the date of the first missed payment to when you gain legal vacant possession. Additionally, you’ll receive 75% of the rent for 2 months after you have gained possession if the property cannot be re-let due to damage. 

Unlike other rent guarantee insurance policies, ours includes up to £75,000 to cover the legal costs associated with gaining possession of your rental property. 

Let’s Insure also offers a premium Rent Guaranteed service, which ensures you’re paid your rent on time each month and fully reduces the time you have to spend chasing late payments.

Home emergency cover

This cover gives you 24-hour access to an expert team of certified contractors who will resolve any emergencies in your rental property. This gives you peace of mind that any issues are dealt with as soon as possible to reduce further damage to your property and inconvenience to your tenants. 

This policy has a total claim limit of up to £1,000 per incident, and the price is £145.60 for 12 months of cover.

Deposit replacement insurance

This legal expenses policy is an alternative to tenant deposits. The tenant pays a small non-refundable fee (approximately 1 week's rent), which then insures you in the event of a disagreement about damages. 

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Our legal expenses cover policy is designed to protect you in the event of a dispute with a tenant over damages. This policy covers all legal expenses (up to £50,000), and if a settlement is not reached, the policy will pay out the equivalent of 6 or 12 weeks rent, depending on the level of cover selected.  

Pricing starts at £134.40 for 12 months cover (for the equivalent of 6 weeks rent indemnity). 

Visit our site to view our full range of landlord insurance policies. 

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