Having the correct insurance in place is essential if you're a landlord. However, with so many options for landlord insurance, it can be challenging to know where to start, especially when you don’t know what a standard insurance policy should cover.

The insurance experts at Lets Protect have put together this guide with everything you need to know about what landlord insurance typically does and doesn’t cover. 

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What is landlord insurance?

Landlord insurance is an insurance policy designed to protect rental properties and mitigate the usual risks of property rental. Sometimes, it’s called buy-to-let insurance. 

Standard policies are included in most landlord insurance agreements, but you can also add additional policies to increase your protection. 

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Standard landlord insurance: what does it cover?

When choosing your landlord insurance policy, you must understand what should be included as standard and what should be available as an added extra. This will help you choose the right landlord insurance for you and your rental property. 

Most landlord insurance policies include landlord building insurance, contents insurance, and liability cover. This will protect you in the event of:

• Theft, fire, subsidence, burst pipe or flooding damage to your property’s structure and built-in elements.
• Theft or damage to landlord-owned furnishings, appliances and white goods. 
• A claim made against you due to an injury caused by your property.

However, you won't be protected against typical wear and tear, malicious or accidental damage. 

What does landlord insurance not cover?

There are many landlord insurance policies that are not included as standard, and you’ll likely have to pay extra for them. However, this does not mean that you should not consider if you require these added extras to give you additional protection and peace of mind.

Here are some policies that are not typically included in a standard landlord insurance agreement:

• Legal expenses cover. This is sometimes included with public liability insurance and ensures your legal costs are covered if you have to go to court to pursue unpaid rent or other issues connected to your rental property. 
• Accidental damage insurance. This can often be added to your contents or building insurance. This insurance will cover repairing or replacing any items in your property that your tenants accidentally damaged.
• Malicious damage insurance. This is similar to accidental damage insurance, but it covers you if any of your items are damaged or destroyed intentionally by your tenants. 
• Unoccupied property insurance. If your property will be empty for over 60 days, you might need to opt for a specialist policy to cover it while it’s vacant. 
• Rent guarantee insurance (also called tenant default insurance). This insurance will ensure that you’re paid on time each month, even if your tenant pays late or fails to pay all entirely. 
• Home emergency cover. This gives you access to a repair service in case of an emergency in your rental property, so you don’t have to deal with it yourself.  

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Does landlord insurance cover tenant damage?

Although damage caused by theft, fire, flooding, and subsidence is typically covered as part of landlord contents and building insurance, accidental or malicious damage is often an added extra. You’ll need to carefully check the wording of any potential insurance policy to see what’s included and ensure you’re fully covered.

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Does landlord insurance cover boiler replacement?

Another common question is whether boiler cover is typically included in landlord insurance policies. Boiler replacement and repair are often included in home emergency cover, which is available as an extra in many insurance policies or can be purchased separately. 

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Does landlord insurance cover rent arrears?

Protection against rent arrears is included in rent guarantee insurance. This can be purchased separately or added to your more comprehensive landlord insurance policy. 

Rent guarantee or tenant default insurance will cover you if your tenants can’t or refuse to make rent payments and end up in arrears. This is essential if you depend on your monthly rent to pay your buy-to-let mortgage or need it for living expenses, as you’re guaranteed to receive that vital income.

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Specialist Landlord Insurance by Lets Insure

Although a standard landlord insurance policy helps to protect your rental property, it does not offer the required level of protection for most landlords. 

Lets Insure offers a range of specialist insurances designed to offer enhanced protection and peace of mind for landlords. We offer rent guarantee insurance, home emergency cover and deposit replacement insurance.

Rent guarantee insurance

Our rent guarantee insurance will pay you up to a maximum amount of £2,500 per calendar month from the date the tenant first falls into arrears until you gain legal vacant possession. This means you don’t need to stress about the financial repercussions of rent arrears.

Lets Insure also offers a premium Rent Guaranteed service, which ensures you’re paid your rent on time each month regardless of whether your tenant pays on time. This option is best if you depend on your rental payments and want complete income protection. 

Home emergency cover

Our home emergency cover protects you against many emergencies, from boiler breakdowns and problems with the central heating system to roof damage. You’ll have 24-hour access to a professional team of certified contractors who will resolve any emergencies quickly to reduce disruption to you and your tenants. 

Deposit replacement insurance

Your tenant will pay us a non-refundable fee (approximately one week’s rent) instead of a typical deposit. This payment will protect you if there’s a dispute about damage to the property. We’ll cover legal costs of up to £50,000. If a settlement can’t be reached, this policy will pay 6 or 12 weeks of rent, depending on the level of cover you’ve chosen.

Visit our site to view our full range of landlord insurance policies that can give you comprehensive protection for your rental property. 

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