Do I need landlord insurance?

Standard home insurance does not cover rental properties. If you let a property, you need landlord-specific insurance that covers the risks of having tenants. While not legally required, your mortgage lender will almost certainly require buildings insurance, and landlord-specific cover protects against risks unique to renting out property.

How much does landlord insurance cost?

Landlord insurance typically costs £150-£400/year for buildings-only cover, or £200-£600/year for comprehensive cover including buildings, contents, rent guarantee, and legal expenses. Costs depend on property type, location, rental income, and cover level.

What is the difference between landlord insurance and home insurance?

Home insurance covers owner-occupied properties. Landlord insurance covers the specific risks of renting: tenant damage, liability to tenants, rent guarantee (if tenants stop paying), legal expenses for disputes, loss of rent during uninhabitable periods, and landlord contents (if furnished).

Landlord Insurance Guide UK — Protect Your Rental Property | PocketWise

As a landlord, standard home insurance will not cover your rental property. Landlord insurance is specifically designed for the unique risks of letting — from tenant damage to liability claims to rent defaults.

What Landlord Insurance Covers

Core Cover

Cover	What It Protects
Buildings insurance	Structure, roof, walls, fixtures — same as standard buildings insurance
Landlord liability	Claims if a tenant or visitor is injured at your property
Property owners’ liability	Public liability cover (typically £2–£5 million)
Loss of rent	Rental income if the property is uninhabitable after an insured event

Optional/Enhanced Cover

Cover	What It Protects
Landlord contents	Your furniture and appliances (furnished/part-furnished lets)
Rent guarantee	Rental income if the tenant stops paying
Legal expenses	Legal costs for tenant disputes, evictions, tax investigations
Malicious damage by tenant	Deliberate damage by tenants
Emergency cover	Boiler breakdown, burst pipes, locksmith
Unoccupied property	Extended cover during void periods
Accidental damage	Unintentional damage to buildings or contents

Typical Costs

Cover Level	Annual Premium
Buildings only	£150–£400
Buildings + contents	£200–£450
Buildings + rent guarantee	£250–£500
Comprehensive (all cover)	£300–£600+

Factors Affecting Premium

Factor	Impact
Property type and age	Older/larger = more expensive
Location	High crime/flood risk = higher premium
Rebuild cost	Higher rebuild = higher premium
Rental income (for rent guarantee)	Higher rent = higher premium
Tenant type (students, professionals, DSS)	DSS/students may cost more
Number of properties	Multi-property discounts available
Claims history	Previous claims increase cost

Rent Guarantee Insurance

One of the most valuable landlord-specific covers:

Feature	Detail
What it covers	Rental income if your tenant stops paying
Typical cover	6–12 months of rent
Cost	£100–£200/year (standalone)
Requirements	Tenants must be properly referenced
Excess	Usually 1 month’s rent (no payment period)

Is Rent Guarantee Worth It?

Monthly Rent	Annual Rent	Insurance Cost	Cover Level (12 months)
£800	£9,600	£150	£9,600
£1,200	£14,400	£200	£14,400

A single non-paying tenant can wipe out years of profit. For £150–£200/year, rent guarantee provides significant peace of mind.

Legal Expenses Cover

Feature	Detail
What it covers	Legal costs for tenant disputes, evictions, contractual disputes
Typical cover	£25,000–£100,000 of legal fees
Cost	£50–£100/year (often included in comprehensive policies)
When you need it	Section 21 / Section 8 proceedings, deposit disputes, contract breaches

Why Standard Home Insurance Is Not Enough

Scenario	Home Insurance	Landlord Insurance
Tenant falls and is injured	Not covered	Covered (liability)
Tenant stops paying rent	Not covered	Covered (rent guarantee)
Tenant deliberately damages property	Not covered	Covered (malicious damage)
Property unoccupied between tenants	May void policy	Covered (void period)
Eviction legal costs	Not covered	Covered (legal expenses)
Boiler breakdown	May be covered	Covered (emergency)

Using standard home insurance on a rental property may void your cover entirely if the insurer discovers the property is let.

Portfolio Landlords

If you own multiple properties:

Option	Pros	Cons
Individual policies	Tailor cover to each property	More admin, potentially more expensive
Portfolio/block policy	One policy, one renewal, discount	Less flexibility per property
Commercial landlord insurance	Designed for larger portfolios	May require minimum number of properties

Claims Tips

Document the property condition — take photos/video at every tenancy start and end
Keep maintenance records — proves you looked after the property
Report claims promptly — delay can affect the outcome
Keep receipts for all property expenses and purchases
Use proper tenancy agreements — required for some claims
Reference tenants properly — required for rent guarantee claims

For more on being a landlord, see our landlord guide and property tax guide.