If you’re a landlord or thinking of becoming one, you might wonder what landlord insurance is and if it’s an essential requirement. This insurance is designed to protect landlords against common risks. It includes a range of specialist insurances, such as landlord building insurance, rent protection insurance, and liability insurance. 

Read our detailed guide for all the information you need to know about landlord insurance. This guide includes:

• What is landlord’s insurance?
• Types of landlord insurance 
• Is landlord insurance mandatory?
• Do I need landlord insurance?

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What is landlord insurance?

Landlord insurance protects landlords from the risks of renting properties, such as damage, loss of rental income or legal liability. This makes it different from home insurance, which is designed for homeowners - this insurance is tailored specifically to landlords.

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Types of landlord insurance

Whether renting out just one property or a large portfolio of properties, being a landlord comes with several risks outside your control. Landlord insurance is designed to mitigate these risks.   

Different types of landlord’s insurance are designed to protect you from different risks. Although there are many different types of insurance, you won’t necessarily need all of them. The insurance or insurance you choose will depend on the type of property you rent, the type of tenants and your unique situation.

Here is a quick summary of the 3 most common types of cover.

Landlord buildings insurance

This is one of the most common types of landlord insurance cover. It covers the cost of rebuilding or repairing your rental property in the event of damage to your property. This could be from natural disasters, theft, vandalism, fire or flooding.

Landlord contents insurance

You should consider contents insurance if renting out a part or fully-furnished property. This protects your white goods, furniture and other items from damage. Some policies may also cover malicious damage.

Landlord liability insurance

This public liability insurance is designed expressly for landlords. If there are any injury or damage claims related to your rental property, landlord or property owner liability insurance will ensure you are protected.

Although these are the most common types of insurance, there are many other policies and add-ons that you can select to ensure you're fully protected, such as legal expenses insurance and tenant default insurance to protect you from lost rental income. 

Check out our blog, ‘9 types of landlord insurance that can protect you from a personal lettings disaster’, for a more thorough breakdown of the different types of cover.

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Is landlord insurance mandatory?

There is no legal requirement to have any form of landlord insurance to protect your rental property.  However, you’ll likely be required to have insurance if you have a mortgage on your rental property. At a minimum, you’ll likely be required by your mortgage lender to have landlord building insurance to protect the property’s structure. 

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Do I need landlord insurance?

Even if you aren’t required to have insurance (because you don’t have a mortgage), it is still something you should consider. Landlord insurance helps to protect your property and your tenants against the common risks associated with renting out a property. Without it, your assets could be at risk if something happens.

Additional cover add-ons or specialist landlord insurance policies help you stay protected against all eventualities. For example, rent guarantee insurance ensures that you are not at a financial loss if your tenants stop paying rent. Evictions can take over 6 months, so taking out specialised insurance ensures you will not suffer financially. This is especially crucial if you rely on your rental income to pay your mortgage or need it for living expenses.

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Specialist Landlord Insurance by Lets Insure

Many standard landlord insurance policies are limited in the coverage they provide. They might offer building and content insurance and accidental damage coverage, but they might not cover home emergencies, legal expenses, or rent in the event of arrears.  

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

Rent guarantee insurance

This is designed to cover you if tenants stop paying rent during their tenancy. This policy pays 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.

Lets Insure also offers a premium Rent Guaranteed service, which ensures you’re paid your rent on time each month regardless of your tenant’s situation. 

Home emergency cover

This offers peace of mind to landlords and tenants. You’ll get 24-hour access to an expert team of certified contractors who will resolve any issues or emergencies with your rental property, usually on the same day they’re reported. 

Deposit replacement insurance

This is an alternative to standard tenancy deposits. Instead of a deposit, the tenant will pay us a non-refundable fee (approximately 1 week’s rent). 

In the event of a dispute with the tenant over damage found during an inspection or after vacating the property, the policy will cover legal expenses 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 chosen.

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

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