TL;DR
Standard home insurance does not cover rental properties. Landlord insurance covers buildings, liability and in some cases loss of rent, but the specific cover required depends on whether the property is occupied, the tenancy type and the property construction. Failing to hold appropriate landlord insurance can void a mortgage condition and leave you personally liable for significant losses.
Last reviewed: June 2026 | Sources: FCA, ABI
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Insurance Key Facts: Landlord Insurance Standard home insurance: does not cover rentalsCore cover: buildings, liability, loss of rentMortgage condition: most BTL mortgages require landlord insuranceTenancy type: affects available coverRegulator: FCA |
What landlord insurance covers that standard home insurance does not
Standard home insurance excludes properties let to tenants. Landlord insurance provides buildings cover for a property occupied by tenants, including cover for tenant damage (typically on accredited tenancy agreements), property owner's liability for third-party injury or property damage, and loss of rent if the property becomes uninhabitable. Contents cover for landlord's fixtures and furnishings is typically optional.
The risks most people do not check before buying
Your BTL mortgage may require specific landlord insurance. Most buy-to-let mortgage conditions require appropriate buildings insurance to be maintained. Holding the wrong type of insurance or allowing cover to lapse can constitute a breach of mortgage terms, giving the lender grounds to demand repayment of the mortgage.
Void periods change your cover requirements. Many landlord policies include void period conditions: if the property is unoccupied for more than 30 to 60 consecutive days, cover may be restricted or voided. Notifying your insurer of void periods and purchasing extended void cover if needed is essential, particularly between tenancies.
HMO and multi-occupancy properties have different requirements. Houses in multiple occupation licensed under the Housing Act 2004 require specific HMO landlord insurance. Standard landlord policies may exclude or restrict cover for HMO properties.
Tenant type affects premium and availability. Insurance for properties let to housing benefit claimants, DSS tenants or students carries higher premiums with some insurers and may be excluded entirely by others. Disclose the tenancy type accurately at application.
What to verify before buying
Confirm what the policy covers during void periods and what the maximum void period is before notification is required. Check whether accidental damage by tenants is included or is an optional extra. Verify that the rebuild cost used for buildings insurance accurately reflects the cost of rebuilding the property, not its market value.
Where to complain
Disputed landlord insurance claims go to the Financial Ombudsman Service after the insurer's internal complaints process.
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Disclaimer This article is for information only and does not constitute regulated financial advice. Always verify current terms with relevant providers and seek regulated advice for your specific circumstances. Kael Tripton Ltd is an independent editorial publisher and is not regulated by the FCA. |
Frequently asked questions
Does landlord insurance cover malicious damage by tenants?
This varies by policy. Some landlord policies include malicious damage by tenants as standard; others offer it as an optional extra; some exclude it entirely. Check the specific policy wording, particularly the exclusions relating to tenant damage.
Do I need landlord insurance if the property is mortgage-free?
You are not legally required to hold landlord insurance, but it is strongly advisable. Property owner's liability cover within landlord insurance protects you against personal injury claims from tenants or visitors, which can be very significant without insurance.
Can I use standard home insurance for a short-term let?
No. Short-term letting on platforms such as Airbnb is typically excluded from standard home insurance. Specialist short-term let insurance or a specific endorsement from your home insurer is required.
What is a property owner's liability and do I need it?
Property owner's liability covers you if a tenant, visitor or member of the public suffers injury or property damage as a result of a defect in your property. Claims can be substantial and this cover is strongly advisable for all landlords.
Does landlord insurance cover rent guarantee?
Rent guarantee insurance covers loss of rent where a tenant defaults. It is available as an add-on to some landlord policies or as a standalone product. It typically requires a tenant reference check as a condition of cover and has waiting periods before a claim can be made.
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Sources FCA: Landlord Insurance Information |
