Squatters insurance

Squatters insurance is a specialist landlord insurance add-on that covers the legal costs of removing unauthorised occupants from a property, damage they cause during occupation, and loss of rental income while the eviction process runs its course. It is typically purchased as part of a broader landlord insurance policy rather than as a standalone product, and is most relevant to landlords with vacant properties or those who hold properties between tenancies.

What squatters insurance covers

Policies vary by insurer, but most squatters insurance products provide some combination of the following:

Legal expenses for eviction proceedings. Applying for an Interim Possession Order or pursuing an ordinary possession claim through the county court involves court fees, and most landlords instruct a solicitor. Legal expenses cover typically reimburses these costs up to a stated limit, commonly between £25,000 and £100,000 depending on the policy. Simply Business, for example, includes up to £50,000 in legal expenses cover as part of its landlord legal insurance product.

Malicious damage by squatters. Buildings insurance typically covers damage caused by squatters, including broken doors, forced entry damage, stolen fixtures, where that damage constitutes vandalism or malicious damage. Some policies restrict this to cases where squatters entered through forced entry, so landlords whose properties were accessed through unlocked doors or windows should check their policy wording carefully.

Loss of rent during the eviction period. Some policies include a rent guarantee or loss of rent element that compensates the landlord for income lost while the property cannot be let due to unauthorised occupation. This element is not universal and is often sold as a separate rent guarantee product.

Legal advice helpline access. Many landlord legal expenses products include access to a telephone advice line for guidance before formal proceedings begin.

What squatters insurance does not usually cover

Standard landlord insurance policies frequently restrict or exclude cover for properties that have been vacant for more than 30 to 60 consecutive days. Landlords must disclose vacancy to their insurer; failing to do so can void cover entirely. Where a standard policy no longer provides adequate protection, a specialist unoccupied property insurance product may be required.

Squatters insurance does not cover a tenant who has overstayed following the end of a tenancy. A person who originally entered the property with permission, under a tenancy agreement, is not a squatter in law, even if they refuse to leave. Removing such a person requires a possession order under the standard possession process, not an Interim Possession Order. Legal expenses cover may still apply to possession proceedings against a holding-over tenant, but this is a different legal route.

The legal context: residential vs commercial property

The distinction between residential and commercial property matters for both insurance and legal strategy. Under Section 144 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, squatting in a residential building is a criminal offence in England and Wales, carrying a maximum penalty of six months in prison, a £5,000 fine, or both. Landlords discovering squatters in a residential property should contact the police in the first instance.

Squatting in commercial property is not a criminal offence. Landlords must pursue civil possession proceedings to recover commercial premises, making legal expenses cover particularly valuable for those with commercial or mixed-use portfolios.

The gov.uk guidance on squatting and the law provides a summary of the legal routes available to property owners in each scenario.

When landlords need squatters insurance

From working with self-managing landlords across the UK, August has found that squatter risk is most acute during void periods, when a property sits empty between tenancies. Most landlords do not take out specific squatters insurance because their standard policy covers malicious damage and includes a legal expenses element. The gap tends to emerge when a property has been vacant for long enough that standard cover is reduced or withdrawn, or where the policy wording specifically excludes damage by persons who entered peacefully.

Landlords who hold vacant properties for extended periods, during renovation, between tenants, or while a property is on the market, should review their policy schedule with their broker and confirm that cover remains in place. Squatters insurance is worth considering as an add-on where a standard policy does not extend to unauthorised occupation.

For a full explanation of eviction routes, legal timescales, and the costs involved in removing squatters, see the squatters rights guide for UK landlords. Landlords should also review their policy schedule carefully, the what landlord insurance do you need guide sets out what each cover type provides and when each applies.

Frequently asked questions

Is squatters insurance the same as legal expenses insurance?

They overlap but are not identical. Landlord legal expenses insurance covers the cost of legal proceedings across a range of disputes, including possession claims, rent arrears, and housing disrepair, and squatter eviction is typically one covered scenario within that broader product. Squatters insurance as a standalone term is rarely used by UK insurers; the relevant protection is usually embedded within a legal expenses or landlord insurance policy.

Does my existing landlord insurance cover squatter damage?

It depends on your policy wording and the circumstances of entry. Buildings insurance typically covers malicious damage and vandalism, which can include damage caused by squatters. However, some policies restrict this cover to cases where entry was forced, and most reduce or withdraw cover after a property has been vacant for 30 to 60 days. Check your policy schedule and notify your insurer if the property is vacant for an extended period.

Can I claim for lost rent if squatters are in my property?

Only if your policy includes a loss of rent or rent guarantee element that covers void periods caused by unauthorised occupation. Many standard policies do not include this element for squatter situations. Check your policy or speak to your broker before assuming the cover applies.

Does squatters insurance apply to commercial property?

Legal expenses cover can apply to commercial property possession proceedings, but squatting in commercial premises is a civil rather than criminal matter. Insurers treat commercial and residential property differently, and commercial landlords should confirm with their broker whether their policy covers civil possession proceedings for commercial premises.

Disclaimer: This entry is a guide and is not intended as legal or professional advice. Always speak to a suitably qualified professional or your insurance broker for advice specific to your circumstances.