The ultimate guide to landlord insurance

Being a landlord can be a great source of income, but it also comes with its own set of risks. One of the most significant risks for landlords is property damage or loss caused by tenants or natural disasters. 

That’s where landlord insurance comes in. In this ultimate guide, we will cover everything you need to know about landlord insurance, including what it covers, how much it costs, and where to find the best policies.

What is Landlord Insurance?

Landlord insurance is a type of insurance policy that is specifically designed to protect landlords and their rental properties. It provides coverage for a range of potential risks that landlords face, such as damage to the property or liability claims made by tenants or visitors.

Let’s start by looking at what types of properties can be covered by landlord insurance. Landlord insurance can be purchased for a wide variety of properties including Single-Family homes, Multi-Family properties, HMO’s and Commercial Properties. For example, if you own a house that you rent out to a family, you can purchase landlord insurance to protect yourself from potential financial losses related to damage to the property, legal fees, or liability claims.

Now, let’s take a look at some examples of tenants and how they can impact the type of landlord insurance you may need.

If you rent to a single family, you will need a different type of policy than if you rent to multiple unrelated individuals, such as in an HMO.

What Does Landlord Insurance Cover?

Landlord insurance policies can vary depending on the provider and the level of coverage chosen. However, most policies cover the following:

1. Property Damage: This includes damage to the building due to natural disasters like floods, storms, or fires, and can include malicious damage caused by tenants.
2. Loss of Rental Income: If your property becomes uninhabitable due to an insured peril, your landlord insurance policy will cover the rental income you would have earned during that time.
3. Liability Insurance: This covers any legal costs or compensation payments you may be liable for if a tenant or visitor to your property is injured or suffers damage to their property while on your premises.

What does landlord policy cover?

You can tailor your landlord insurance policy, depending on what you’d like to be covered for. 

The more cover you include, the higher your policy premiums are likely to be. The different levels of cover you can choose from include:

• Buildings only
• Buildings & contents
• Contents only (not including your tenant’s belongings)
• Fixtures and fittings
• Full accidental damage
• Loss of rent
• Alternative accommodation
• Property owner’s liability
• Unoccupied property cover
• Legal protection
• Malicious damage caused by tenants up to a maximum of £5,000
• Theft by tenants up to a maximum of £5,000

As you can see, landlord insurance provides you with protection against the eventualities that you are at risk of as a landlord.

Types of Landlord Insurance 

Here are the different types of landlord insurance you should be familiar with. You’ll find that you may need specific insurance depending on the situation you are in. Getting to know each type of landlord insurance will give you a better understanding of finding the right fit for you and your asset. 

Landlords Insurance 

In the UK, landlord insurance typically covers property damage caused by natural disasters or tenants, loss of rental income due to damage or loss to the property caused by an insured peril, and liability insurance for legal costs or compensation payments related to injuries or damage to property suffered by tenants or visitors to the property. 

The level of coverage can vary depending on the provider and the policy chosen. It’s important to review the coverage offered by different policies to ensure that you have adequate protection for your rental property.

Landlords Contents Insurance 

A landlord would take out contents insurance in the UK if they rent out a furnished or part-furnished property and want to protect these items from damage caused by natural disasters and tenants. Contents insurance can cover items such as furniture, appliances, and carpets

Landlords Building Insurance 

Landlords’ building insurance should be taken out by landlords to protect their property against damage caused by natural disasters, such as floods or storms, and can include full accidental damage and malicious damage caused by tenants. 

Building insurance typically covers the structure of the property, including walls, roof, and floors, as well as any permanent fixtures like built-in cabinets or countertops. Landlords need to have building insurance in place to ensure that they can quickly repair any damage and get their property back on the rental market.

Buy-to-let Insurance 

Buy-to-let insurance is a type of insurance policy designed specifically for landlords who rent out their properties. It provides coverage for property damage, loss of rental income due to an insured peril, and liability insurance. 

This type of insurance can protect landlords from financial losses due to damage caused by natural disasters and accidents or legal claims.

Rental Insurance 

What is rented property insurance? Put simply, it is essentially home insurance but for rented properties. It is designed to cover the property whilst your tenant is the resident and can be combined with other insurance policies to protect property owners and landlords

What insurance should a landlord have in the UK?

This commonly asked question can be answered by one of our highly experienced and friendly team at CIA. Every landlord has a unique situation so we’d like to find the right cover for you. Get in touch with our team and start the process of getting cover you can rely on. 

You should consider having several types of insurance coverage, including

Landlord Insurance: This covers damage to the rental property caused by natural disasters or tenants, loss of rental income due to damage or loss to the property, and liability insurance.

Contents Insurance: If the rental property is furnished, landlords may want to consider contents insurance to protect their personal belongings from damage caused by tenants.

Legal Protection: If your tenants do not move out after being served the correct notice a solicitor will be appointed for the eviction process

What different property types does landlord’s insurance cover?

