Landlord insurance is specialist cover for rental properties that protects the building, your rental income, and your liability as a landlord.
At minimum, it usually combines buildings insurance with property owners’ liability cover.
What’s covered beyond that varies between providers and depends on the add-ons you choose. This guide walks through every major type of landlord insurance in the UK, how much it typically costs, where the small print bites, and why many landlords ultimately stick to minimal cover.
Key Takeaways
- Landlord insurance isn’t a legal requirement in the UK, but most buy-to-let lenders insist on at least buildings insurance as a mortgage condition.
- Standard policies typically include buildings insurance + property owners’ liability as the core package.
- Optional add-ons can include contents, accidental damage, loss of rent, tenant default / rent guarantee, legal expenses, malicious damage and home emergency cover.
- Typical costs: very basic buildings-only landlord cover starts around £170 a year, with an overall average of about £226 a year for a £200k rebuild value, before add-ons.
What Is landlord’s insurance?
Landlord insurance is built around the risks of letting – property damage from tenants or disasters, legal liability if someone is injured on your property, and loss of rental income after serious damage.
Most buy-to-let lenders require buildings insurance for at least the rebuild value of the property as a condition of the mortgage – it’s security for the loan.
Standard home insurance assumes you live there. Once tenants move in, many home policies either become invalid or won’t cover tenant-related risks.
What landlord’s insurance protects against
A good landlord policy is aimed at three big risk areas:
- Property damage – fire, flood, storm, escape of water, vandalism and other insured events.
- Liability claims – if a tenant or visitor is injured or their property is damaged and you’re held responsible.
- Loss of rental income – if the property can’t be let after an insured event.
What landlord’s insurance protects against
If you’re taking in a lodger or renting a room in your main home:
- Many standard home insurance policies become invalid or restricted once you have a paying lodger.
- You may need:
- Your home insurer to amend your existing policy, or
- A small-scale landlord / “rent-a-room” style policy with liability cover.
- Your home insurer to amend your existing policy, or
Always tell your insurer; quietly letting a room and hoping you’re covered can mean any claims get rejected.
Is landlord’s insurance legally required?
What does landlord insurance cover?
Most policies break down into:
- Standard/core cover: usually buildings + property owners’ liability.
- Optional / add-ons: contents, accidental damage, loss of rent, tenant default, legal expenses, home emergency, malicious damage, and more.
Standard cover (what most policies include)
1. Buildings insurance
| Typically covered | Typically not covered |
|---|---|
| Fire, explosion and smoke damage | Routine wear and tear |
| Storm and flood damage | Long-term gradual problems (e.g. a leak that’s been dripping unattended for months) |
| Escape of water (burst pipes, some leaks) | Malicious damage by tenants, unless this is specifically included or added as extra cover |
| Vandalism and malicious damage by intruders | Pre-existing damage or poor maintenance |
| Damage to the structure – walls, roof, floors, fitted kitchen and bathroom, built-in wardrobes | |
| Full rebuild costs if the property is destroyed (up to the sum insured) |
2. Property owners’ liability insurance
Sometimes called landlord liability or public liability cover.
Typically covered:
✔ Injury to tenants or visitors, for example tripping on loose carpet, falling on unsafe stairs or injury from faulty fixtures
✔ Damage to third-party property, for example, if a roof tile falls onto a tenant’s car or neighbouring property
✔ Legal costs and compensation
Typical limits are £2m – £5m. Many modern policies default to £5m as standard.
Typically not covered:
✖ Cases where you failed to meet safety obligations (e.g. no gas safety certificate, ignored serious disrepair)
✖ Commercial or mixed-use buildings that need a different policy type and higher limits
✖ Criminal or deliberately reckless behaviour
If you manage HMOs or properties with a lot of foot traffic, this part of the policy matters just as much as buildings cover.
Optional / add-on cover
1. Landlord contents insurance
This is for your belongings in the property – not the tenant’s.
For unfurnished or lightly furnished lets, many landlords decide the cost and admin of contents cover isn’t worth it.
Typically covered:
✔ Furniture (sofas, beds, tables)
✔ White goods and appliances
✔ Curtains, blinds, rugs and many carpets
Typically not covered:
✖ Tenants’ belongings – they need their own contents policy
✖ Items that are already at the end of their life (heavily worn, poor-quality)
2. Accidental damage insurance
Accidental damage is usually an extra that sits on top of buildings and/or contents cover.
Policies differ a lot – some only include limited accidental damage (e.g. to glass) unless you buy a higher tier.
Typically covered:
✔ Everyday accidents like spilled wine
✔ DIY mishaps damaging walls, worktops, tiles, sinks, etc.
✔ Accidental cracks or breakages to fixtures and fittings
Typically not covered:
✖ Ordinary wear and tear
✖ Malicious damage by tenants or their guests
✖ Damage arising from long-term neglect
3. Loss of rent (from insured damage)
This is not about tenants refusing to pay. It insures you for lost rent when the property is uninhabitable after an insured event.
Typically covered:
✔ Lost rent during repairs after fire, major escape of water, storm or similar
✔ Sometimes the cost of alternative accommodation for your tenants if required by the tenancy
Typically not covered:
✖ Rent arrears when the tenant simply stops paying
✖ Damage caused by events not covered by the main policy
✖ Long empty periods between tenancies
4. Tenant default / rent guarantee insurance
Rent guarantee (or tenant default) insurance is one of the most controversial add-ons.
