Landlord Insurance — What You Need to Know

Landlord insurance is a specialist insurance policy designed for property owners who rent out their properties. It typically combines buildings insurance (covering the structure of the property), contents insurance (covering landlord-owned furnishings), liability insurance (covering claims from tenants or visitors), and optional extras such as rent guarantee insurance and legal expenses cover. Standard home insurance does not cover rental properties — you need a specialist landlord policy.

Rent guarantee insurance (also called rent protection insurance) covers landlords if their tenant stops paying rent. It typically pays out the monthly rent for a set period (usually 6–12 months) while possession proceedings are underway. Most policies require the landlord to have carried out tenant referencing and credit checks before the tenancy started. Some policies also include legal expenses cover for eviction proceedings.

Legal expenses insurance (also called landlord legal protection) covers the legal costs of pursuing possession proceedings, recovering rent arrears, and defending claims by tenants. It typically covers solicitor's fees, court fees and barrister's fees up to a set limit (usually £50,000–£100,000). Many landlord insurance policies include legal expenses cover as standard or as an optional add-on. We work with landlords whose legal expenses are covered by insurance.

Many landlord insurance policies include legal expenses cover that pays for eviction costs — including solicitor's fees, court fees and enforcement costs. The extent of cover varies between policies. Some policies require the landlord to use a panel solicitor; others allow the landlord to choose their own solicitor. We advise landlords on their insurance cover and work with insurers on panel and off-panel instructions.

Landlord insurance is not a legal requirement, but it is strongly recommended. Standard home insurance does not cover rental properties and will not pay out if you make a claim while the property is tenanted. Without landlord insurance, you could face significant uninsured losses from property damage, liability claims, or rent arrears. Many mortgage lenders also require landlord insurance as a condition of a buy-to-let mortgage.