What landlord insurance do you need?
June 11, 2025
Being a landlord comes with plenty of responsibilities, and one of the most important aspects of safeguarding your investment is ensuring you have the right insurance. Unlike standard home insurance, landlord insurance is designed to protect you from the unique risks that come with renting out a property. But with so many options available, it can be challenging to know exactly what coverage you need.
In this guide, we’ll break down the essential types of landlord insurance, why they matter, and how to choose the right policy for your property.
Why do you need landlord insurance?
Owning a rental property means you’re exposed to different risks compared to owner-occupier properties. Landlord insurance helps mitigate these risks and provides financial protection in case something goes wrong. Here are a few reasons why you should consider it:
Legal requirement - While it’s not legally mandatory, many mortgage lenders require you to have landlord insurance as a condition of your buy-to-let mortgage.
Protecting your investment - From property damage to loss of rental income, the right insurance can help you recover financially if disaster strikes.
Liability coverage - If a tenant or visitor gets injured on your property, landlord insurance can cover legal fees and compensation claims.
Essential types of landlord insurance
There’s no one-size-fits-all when it comes to landlord insurance, but here are the core types you should consider:
1. Building insurance
This covers the physical structure of your property against risks like fire, flooding, vandalism, or structural damage. Building insurance is crucial because repair costs can be significant, especially if your property becomes uninhabitable.
2. Contents insurance
If your rental property is furnished, this policy covers your belongings inside the property. It can include furniture, appliances, and fixtures that belong to you, not the tenant. Note that tenants should arrange their own contents insurance for their personal possessions.
3. Landlord liability insurance
If a tenant or visitor gets injured on your property and you’re found responsible, this insurance covers legal expenses and compensation. Accidents can happen, and having liability coverage protects you from potentially hefty payouts.
4. Loss of rent insurance
If your property becomes uninhabitable due to damage (like a fire or flood), this insurance compensates you for lost rental income during repairs. It’s an essential policy for maintaining cash flow during unforeseen events.
5. Rent guarantee insurance
Tenants might occasionally fail to pay rent, which can severely affect your income. Rent guarantee insurance ensures you still receive rental payments when your tenant defaults. Some policies even cover legal expenses if you need to evict the tenant.
6. Emergency cover
From boiler breakdowns to plumbing issues, emergencies can arise at any time. Emergency cover ensures that you can quickly address urgent repairs, preventing prolonged inconvenience for your tenants.
Choosing the right policy
With so many types of coverage, how do you decide what you really need? Consider the following:
Property Type - A furnished flat may require contents insurance, while an unfurnished house might not.
Tenant Type - Renting to students or multiple occupants might increase the risk of damage, warranting more comprehensive cover.
Your Financial Position - Can you afford to cover potential losses out of pocket, or do you need insurance to mitigate the risk?
How to get the best deal on landlord insurance
Bundle policies - Some insurers offer discounts if you combine building and contents insurance.
Review annually - Property and tenant situations change, so review your coverage regularly.
Check exclusions - Always read the small print to understand what isn’t covered.
Final thoughts
Landlord insurance is about protecting your investment and ensuring peace of mind. While it might feel like just another expense, the right coverage can save you thousands in the event of an accident, damage, or loss of income.
Make sure to assess your property’s specific needs and get professional advice if you’re unsure about the level of cover required. By choosing the right landlord insurance, you can focus on managing your property without worrying about unexpected setbacks.
Disclaimer: This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.
