Landlord insurance explained

Landlord insurance: What is it and why do you need it?

Being a landlord comes with a number of responsibilities wherever you are not only responsible for the wellbeing of your tenants, but you need to keep yourself safe too.

If you are a landlord, then you need to insure your rental properties to help ensure that safety.

Although there is now no legal requirement that states your need for insurance, if you have a buy-to-let or HMO mortgage then your property development finance lender may state that you need insurance.

What does landlord insurance cover?

This kind of insurance will cover buildings and its contents in the event of the following situations:

  • Rent is not paid
  • Your property is damaged by the tenant
  • Rehousing costs if your tenants move out
  • Liability for accidents that occur within your property
  • Unpredictable events: fires, vandalism, flood.

Read more about what insurance covers.

What makes this different from regular insurance?

A standard home insurance policy will not take into account the risks that landlords are faced with, such as unpaid rent, or accommodation costs if your tenants need to move out after an insured event.

If you are the owner of a number of properties then you are able to get over for multiples properties.

Insuring your portfolio can work out cheaper as the price per property comes down.

Read more.

Why do I need landlord insurance?

As mentioned, although there is no legal obligation to have landlord insurance, most buy-to-let mortgages are given on the condition that you have insurance.

Insurance covers and protects you should you be hit with a legal claim from your tenants, or if you are sued.

It is recommended because it covers your needs and risks as a landlord.

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