As a landlord, your rental property is a financial investment that needs to be protected. If it is damaged, whether accidentally, deliberately or as a result of an adverse weather event, it could be costly to repair, particularly if it’s uninhabitable and you can’t house paying tenants for some time.

So it’s important to protect yourself by taking out specialist landlord insurance that covers you for the range of risks that come with rental properties. In this blog, we’ll cover everything you need to know about choosing the right landlord insurance to protect your property investment, including:

• What do most landlord insurance policies include?
• How to choose the best landlord insurance for you
• The factors to consider when making your choice  

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What do most landlord insurance policies include?

Most types of landlord policies include the following types of insurance:

• Buildings insurance: This covers damage from elements like burst pipes, subsidence and vandalism up to the full rebuild cost in case the property is destroyed.
• Accidental damage cover: This protects you against accidental damage to the building or contents by your tenants. Importantly, this is different from malicious or deliberate damage. 
• Property owners liability insurance: This protects you if a tenant, contractor or visitor injures themselves in your property and pursues you for compensation
• Legal expenses cover: This covers your legal expenses if you need to go to court to evict a tenant, claim damages, or pursue unpaid rent.

Then it’s wise to consider the following cover, which you may need to buy as an 'optional extra':

• Malicious damage and theft by tenants: This works the same as accidental damage cover. It’s included in some, but not all, landlord insurance policies. 
• Alternative accommodation: This covers you in case your tenants need to be rehoused while remedial works are carried out due to damage from an insured event.
• Loss of rent: This covers lost rental income if the property becomes uninhabitable due to an insured event.
• Rent protection (or tenant default insurance): If your tenant defaults, this will ensure you continue to receive your monthly rent, usually for up to 12 months.
• Contents insurance for furniture and appliances: If the property is furnished, this is a worthwhile addition to ensure anything you supply in your property is covered.
• Home emergency cover: This gives you access to a 24/7 team of trained contractors to deal with emergencies in your rental properties. 

It is also possible to get additional cover for:

• Glass and lock replacement
• Boiler repair or replacement
• ‘White goods’ appliance breakdown

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How to choose the best landlord insurance for you

To ensure you have the right level of cover for your particular property and type of let, speaking to an insurance broker or provider in person is advisable rather than simply choosing a policy online.

Here are some factors you should consider when looking at landlord insurance comparisons.

One or multiple rental properties 

If you have several properties, you should be able to reduce your costs and administration fees by taking out ‘portfolio’ or ‘multi-property’ insurance. This type of cover protects all of your rental properties on one policy. 

Have a look at our blog, ‘How does landlord insurance work when I have multiple properties?’, for more information.

Reliance on rental income

If you’re highly reliant on your rental income, for example, to pay your mortgage or for living expenses, you should strongly consider rent guarantee insurance. This type of insurance policy will usually continue to pay your rent if the tenant fails to pay. 

You can opt for a Rent Guaranteed service for even more income security and less hassle. With this option, you’ll receive your rent on time each month (even if the tenant pays late or misses a payment), giving you complete peace of mind. The rent management service will typically handle all aspects of rent collection, including chasing missed payments. 

The time you have available

Another factor that should influence your decision is the time you have available to manage your properties. If you’re tight on time, you might want to pay for a Rent Guaranteed service so that you don’t have to worry about chasing up tenants for rent payments. Or opt for home emergency cover so you can rest assured that any emergency in your rental property will be handled professionally and swiftly.

Unfurnished or furnished

If your rental property is part or fully furnished, landlord contents insurance is essential. This will protect any white goods, appliances, furniture or other items you supply to your tenants. You should ideally ensure this covers both accidental and malicious damage so that you’re fully protected.

Required insurance for your mortgage

Although landlord insurance is not a legal requirement, most buy-to-let mortgage lenders will require that you have building insurance in place when you exchange contracts.

HMO

If your property is let as an HMO, it’s important to know that not every insurer will provide cover, and your premium is likely to be higher than for a single let.

Unoccupied property

You’ll also need to consider if your property will be unoccupied for a significant time. Most insurance policies will only cover unoccupied properties for a set time (often 60 or 90 days). If your property will be unoccupied for longer than that, for example, due to renovations or a lack of tenants, you’ll need to pay for unoccupied property insurance. 

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Protect your rental properties with Lets Insure

Lets Insure offers a range of insurance policies designed to make landlords’ lives easier and less stressful. This includes rent guarantee insurance, home emergency cover and deposit replacement insurance. 

Rent guarantee insurance

Our rent guarantee insurance is a great option if you rely on your rental income. If your tenant fails to pay their rent, you’ll receive payments equivalent to the cost of the rent (up to a maximum of £2,500 per calendar month) until you gain legal vacant possession. We’ll also cover any legal costs associated with regaining possession.

Let’s Insure also offers a premium Rent Guaranteed service. With this rent management service, your rent will be paid on time each month, even if the tenant is late or misses a payment. Our team will handle every aspect of the rent collection process, and if any legal action needs to be taken, we’ll handle that as well.

Home emergency cover

Our home emergency cover gives you 24-hour access to an expert team of certified contractors. They’ll deal with any emergencies with your rental property, giving you complete peace of mind. 

Deposit replacement insurance

Although deposits are supposed to help landlords in the event of damage to their property, they’re limited to a 4- or 5-week deposit, which means any damage beyond that will not be covered. Deposit replacement insurance is an alternative to traditional deposits. 

The tenant will pay a non-refundable fee (approximately 1 week's rent) instead of a deposit. You’re then protected if there’s a disagreement about damages. If a settlement isn’t agreed on, we’ll pay out the equivalent of 6 or 12 weeks' rent, depending on the level of coverage selected. We’ll also cover all legal expenses (up to £50,000).

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