Rental property insurance can protect a landlord’s building, contents, rental income and liability, depending on the cover selected.
Rental property insurance is designed for a house, flat or other property that is rented to tenants. It is also often called landlord insurance, buy-to-let insurance or let property insurance.
It differs from standard home insurance because the property is occupied by tenants rather than used only as the owner’s home. The property type, tenants, tenancy and letting arrangement can all affect the cover available.
There is no single UK-wide rule requiring every landlord to buy rental property insurance. However, Rent Smart Wales says landlord insurance is a mandatory licence condition in Wales. A mortgage lender may also require suitable buildings cover. In England, a landlord with a mortgage must get permission from the mortgage lender before renting out the property.
The cover depends on the insurer, policy and options selected.
Landlord buildings insurance can protect the structure of the property. This may include the walls, roof, floors and permanent fittings, such as a fitted kitchen or bathroom.
Policies may cover events such as fire, flood, storm, theft, subsidence and escape of water. The exact cover will be listed in the policy wording.
The buildings sum insured should usually reflect the cost of rebuilding the property, not its sale price. The Association of British Insurers explains the importance of using rebuild cost.
Landlord contents insurance may protect furniture, appliances and other items supplied by the landlord.
It does not normally cover belongings owned by the tenant. Tenants are usually responsible for insuring their own possessions. The ABI explains the difference between buildings and contents cover.
Single-item limits may apply. Theft, accidental damage and malicious damage by tenants may also be restricted or need extra cover.
Property owners’ liability may cover legal costs and compensation if someone is injured, or their property is damaged, and the landlord is legally responsible.
Some policies may also include loss of rent when insured damage makes the property unfit to live in. This is different from rent guarantee insurance, which may cover certain unpaid rent.
Limits, waiting periods and claim conditions can apply.
Cover may be reduced when a property becomes an unoccupied home. Insurers may require regular checks, set heating rules or impose security conditions. MoneyHelper explains that unoccupied-property restrictions can apply.
An insurer may ask about the property’s age, construction, rebuild cost, security, tenants, tenancy type, claims history, flood risk and empty periods.
For a consumer insurance contract, section 2 of the Consumer Insurance (Disclosure and Representations) Act 2012 requires the customer to take reasonable care not to make a misrepresentation. Answer the insurer’s questions carefully and accurately.
For a non-consumer insurance contract, part 2 of the Insurance Act 2015 requires the insured to make a fair presentation of the risk. The insurer or broker can explain which duty applies.
Check the policy to see which changes must be reported during the policy term. These may include a new type of tenant, a long empty period or a move to short-term letting. Wrong or incomplete information can affect the policy or a claim, depending on the circumstances and the legal rules that apply.or incomplete information can affect the policy or a claim, depending on the circumstances and the legal rules that apply.
We arrange landlord insurance for a range of let properties. This may include homes that are listed, at risk of flooding or temporarily empty.
We can discuss the property, tenants and cover needed before approaching insurers from our panel. Acceptance, price, excesses and policy terms will depend on the full details and the insurer’s requirements.
Before buying cover, check the policy wording and schedule. Make sure you understand the insured events, limits, exclusions, excesses and any conditions that apply while the property is let or empty.
