If you let out a property, the home insurance that covered you as an owner-occupier will not do the job, and may be void on a claim. Landlords need specialist cover. This guide explains landlord insurance in plain English: what it covers, why ordinary home insurance is not enough, and what it costs.

What landlord insurance is

Landlord insurance is specialist cover designed for property that is rented out. It protects the building, and often the landlord's contents and income, against the risks of letting, and it covers liabilities that arise from being a landlord. Because letting changes the risks compared with living in a home yourself, insurers treat it as a different product. A standard home insurance policy is not built for a let property and usually will not respond if you claim.

Why standard home insurance will not do

The key point many new landlords miss is that a normal home insurance policy generally becomes invalid the moment you let the property to tenants. If you rely on it and then claim, the insurer can refuse to pay, leaving you to cover the loss yourself. So if you let a property, you must switch to a proper landlord policy. This is not an optional upgrade; it is what keeps your cover valid as a landlord.

Buildings cover for landlords

The core of most landlord policies is buildings cover, protecting the structure of the property against events like fire, flood, storm, escape of water, subsidence and vandalism. As with any buildings cover, it is based on the rebuild cost, not the market value. For leasehold flats the building is often insured by the freeholder, which changes what you need, as our guide to buildings insurance for landlords and leasehold flats explains.

Contents cover for landlords

If you let a property furnished or part-furnished, landlord contents cover protects the things you provide, such as furniture, white goods, carpets, curtains and blinds. It covers the landlord's belongings, not the tenant's, who would need their own contents insurance. For an unfurnished let there may be little to insure, but even then there are often some landlord's fixtures and fittings worth covering, so it is worth checking what the policy includes.

Property owners' liability

A vital element is property owners' liability cover, which protects you if a tenant or visitor is injured, or their property damaged, because of a defect in your building, and you are held legally responsible. Cover is typically a few million pounds, often £2 million to £5 million, sometimes up to £10 million. With laws holding landlords responsible for property defects, a serious injury claim can be very costly, so this cover matters a great deal.

Loss of rent

Many landlord policies include loss of rent cover, which pays your rental income if the property becomes uninhabitable after an insured event such as a fire or flood, while it is being repaired. This is important because you could lose months of income through no fault of your own. Note that this is quite different from rent guarantee insurance, which covers a tenant simply not paying, as set out below.

Rent guarantee and legal expenses

Rent guarantee insurance, often paired with legal expenses cover, protects your income if a tenant stops paying their rent, and can cover the cost of pursuing or evicting them. This is separate from loss of rent and is increasingly valued given changes to the law around ending tenancies. Our guide to rent guarantee and tenant default insurance explains how it works and its conditions in detail.

Landlord emergency cover

Some policies offer landlord emergency cover, which arranges and pays for urgent help if something like the boiler, heating or plumbing fails, sending a contractor to deal with the immediate problem. For a landlord, who must keep a property safe and habitable for tenants, this can be a useful add-on, saving you scrambling for an emergency tradesperson. As with all extras, weigh the cost against how likely you are to need it.

Is it a legal requirement?

Landlord insurance is not, in itself, required by law. However, if you have a buy-to-let mortgage, your lender will almost certainly require buildings insurance as a condition of the loan. And given the liabilities of letting, going without proper cover would be a serious risk. So while no law forces you to buy it, in practice almost every landlord needs it, both to satisfy a lender and to protect themselves.

What it costs

Premiums vary with the property and cover, but a standard buy-to-let policy often costs somewhere around £150 to £300 a year, rising to £350 to £600 or more for a house in multiple occupation, which carries higher risks. The price depends on the property's rebuild cost, location, type, the tenants and the cover you choose. As always, comparing policies on cover as well as price is the way to find good value.

The changing rental landscape

The rules around letting in England have been changing, with reforms affecting how tenancies are ended and raising landlords' responsibilities for property condition. This has made cover for legal expenses, rent guarantee and liability more prominent in landlords' thinking. Keeping your cover under review as the law evolves, and making sure it reflects your obligations, is sensible. The detail of the law is beyond this guide, but it shapes what cover landlords now prioritise.

Tenant type and your cover

Insurers take account of who you let to, and some tenant arrangements affect availability or price. Lets to certain groups, or houses in multiple occupation, can be treated differently or priced higher because of the risks involved. When arranging cover, describe your tenancy honestly, including the type of let and tenants, so the policy matches reality. Misdescribing the arrangement to get a lower price could leave a claim unpaid, which defeats the purpose of having cover at all.

Reviewing cover as your portfolio grows

If you build a portfolio of rental properties, it is worth reviewing how you insure them. Some landlords insure each property separately, while others use a portfolio policy covering several properties under one arrangement, which can be simpler to manage and sometimes cheaper. Whichever route you take, make sure each property has adequate buildings cover, liability and any income protection you need, and keep the sums insured up to date as values and rents change over time.

In short

Landlord insurance is specialist cover for let property, and standard home insurance is usually void once you let. It centres on buildings cover, with optional contents, property owners' liability, loss of rent, rent guarantee and emergency cover. It is not required by law, but mortgage lenders insist on buildings cover. A buy-to-let policy often costs around £150 to £300 a year, more for an HMO. Match the cover to your property and obligations.

Where to get help and next steps

Read our guides to buildings insurance for landlords and leasehold flats, rent guarantee and tenant default insurance, and public liability insurance. This is general information, not financial or legal advice.