What Should You as a Landlord Look for in Your Property Insurance?

What Should You as a Landlord Look for in Your Property Insurance?

Whether you own one rental property or a growing portfolio, having the right insurance in place is one of the most important steps you can take to protect your investment. Standard home insurance is not enough - because the moment you let a property to tenants, your risks change dramatically. From potential damage to legal liability, rental income loss to emergency repairs, a robust landlord insurance policy ensures you’re covered when things don’t go to plan.

But with so many policies on the market, knowing what you actually need can be confusing. Below, we break down the key features to look for and the optional extras worth considering, so you can make an informed decision and safeguard your property properly.

Core Coverages Every Landlord Should Have

A good landlord policy should always include the following essential protections:

1. Landlord Building Insurance

This forms the backbone of your policy. It covers the cost of repairing or rebuilding the structure of your property after major events such as:

• Fire

• Flood

• Storm damage

• Subsidence

• Vandalism

It also protects permanent fixtures like fitted kitchens, bathrooms, and built-in storage. Without this cover, you could be left facing a bill running into tens or even hundreds of thousands of pounds.

2. Property Owner’s Liability Insurance

Liability cover protects you if someone is injured or their property is damaged due to something relating to your rental property - such as a loose step, faulty wiring, or a falling roof tile.

Most policies offer between £2 million and £5 million of cover. This may sound excessive, but liability claims can be incredibly expensive, especially if the injury is serious.

3. Loss of Rent & Alternative Accommodation

If your property becomes uninhabitable following an insured event (like a fire or flood), this cover ensures you aren’t left out of pocket. It typically pays for:

• Your missing rental income

• Temporary accommodation for your tenants

For many landlords, this clause is a financial lifeline during what could otherwise be a very stressful time.

4. Landlord Contents Insurance

If your rental is furnished or part-furnished, this protects any items you own - such as:

• Furniture

• Curtains

• White goods

• Carpets

This does not cover tenants’ personal belongings, which they must insure themselves.

5. Malicious Damage by Tenants

Standard insurance normally only covers vandalism from outside parties. However, tenant-caused malicious damage can be one of the more costly and emotionally draining experiences for landlords. A good policy will offer this as an add-on and it’s well worth considering, particularly for HMOs or properties with a higher turnover of tenants.

Optional but Valuable Add-Ons

Depending on your rental property, type of tenants, and risk tolerance, you may wish to consider additional protections:

1. Rent Guarantee Insurance

Sometimes known as tenant default insurance, this pays your rent if your tenant stops paying. It’s separate from “loss of rent” cover, which only applies after insured damage.

With the cost of living still affecting many households, this has become an increasingly popular safeguard.

2. Landlord Home Emergency Cover

This provides 24/7 access to emergency contractors and covers immediate issues such as:

• Burst pipes

• Boiler breakdowns

• Electrical failures

• Pest emergencies

It’s ideal for preventing small issues from becoming big, expensive problems.

3. Legal Expenses Insurance

This covers legal costs for issues such as:

• Evicting a tenant

• Recovering rent arrears

• Contract disputes

• Pursuing damages

Legal fees can mount quickly, so this is often a cost-effective addition.

4. Accidental Damage by Tenants

While malicious damage is intentional, accidental damage can happen at any time. Examples include:

• A cracked hob

• Wine spilled on carpets

• A smashed window

Not all policies include accidental damage as standard, so check carefully.

5. Employers’ Liability Insurance

A legal requirement if you employ anyone - even casually - to help maintain the property. This includes gardeners, cleaners, or handymen.

6. Unoccupied Property Cover

Most standard policies become limited or invalid if a home is empty for over 30–60 days. If your property may be vacant between tenancies or during refurbishment, this cover is essential.

7. Landlord Portfolio Insurance

For landlords with multiple properties, a portfolio policy can:

• Reduce overall premiums

• Simplify administration

• Provide consistent coverage across all rentals

It’s usually more efficient than arranging separate policies for each property.

Key Exclusions to Watch Out For

Understanding what’s not covered is just as important as knowing what is. Common exclusions include:

Wear and Tear

Insurance isn’t a substitute for routine maintenance. Anything caused by normal ageing or lack of upkeep won’t be covered.

Unauthorised Alterations by Tenants

If tenants make changes without permission - such as removing doors or altering fixtures - and this leads to damage or invalidates your policy, insurers may refuse future claims.

Pest Infestations

Most policies do not cover infestations like rats, mice, bedbugs, or wasps. These are treated as maintenance issues rather than insurable events.

Gradual or Unreported Damage

Slow leaks, mould caused by poor ventilation, or long-standing issues that weren’t reported promptly are typically excluded.

Tenants’ Personal Belongings

Landlord insurance covers your items only. Tenants must obtain their own contents insurance if they wish to protect their possessions.

Final Thoughts

Your rental property is a valuable asset, and choosing the right insurance is essential to protecting both your investment and your peace of mind. While it’s tempting to simply choose the cheapest policy, it’s far more important to choose the right one - one that matches the risks, the property type, and the coverage level you genuinely need.

If you're unsure whether your current policy provides adequate protection, or you're reviewing your cover ahead of legislative changes like the Renters' Rights Act, we’re always happy to help point you in the right direction.