Landlord insurance vs home insurance: what changes when you let
Once a tenant moves in, most home insurance policies stop fitting the property. This guide compares landlord and home insurance,…
Landlord insurance is a type of property insurance that protects landlords’ commercial interests. It is designed to cover a wide range of potential risks and liabilities that landlords may encounter when renting out domestic or commercial property. Typically, insurance for landlords isn’t a single, standardised insurance product; it is specifically tailored to meet your needs as a buy-to-let property owner by combining several types of insurance to protect you from a range of ‘insurable risks’. Landlord policies not only cover your building and personal property but also protect you against damage to other people’s property or physical injuries for which you could be held liable.
Landlord insurance isn’t one single policy; it is made up of different types of cover depending on:
1 – What you’re insuring as a landlord, whether that is your income, property, or liability.
2 – Who you’re renting to, and how your property is used, the type of cover you need differs for short-term and long-term lets.
Most providers will let you choose from the following types of cover:
Building Insurance is a specialised type of insurance for property owners who rent out their buildings. Designed to cover the structure of your building against damage from fire, theft, vandalism, or accidental damage.
Liability insurance covers the cost of legal fees and compensation if a tradesperson, a tenant, or any of their guests is injured or has their belongings damaged because of your property.
Rent Guarantee Insurance will cover the loss of any rental income if your tenant stops paying their rent.
The type of insurance you need depends on the kind of property you own. These popular landlord policies will help cover you for several types of rental properties.
Rental property insurance is a general type of cover for your standard buy-to-let properties.
HMO insurance is a specialist type of tenancy property insurance for landlords who are renting a property to multiple tenants who share communal areas of the rental.
This type of cover is designed for multiple rental properties under one policy.
This covers landlords who own and rent a block of flats, or a house converted for multiple occupancy.
Depending on the type of tenants you have, landlords can usually choose a policy that covers their specific needs.
DSS Landlord cover is designed to protect you when renting to tenants receiving housing benefits.
This type of cover helps protect landlords renting to students, who face additional risks due to more frequent tenant turnover.
That depends on the level of cover you’ve opted for. A comprehensive policy typically covers a wide range of risks, but don’t presume you’re fully covered. It’s best to shop around to find a deal that covers your main concerns.
Landlord insurance is not a legal requirement in the UK, but whether you own a single Airbnb apartment, several houses in different parts of the country, or an entire block of flats, this type of insurance policy is a wise investment, even though it is optional, because it can help ensure you’re protected against a wide range of potential risks. If you didn’t have insurance in place and something went wrong with your rental property, you’d have to cover the cost of repairs, liability claims, or legal proceedings yourself. It’s also worth bearing in mind that some lenders make insurance a requirement in their mortgage agreement, so if you have a buy-to-let mortgage, it’s worth double-checking your policy documentation to see if you are required to take out an insurance policy for your buy-to-let property.
Few landlord policies are the same, so it’s difficult to provide an average cost. However, we recommend using our comparison system to get quotes from various insurers to understand your potential costs. Several factors will influence the overall cost of your policy, including:
Renting out your property to others can naturally come with risks. Although it is a great way of making passive income, you still face potential risks by granting access to your property to others. These can include the following:
If your tenants damage your property, you may be unfortunate enough to be left in a position where the deposit is not enough to cover the cost. In some instances, a tenant may damage a property so severely that a claim is the only option to cover the damages.
Fire, flooding, extreme weather events, and structural compromise are all risk factors that any property owner needs to contend with. These are typically insurable events and so will be covered under most policies.
Landlords may find themselves embroiled in disputes with their tenants over the property, which can lead to the accumulation of legal fees. Not adhering to rules and regulations around renting out your property can lead to legal issues with the local council and government bodies. For more information on your responsibilities as a landlord, please refer to the gov.uk.
You could be held liable for injuries or damages to tenants if they can prove your rental property caused them. If the property is deemed unsafe or below living standards, you may face costly legal claims and settlements.
If your tenant is defaulting on their rent, you can expect to take a financial hit, especially if utilities are all-inclusive in the agreed rent. There is also the issue of not being able to advertise the room for a new tenant until the current occupant has left your property.
Landlords are obligated to fix and maintain the property even while tenants are in occupancy.
Most insurers will also let you tailor your policy by adding on extra features for example:
Protects your rental property if you’re in-between tenants and the building is empty.
Having a contents insurance policy as the landlord means any possessions owned by you in your rental properties are protected. If you are renting out unfurnished properties, this type of coverage is unnecessary.
Also known as tenant default insurance. This compensates you for the lost income if your tenant stops paying their rent due to an insurable event.
This compensates you if your tenant is forced to move out because there is something wrong with the property, for example if the building was damaged by fire.
Can cover emergencies like burst pipes, power outages and even broken windows and doors if they pose a risk to your property’s security.
Covers any accidental damage to your property or contents you supply, for instance, if a spot of DIY results in a damaged wall or if someone spills red wine over the carpet.
Covers the cost of taking your tenant to court – for example if you need to evict them or they stop paying their rent.
Compensates you for any deliberate damage caused in bad faith by your tenant.
At Quotezone.co.uk, we make it easy to compare commercial landlord insurance. Whether you want to insure one house or a portfolio of properties, just answer a few questions, and we’ll get you quotes from a wide range of insurers – it’s as simple as that.
The best insurance policy for you is one that meets your specific needs – so it’s a good idea to have a list of ‘must-haves’ before you start comparing for discounts. That way, you can be confident about finding a policy that gives you the all-round protection you need.

“Most standard landlord policies won’t pay out if the property is left unoccupied for an extended period, and the clock usually starts the day a tenant moves out, not the day a refurbishment finishes. If you’re between tenants for any length of time, you typically need unoccupied property cover added, or a policy with an extended void clause.”
Lee Evans, Insurance Expert, Quotezone
Good value site when renewing your insurance.
Peter Elvin
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