What is Landlord Insurance?

Valentina GolubovicValentina Golubovic
Last updated on:
February 28, 2023
Published on:
June 6, 2022

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Landlord insurance is a type of property insurance policy that landlords can purchase to protect themselves from potential financial loss due to damages or theft caused to their properties by tenants. This article provides an overview of the different types of landlord insurance and why insurance is important.

What does Landlord insurance cover?

A landlord insurance policy can have different levels of cover, including things like:

  • loss of rent
  • contents
  • damage to your property
  • alternative accommodation (for your tenant)
  • Emergency repairs
  • Liability for injury or loss related to your rental property

Types of Landlord insurance cover

Many things can be covered under the landlord's insurance policy. Some examples are listed below:

Legally, it is not a requirement to have landlord insurance however, being a landlord comes with risks that you don't have when you live in your own home. If you have a mortgage on your rented property (e.g. buy to let mortgage), your mortgage provider can often request that you obtain landlord insurance before letting tenants in. It is best to check with the mortgage lender, as you may be breaching the terms of your contract if you don't have a landlord insurance policy.

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Why is insurance important?

Landlord liability insurance is vital as landlords owe a duty of care to anyone living in the rented home. Liability insurance will cover landlords if a tenant or a visitor is injured on their property. This could result from a tenant tripping over loose flooring and falling downstairs. In response to such an accident or legal costs, the compensation requested could cost landlords a considerable amount. Furthermore, if you only have standard home insurance and your provider is not aware you are letting out your home, it can lead to your insurance being invalidated, and you will be forced to pay a hefty bill. In conclusion, having liability insurance as a landlord cover expenses if you’re taken to court because of your property.

Do I need landlord insurance?

By law, landlords must keep their properties to specific standards when renting including gas and electrical safety. The Queen's speech on May 10th outlined the government's plans to introduce a property portal that may be used for reporting repairs by tenants and extending the Decent Homes Standards to the private sector. Staying on top of all the necessary repairs can be costly, and in the event of weather or water damage, it can add unnecessary costs which the landlord is required to pay. Having landlord buildings insurance would allow landlords to claim against it in the event of any burst pipes and therefore save money.

Does landlord insurance cover tenant damage?

If you are letting a furnished property, there is a risk of damage to your contents. Contents of your home include; any furniture, carpet, appliances and more. Repairing or replacing any contents can be costly, especially if you have many properties. You can protect these items in your home with landlord contents insurance and save yourself unnecessary expenses.

Does landlord insurance cover unpaid rent?

You can get covered for any unpaid rent through rent guarantee insurance, a type of landlord insurance cover that reimburses landlords for any rental income if your tenant defaults. Renting out your home is a business and losing out on rent due to tenants defaulting is something you can protect your income against.

While it's not a legal requirement to have an insurance policy, there are benefits, and if you are a landlord, your risk of damage increases. Therefore, it's essential to protect yourself against any financial loss.

What to do next?

Pikl provides specialist landlord insurance for your properties. Visit Pikl to obtain a quotation in just a few minutes. Alternatively, you can call the Pikl team on 0800 254 5171 quoting Legislate Technologies Limited.

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