Landlord insurance provides insurance cover for any properties you rent out.
Must I have landlord insurance?
There is no legal obligation to have landlord insurance, but if you are renting out a property, standard home insurance would not cover you.
If you have a mortgage on the property, then the lender may insist upon you having the correct insurance. Their permission may also be needed to let the property.
Do I have to cover the tenants’ belongings?
Landlord insurance should cover any items contained in the property that are there for the use of tenants. It’s down to tenants to arrange their own cover for items that belong to them, though.
What type of costs would landlord insurance cover?
- Loss of rent. e.g. if a flood or fire meant the tenants had to move out, and you need the income to pay the mortgage
- Malicious damage. e.g. if a tenant deliberately damaged, broke or stole either the property or its contents
- Landlord liability. e.g. if a tenant tripped on loose carpet and became injured, or their belongings were damaged in a fire or flood. This can also cover any claims made by tradespersons working at the property.
- Rent guarantee, which can replace unpaid rent to pay the mortgage.
- Home emergency. e.g. this can cover plumbing, drainage, security, vermin and more, and is especially useful where the property has no managing agent
- Key care. e.g. if keys are lost, stolen or broken, this can cover the cost of new locks and keys and the services of a locksmith.