Do I Need Landlords Insurance?

Learn the importance of landlords insurance and whether it's a must-have for your rental property investment.

Learn the importance of landlords insurance and whether it's a must-have for your rental property investment.

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Types of landlords insurance

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Benefits of landlords insurance

Landlords insurance ensures you are protected against damage to your buildings and your contents. See our landlord insurance webpage for more details.

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Why do I need landlords insurance?

Whilst it is not a legal requirement, the risks of not having landlords insurance are significant if something goes wrong.

Some mortgage lenders will require that you take out landlords insurance before you invest in a buy to let property.

It provides peace of mind that your property is protected against damage to the building or your contents.

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What is the difference between landlord insurance and standard home insurance?

You may not feel or operate like a business, but by earning money through rent, you are for insurance purposes classified as one. While buildings insurance is standard with both insurance types, home insurance is not always suitable for a property which is let out, nor is it designed for the needs of a landlord.

There will be gaps cover and won’t cover you adequately for the liability, legal and loss of rent options available on a landlord’s policy. Furthermore, renting and not telling your home insurer could invalidate your home insurance. To protect your earnings and your material assets, it’s sensible to choose a landlord insurance policy as soon as you start renting out your property.

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Is landlord insurance a legal requirement?

While landlord insurance is not a legal requirement, your mortgage lender may require that you do so. Also, the responsibilities in your tenancy agreement may be best served by an insurance agreement, especially to avoid putting your financial future at risk.

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What happens if I don't have landlords insurance?

Owning a building without building insurance leaves you very exposed to large potential losses arising from a serious fire, storm or flood. It’s not just the damage to the building that must be considered. What about the loss of rental income you would suffer during the period the property cannot be occupied?

Re-building a property following a large fire can be a complicated and extended matter for a whole variety of reasons. Planning and unexpected delays caused by weather or a shortage of building materials which is very common following the covid pandemic can extend the rebuilding periods. This can run to 24 or 36 months, so it’s very important to take this fully into account. In some listed properties, there can be unexpected archaeological finds whilst excavating foundations which cause additional unexpected delay, due to the historical interest created.  

Taking out landlord insurance isn’t a legal requirement, but most mortgagors for buy-to-let properties will require you to arrange a buildings insurance policy as a protection against amount of the mortgage or bank loan arranged.

Renting out a property comes with its own unique set of risks. Without landlord insurance to protect you, you’re vulnerable to loss of rent and any legal claims from members of the public for accidental bodily injury or damage to their belongings arising at the property. 

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How much does landlord insurance cost?

The cost of your landlord insurance will depend on many factors. Everything from the type of cover you need,  to the property’s location, construction, occupation and values to be insured.

See more information on our landlord insurance page.

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What if my tenant has renters insurance?

Renters' insurance only covers the belongings owned by your tenant. Anything you own that your tenant uses should be covered by your own landlords insurance

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Can I use my homeowners insurance for rental property ?

No - some mortgage lenders need you to buy landlords cover if you are purchasing a property to rent out to tenants.

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Landlords insurance from Towergate

We provide landlord insurance for a wide range of properties and tenants including multi occupancy, students, local authority placements, unoccupied and much more. See our landlord insurance page or call 0333 060 0915 for more.

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Commercial property insurance from Towergate

We can offer cover for a range of commercial properties from our trusted network of leading insurers.

You can place just one commercial property or a whole portfolio under one policy, including standard and unoccupied residential and mixed-use buildings.

Get a commercial property insurance quote, call us on 0330 828 0512 or request a callback.

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About the author

Alison Wild Bcom Hons MAAT MATT Taxation Technician Commercial Tax Pensions Insurance And Marketing Specialist AuthorAlison Wild BCom (Hons), MAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has 20 years' experience as a residential landlord.