Landlord Insurance

What is landlord insurance and why is it important?

Landlord insurance offers you protection for the property that you rent out to tenants. Landlord insurance is vital but not legally required. However, landlord insurance covers the cost of damage to your property and protects you from losing money on such events as loss of rent, damage by tenants and unauthorised alterations.

Landlord insurance protects your investment and your income. The expense of the insurance premium will vary based on the cover required: you need to find the right balance between the preferred level of cover and the premium you pay.

Landlord insurance is not suitable for holiday lets or serviced accommodation, so a different, specialised insurance is required to protect your property in that case.

Landlord insurance vs home insurance

Landlord insurance is very similar to home insurance, however, standard home insurance covers owner occupied properties and may not cover properties where tenants reside. Therefore, landlords need to have specialist insurance cover, to protect against specific issues that landlords might face. A regular home insurance policy might not cover any claims you make or conversely claims made against you.

Residential landlords of furnished rental properties will need both specialist buildings’ cover and contents’ cover. Both of these should be included in a comprehensive landlord insurance policy. The cover available will vary from insurance provider to provider, however you can find policies to suit your requirements and the level of protection that you would prefer.

Landlord insurance explained

Landlords’ building insurance: to protect the property by covering the cost of repairing or rebuilding it in the event of damage caused by fires, natural disasters, or flooding.

Landlords’ contents insurance: to protect the furniture and furnishings against tenant damage, theft, and other problems. This is an optional extra, recommended if the property is rented furnished.

Property owners’ liability insurance: if a tenant has an accident in the property and claims for their injuries.

Loss of rent cover: to cover mortgage if a tenant defaults on their payments, up to £2,500 per month for a period of eight months.

Many mortgage lenders make landlord insurance a requirement of taking out a buy-to-let mortgage, so it is important to find that out early on in the process to allow yourself enough time to find the right insurance cover. It is recommended to find out as much as you can about your tenants as some insurance providers may offer better deals if the tenants are deemed ‘safer’ so may ask about age, relationship, occupation etc.

It is advised to seek professional advice to ensure that the level of cover required suits your affordability, your property, and the risk level of your tenants.

Expert landlord insurance advisers

Our advisers at Active are specialised in finding landlord insurance deals for clients, however unique or complex their situation might be. We will take the time to find out as much as we can about your investment and what insurance cover you need and can afford. Our expertise and experience mean we provide quality advice to guide you through the process and find a landlord insurance deal to suit your needs. Booking a consultation is easy… let Active make it happen for you.

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