What is Landlord Insurance?

published on 08/06/2022  

When making the decision to become a landlord, landlord insurance should be one of the very first things you consider to ensure your investment is protected.

Kings Lettings want to make sure you’re fully conscious of what landlord insurance is, whether you need it and what it covers. That’s why we’ve answered all of your questions about how to legally protect your rental income.

What is landlord insurance?

Landlord insurance is insurance cover that protects landlords and their income from the risks associated with renting out their property.

Is landlord insurance a legal requirement?

It is not a legal obligation that you have landlord insurance if you’re renting out a property, but most, if not all, buy-to-let mortgages require it under the terms of the mortgage.

Why do I need landlord insurance?

Renting out a property is an investment and it is important that you protect it from property damage, injury claims and other associated letting risks. Home insurance isn’t sufficient cover for a rental property, so if you decide to become a landlord, you need to talk to your insurance provider about updating your claim to include landlord cover.

What is the difference between home insurance and landlord insurance?

There are several differences between home insurance and landlord insurance. These include:

  1. Home insurance doesn’t cover legal responsibilities incurred by duty of care to your tenants 
  2. Home insurance policies only offer alternative accomodation to the owner/occupier of a property in the case of an insured event such as a fire or flood 
  3. Landlord insurance covers legal expenses following faulty handiwork if it causes damage to the property 
  4. Landlord insurance protects you from damage caused to the property by your tenants 
  5. Landlord insurance covers any missed rental payments 

What does landlord insurance cover?

This will depend entirely on your insurance provider and the policy you choose, but most will include property owners liability insurance and building insurance.

Some of the main landlord insurance policies are:

Property owners liability insurance

Property owners liability insurance covers the owner of a building if injury occurs to a third party on their property.

For example, if a drainpipe fell on the head of a passerby and they decided to press legal charges, property owners liability insurance would cover the legal fees incurred.

Building insurance

Building insurance covers the cost of rebuilding or repairing damage to the structure of your property. This should cover the cost of a full rebuild, which provides security to landlords in the case of a flood or fire.

Loss of rent insurance

Loss of rent insurance protects you if tenants are forced to move out of your property after an insured event such as a fire or flood. This will cover your loss of rental income, as well as pay for alternative accomodation for your tenants.

Tenant default insurance

Tenant default insurance is a form of landlord protection that covers rental income if a tenant can’t pay their rent.

Landlord content insurance

Landlord content insurance provides cover to replace or repair furnishings in a rental property that belong to the landlord.

Accidental damage insurance

Accidental damage insurance pays out to cover accidental damage caused to a rental property. For example, replacing a window that was smashed with a ball, or covering the cost of a new carpet after an accidental spillage.

What doesn’t landlord insurance cover?

What your landlord insurance covers will entirely depend on your insurance provider, but most landlord insurance policies won’t include protection against the following:

  • General wear and tear to your property
  • Deliberate damage caused by your tenants
  • Damage to your tenants’ assets
  • Damage caused by pets
For further queries regarding landlord insurance, feel free to contact Kings Lettings and we’ll be happy to answer your questions. Alternatively, visit our Landlord FAQs page for more information on becoming a landlord.

Lettings and property management offices in London, Reading, Maidenhead, Staines & Windsor.
T: +44 (0)16 2863 2188 | E: MAIDENHEAD@KINGS-LETTINGS.CO.UK Tags: Landlord Insurance, Landlords, Property Management, Rent My Home, Rent My House, Letting Agents,