Buy-to-let insurance can cover a rented property, landlord-owned contents, liability risks and certain losses of rental income.
Buy-to-let insurance is a type of landlord insurance for a house or flat that is rented to tenants.
A standard home insurance policy is usually designed for a property occupied by its owner. Letting the property changes how it is used and may create different risks.
Tell your insurer before letting the property. In England, if it has a mortgage, GOV.UK says you must get permission from the mortgage lender.
The cover included will depend on the insurer and the policy you choose. Common options may include the following.
Buildings insurance can protect the structure of the property. This may include the roof, walls, windows and permanent fixtures.
Policies may cover events such as fire, storm, flood, escape of water or subsidence. Cover is subject to the policy terms, limits, exclusions and excesses.
The amount of buildings cover should normally reflect the cost of rebuilding the property, not its market value. MoneyHelper explains the difference between buildings and contents cover in its home insurance guidance.
Landlord contents insurance may cover furniture, carpets, curtains, appliances and other items supplied by the landlord.
It does not usually cover a tenant’s personal belongings. Tenants may need to arrange their own contents insurance. The Association of British Insurers’ home insurance guidance explains how responsibility for buildings and contents can differ in rented homes.
Landlord liability cover may help with legal costs and compensation if someone claims they were injured, or their property was damaged, because of an insured incident linked to the rental property.
A policy will have a liability limit. It will not remove your legal duties as a landlord or cover every possible claim.
Some policies may include loss of rent cover if insured damage makes the property unfit to live in. They may also cover reasonable alternative accommodation costs for tenants.
Loss of rent cover is not the same as rent guarantee insurance, which may cover certain missed rent payments. Limits, waiting periods and eligibility rules can vary, so check the policy wording carefully.
Tell your insurer before letting the property. In England, if it has a mortgage, GOV.UK says you must get permission from the mortgage lender.
Insurance does not replace your legal duties as a landlord. These can include property safety, repairs, deposit protection and licensing. GOV.UK provides an overview of landlord responsibilities.
An insurer may ask for details such as:
You should answer all questions fully and accurately. Missing or incorrect information could affect the policy or a future claim.
Check the policy wording, schedule and excesses before buying cover. Pay close attention to exclusions and conditions for empty periods between tenancies.
Some policies reduce or restrict cover after a property has been empty for a set number of days. The insurer may also require inspections, heating controls or steps to prevent water damage.
The Financial Ombudsman Service explains that disputes about unoccupied properties often depend on the policy definition and whether its conditions were followed.
We arrange landlord insurance through insurers.
We can discuss how the property is used, who lives there and the cover you may need. We may also be able to help with some properties that have features such as flood risk, listed status or periods of unoccupancy.
Available cover, price, limits, excesses and acceptance will depend on the insurer, the policy and the full details provided. Always check the policy documents to make sure you understand what is and is not covered.