Typically covered:
✔ Rent arrears once the tenant is usually at least two months in arrears
✔ Some or all legal and eviction costs (depending on policy)
This insurance can come with major conditions:
- Strict affordability and credit checks for tenants, often through the insurer’s approved partner
- Some policies require inspections every 3–4 weeks with written records
- You must report arrears within a very tight window
Because there’s a lot of conditions, many landlords don’t opt for this policy.
However, landlords who rely heavily on rental income, for example, in retirement, sometimes accept the hoops and still buy this cover as a backstop.
If you opt for fully property management, some letting agents, like Mansons, include rent arrears and eviction costs as part of the service.
In fact, we even include a 12-month rent guarantee – so your income is protected, no matter what happens.
5. Legal expenses insurance
Usually an add-on, sometimes included in a standard policy – so you’ll need to check with your insurer.
Typically covered:
✔ Legal costs for evictions and possession claims
✔ Contract disputes with tenants or tradespeople
✔ Debt recovery after unpaid rent or damage
✔ Defence costs if you’re taken to court over something covered by the policy
Typically not covered:
✖ Non-contractual disputes (e.g. neighbour rows unrelated to the tenancy)
✖ Cases where you’re clearly non-compliant with housing law
✖ Disputes that started before the policy began
6. Home emergency cover
Home emergency cover focuses on urgent call-outs rather than long-term fixes.
Typically covered:
✔ Boiler breakdown and loss of heating/hot water
✔ Sudden plumbing failures (burst pipes, major leaks)
✔ Emergency electrical failures
✔ Some include boarding up broken windows or securing doors
Typically not covered:
✖ Pre-existing faults or problems
✖ Lack of records (appliance dependent)
✖ General wear and tear or age-related deterioration
7. Malicious damage insurance
Typically covered:
✔ Vandalism by intruders
✔ Criminal damage to the building and (if included) contents
Important:
- Malicious damage by tenants is not usually covered. You may need:
- A specific malicious damage by tenants add-on, or
- A specialist policy that includes it.
- A specific malicious damage by tenants add-on, or
Insurers often review evidence very carefully – police reports, photos, check-in/check-out inventories and inspection notes help.
Other types of landlord’s insurance
Unoccupied property insurance
What it is: cover for properties that are empty for longer periods (e.g. major refurb, long void between tenants).
- Pros: keeps cover in place when standard policies would scale back
- Cons: higher premiums; strict conditions
Employers’ liability insurance
What it is: legally required if you employ anyone in relation to the property (e.g. cleaner, gardener, handyman), even casually, unless a specific exemption applies.
- Pros: covers compensation and legal costs if an employee is injured or becomes ill due to their work for you
- Cons: this is a legal requirement, so non-compliance can lead to fines
HMO insurance
What it is: specialist cover for Houses in Multiple Occupation, with higher liability limits and stricter fire safety and occupancy assumptions.
- Pros: better aligned with HMO risks; can satisfy licensing expectations
- Cons: more expensive than standard single-tenancy cover; more underwriting questions
Portfolio / multi-property insurance
What it is: One policy covering several properties, often with flexible sums insured.
- Pros: one renewal date, potential multi-property discounts, easier admin as you grow
- Cons: less flexibility if you want to chop and change cover per property; you’re committed to one insurer’s approach
Commercial landlord insurance
What it is: cover for properties let to businesses or mixed commercial-residential use.
- Pros: tailored to business risks, different liability profile, can include loss of rent from business interruption
- Cons: pricing is much more sensitive to the type of business (e.g. café vs office), and cover can be complex
Does location affect what cover I need?
There’s no UK region where landlord insurance is legally required, but your property’s location does impact risk and premiums.
How location affects risk (and price)
If you’re in an area that’s exposed to risk, like crime or weather damage, you’ll need to check your insurance policy carefully for exclusions and excesses to make sure you’re getting the cover you need.
You may also need to pay a higher premium.
Some risks to consider:
- Flood-risk areas
- High-crime postcodes
- Coastal or exposed regions
- Urban HMOs and city centres
When comparing quotes, make a note of how each insurer prices:
- Flood excess
- Malicious damage and theft conditions
- Any postcode-specific exclusions
How much is landlord’s insurance in the UK?
Recent analysis based on recent data, here are some average costs:
- Basic buildings-only landlord insurance for a typical UK rental (c. £200k rebuild value) can start around £170–£180 per year.
- Across property types, the average annual premium is around £226.
- Separate research puts the median cost (no extras, all property types) at about £234 per year.
Property type can also impact cost:
| Property type | Approx. annual premium* |
|---|---|
| Semi-detached house | ~£177 |
| Terraced / end-terrace house | ~£184 |
| Purpose-built flat | ~£197 |
| Flat in converted building | ~£229 |
| Detached house | ~£344 |
*Illustrative averages for around £200k rebuild cost.
How property age affects cost
Older properties usually cost more to insure:
19th-century buildings can be ~15–20% more expensive to insure than modern equivalents due to higher repair and specialist construction costs.
Sources
https://www.nimblefins.co.uk/landlord-insurance-uk/average-cost-landlords-insurance
https://www.fca.org.uk/firms/buildings-insurance-leasehold-properties
