TL;DR
Landlords face growing insurance gaps as new regulations require specific policy types that standard buy-to-let policies may not cover. The Renters Reform Act and new EPC requirements have created coverage gaps that could leave both landlords and tenants unprotected following a claim. Landlords should review policies before 2027 regulatory deadlines.
Last reviewed: June 2026 | Sources: FCA, ABI, GOV.UK
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What is changing for landlord insurance
Landlords across England face a combination of regulatory changes that are creating gaps in existing insurance policies. The Renters (Reform) Act, new energy efficiency requirements and tightened licensing rules for houses in multiple occupation have altered the risk profile of rental properties in ways that standard buy-to-let insurance policies, written before these regulatory changes, may not fully address.
The core issue is that standard landlord policies were designed around a regulatory environment that is being substantially revised. Policy exclusions, liability clauses and coverage limits that were adequate under the previous framework may leave landlords exposed under the new one — and in some cases, tenants too.
The Renters Reform Act and insurance liability
The Renters (Reform) Act, which has been phased in since 2025, abolishes Section 21 no-fault evictions and introduces a new system of grounds for possession. It also introduces an Ombudsman for the private rental sector and a property portal requiring landlords to register all rental properties.
These changes affect insurance in several ways. Liability insurance for landlords needs to reflect the new legal landscape around tenancy termination, as the grounds on which a landlord can legitimately end a tenancy have changed. Legal expenses insurance — a common add-on to landlord policies — needs to cover the new grounds-based possession process, which differs substantially from previous Section 21 proceedings. Policies written before the Act may not cover legal costs arising from the new regime.
Landlords should check that their legal expenses insurance specifically covers possession proceedings under the reformed system, not just Section 21 claims which are no longer available.
EPC requirements and property insurance gaps
The government has confirmed that rental properties will need to achieve an Energy Performance Certificate rating of C or above for new tenancies from 2028 and all tenancies from 2030. Properties currently rated D or below will need improvement works — insulation, heating upgrades or other measures — to meet the new standard.
During improvement works, standard landlord insurance coverage may be affected. Many policies exclude or restrict coverage during major renovations. Landlords planning EPC improvement works should notify their insurer before works begin and confirm that the policy remains in force during the works period. Where coverage lapses during works, the property and any tenant belongings may be uninsured.
Buildings insurance requirements may also change as properties are modified. Heat pump installations, for example, may require policy updates to reflect the changed heating system. Solar panel installations are a specific area where standard policies often require explicit endorsement rather than automatically covering new installations.
HMO licensing and insurance requirements
Houses in multiple occupation require mandatory licensing from the local authority where five or more people from two or more households share facilities. Many local authorities have introduced additional licensing schemes covering smaller HMOs. Licensing conditions typically specify minimum insurance requirements that may exceed what a standard buy-to-let policy provides.
Operating an HMO without the required insurance — or with insurance that does not meet the licensing conditions — can result in licence revocation and civil penalties of up to £30,000. Landlords with HMO properties should obtain a copy of their licence conditions and check these against their insurance policy before each renewal.
What landlords should check now
Review your current policy against the following specific points. First, confirm that legal expenses insurance covers possession proceedings under the Renters Reform Act, not just Section 21. Second, check the policy position during improvement works, particularly EPC improvement works planned before 2028. Third, if you operate an HMO, compare your policy against the insurance requirements in your licence conditions. Fourth, check that any recent property modifications — heat pumps, solar panels, new roofing — are explicitly covered rather than assumed to be included.
If any of these areas are unclear, request written confirmation from your insurer rather than relying on verbal assurances. A written policy endorsement is legally effective; a verbal confirmation from a call centre agent is not.
What tenants should know
Tenants are not covered by landlord insurance for their personal belongings. Landlord buildings insurance covers the structure and the landlord's fixtures and fittings, not tenants' possessions. Tenants should hold their own contents insurance. If a landlord's property is underinsured and a significant event such as a fire or flood occurs, tenants' right to continued occupation and alternative accommodation will depend on whether the landlord's policy includes loss of rent and alternative accommodation cover for tenants.
Tenants who become aware that a landlord may be operating without valid insurance should contact the local authority's private sector housing team. Operating a rental property without adequate insurance may breach licence conditions where the property is licensed.
Landlord Insurance: Key Coverage Areas to Check
| Coverage Area | What to Check | Why It Matters Now |
|---|---|---|
| Legal expenses | Covers Renters Reform Act possession grounds | Section 21 abolished — new grounds apply |
| Works coverage | Property insured during EPC improvement works | EPC C required by 2028/2030 |
| HMO compliance | Meets licence condition minimums | Civil penalties up to £30,000 |
| Heat pump/solar | Explicit endorsement for new installations | Standard policies often exclude |
| Loss of rent | Covered if property uninhabitable | Regulatory works may make property unlettable |
| Tenant liability | Landlord liability to tenants updated | Renters Reform Act changes liability landscape |
Source: FCA consumer guidance, ABI landlord insurance guidance, GOV.UK Renters Reform Act
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Disclaimer This article is for information only and does not constitute insurance advice. Landlords should review their specific policy with their insurer or an FCA-authorised insurance broker. |
Frequently asked questions
Does my landlord insurance automatically cover the Renters Reform Act changes?
Not necessarily. Policies written before the Act may use outdated language around tenancy termination and possession proceedings. Check specifically that legal expenses insurance covers possession under the new grounds-based system, not just Section 21 proceedings which are no longer available.
Do I need to notify my insurer before doing EPC improvement works?
Yes. Most policies require notification of works above a certain value. Failure to notify can void coverage during the works period. Contact your insurer before any significant works begin and obtain written confirmation that coverage continues during the works.
What insurance does an HMO licence require?
HMO licence conditions vary by local authority. Common requirements include minimum buildings insurance of a specified amount, public liability insurance, and in some cases, specific coverage for shared facilities. Obtain your licence conditions document and check these against your policy at each renewal.
Can a landlord be fined for having inadequate insurance?
Where a property requires an HMO licence and the licence conditions specify minimum insurance requirements, operating with inadequate insurance can breach the licence conditions. Local authorities can issue civil penalties of up to £30,000 for serious licence breaches and can revoke the licence.
What should tenants do if they think their landlord has no insurance?
Tenants cannot compel a landlord to hold insurance unless the property is licensed under an HMO scheme where insurance is a licence condition. If the property is licensed, report concerns to the local authority's private sector housing team. Tenants should always hold their own contents insurance regardless of the landlord's policy.
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Sources GOV.UK: Renters Reform Act |
