A tenanted property is rented to and occupied by tenants, so the owner may need insurance designed for landlord risks.
A tenanted property is a house or flat that a landlord rents to one or more tenants. The tenants live in the property under a tenancy or rental agreement.
The term describes how the property is occupied. It is not the name of one set type of insurance.
A tenanted property could be rented to one household. It could also be shared by people from separate households. A shared property may be classed as a house in multiple occupation, or HMO. Some HMOs need a council licence.
The landlord should check the rules that apply where the property is located.
An insurer needs to know that a property is rented out. Tenant occupancy may affect the risks, price, conditions and exclusions that apply.
A standard owner-occupied home insurance policy may provide restricted cover when a home is let to tenants. The landlord should check the policy and contact the insurer before tenants move in.
In England, a landlord with a mortgage must get permission from the mortgage lender. The landlord should check the mortgage and insurance terms before letting the property.
The duty depends on the type of policy. For consumer insurance, section 2 of the Consumer Insurance (Disclosure and Representations) Act 2012 requires the customer to take reasonable care not to make a misrepresentation. For non-consumer insurance, part 2 of the Insurance Act 2015 requires the insured to make a fair presentation of the risk.
Give complete and accurate information about the tenants and how the property is used. Wrong or incomplete information may affect the policy or a later claim.
Landlord buildings insurance may cover the property’s structure and permanent fittings against insured events such as fire, storm, flood or escape of water.
The landlord may also need landlord contents insurance for furniture, appliances or other items supplied for the tenants to use.
The tenant’s own belongings are not usually covered by the landlord’s policy. Tenants may wish to arrange their own contents insurance.
Depending on the policy, landlord insurance may offer cover for:
Rent guarantee insurance is different from loss of rent cover. It may help when a tenant does not pay, but it is often optional and may require references, affordability checks and other conditions.
Cover varies between insurers. Limits, excesses, exclusions and claim conditions should always be checked in the policy documents.
An insurer may ask about:
A property may have reduced cover if it is empty for longer than the period stated in the policy. Landlords should tell their insurer when required and check whether they need unoccupied home insurance between tenants.
Policies may also include conditions for inspections, maintenance, locks and tenant checks.
Landlords should check the rebuild cost, sums insured, excesses and cover limits. They should also review exclusions for wear and tear, poor maintenance and gradual damage.
Insurance does not replace a landlord’s legal duties. Landlords remain responsible for repairs and safety requirements that apply to the property.
Leasehold owners should check whether the freeholder or managing agent already arranges the buildings insurance.
We arrange insurance through insurers for a range of rental properties. This may include standard lets and more complex properties, such as listed buildings, homes in flood-risk areas or properties that are empty between tenants.
The cover available will depend on the property, its occupants and the full details provided. We can explain the available options, limits and conditions, but cover and acceptance remain subject to the insurer’s terms.