Landlord insurance policies typically cover different types of properties, each with its unique coverage needs. Some of the most common types of properties covered by landlord insurance include:

Single-family homes: These are properties consisting of one unit, and the landlord’s insurance policy covers the structure and any fixtures and fittings. The policy may also include liability coverage in case of accidents or injuries on the property.

Multi-family properties: These are properties that have more than one unit, such as apartments, flats or duplexes. Landlord insurance policies for these properties usually provide coverage for the structure and any common areas, as well as liability coverage for tenants and visitors.

HMOs: HMOs, or houses with multiple occupants, are properties that have three or more unrelated tenants who share communal spaces such as kitchens or bathrooms. Landlord insurance for HMOs typically includes additional coverage for things like public liability and employer’s liability.

Commercial properties: These are properties used for business purposes, such as offices, shops, or warehouses and can also have a residential element. Landlord insurance policies for commercial properties typically provide coverage for the building and its contents, as well as liability coverage for employees and visitors.

Can I get landlord insurance on a listed building?

Yes, it is possible to get landlord insurance on a listed building providing it is not a Grade 1 and Grade A listing. However, insuring a listed building can be more complex and expensive than insuring a non-listed property.

A listed building is a property that has been deemed to have special architectural or historical interest and is protected by law. Because of the unique characteristics of these buildings, it can be more difficult to find insurance providers that offer coverage for them.

When insuring a listed building, it’s important to make sure that the policy includes coverage for the full rebuild cost of the property, as well as any additional costs that may be associated with restoring the building to its original state. This may require a specialist insurance provider who is experienced in dealing with listed buildings.

In addition, listed buildings may require more frequent and specialised maintenance, therefore it is important to make sure that as a landlord you ensure all maintenance is carried out

As you can see, insuring a listed building as a landlord can be more complex than insuring a non-listed property, but it is possible to find an insurance provider who can offer coverage that meets your needs.

What are the different types of tenants to consider when getting landlord insurance?

When getting landlord insurance, different types of tenants are considered as they can affect the level of risk associated with the rental property. Here are some of the most common types of tenants that are taken into consideration when purchasing landlord insurance:

Families: Families are a common type of tenant and may be viewed as lower risk due to their tendency to stay in a rental property for longer periods of time. They also tend to take better care of the property than other types of tenants.

Students: Students are often considered higher risk due to their transient nature and tendency to throw parties, which can result in damage to the property.

Young professionals: Young professionals may be viewed as lower risk due to their stable income and responsible behaviour. They may also be more likely to maintain the property and pay their rent on time.

DSS tenants: DSS (Department of Social Security) tenants are those who receive housing benefits from the government. They may be considered at higher risk due to the uncertainty of their income and the possibility of rent arrears.

Pets: Tenants with pets may be viewed as higher risk due to the potential for damage to the property. Landlords who rent to tenants with pets need to be aware that pet damage is excluded from all policies 

Ultimately, make sure you understand the risks associated with the types of tenants you rent to and work with an insurance provider to find a policy that provides the right level of coverage for your needs. They should also review their policy regularly and make any necessary updates to ensure they remain adequately protected.

How Much Does Landlord Insurance Cost?

Unsurprisingly, landlord insurance can vary depending on several factors such as the location of the property, the type of property, the level of coverage required, and the insurer. 

Generally, landlord insurance policies provide coverage for the building and contents if requested, as well as liability protection in case of accidents or injuries to tenants or visitors.

Factors that can increase the cost of landlord insurance include the age and condition of the property, the number and type of tenants, the location and the type of property. Properties in high-risk areas, such as flood-prone or crime-ridden areas, will usually attract higher premiums.

Reassuringly, landlords can also opt for additional coverage such as Legal Protection which will provide legal advice and assist in the eviction of tenants.

It is important for landlords to shop around and compare policies from different insurers to find the best coverage at the most affordable price. They should also make sure they fully understand the terms and conditions of the policy before purchasing to ensure they have the right level of protection for their investment property.

What happens if a landlord doesn’t have landlord insurance?

If a landlord doesn’t have landlord insurance, they may be liable for any damages caused to the rental property, and may also face financial losses due to loss of rental income or legal costs. 

Without insurance, the landlord would have to pay for repairs or replacement of damaged property out of their own pocket, which could be a significant financial burden. In addition, if a tenant or visitor suffers an injury or damage to their personal property on the rental property, the landlord may be liable for compensation payments and legal costs.

Get your property covered today

By choosing CIA Landlords Insurance, we can provide landlords with peace of mind knowing that they have comprehensive coverage for a range of potential risks associated with their rental properties. 

Get in contact now so we can start to find the right policy for you. 

CIA offers a wide range of policies to suit different types of properties and tenants, and their policies are underwritten by top-rated insurers. Additionally, their experienced team is dedicated to providing exceptional customer service and can help landlords find the right level of coverage for their specific needs. 

So whether you’re renting out a single-family home or a commercial property, we can help you protect your investment and ensure that you’re covered in the event of unforeseen circumstances. Don’t leave your rental property vulnerable to potential risks.