When a property is let out, the risks are higher than is the case with a property lived in by the owner. Sensible landlords cover those risks, but available policies vary greatly in the level of cover they provided and cost. This means it is essential to check what is covered, what is not, and to compare carefully one policy with another.

Firstly, it’s essential that before taking ownership of any property, you must arrange to have the buildings insured. If you’re getting a mortgage, your lender will insist that insurance is in place, will ask to see proof of the policy, and to be noted as an ‘interested party’. For flats, the insurance will normally be arranged by the freeholder.

Specialist buy to let mortgage companies and most landlords’ associations have home insurance policies designed with landlords in mind. If you are a member of a landlord association you can expect its offer to be competitive. This is partly because of a volume discount but bear in mind that the association itself will benefit with a commission (which effectively has to be paid for from the premium), so terms and cover may have been adjusted accordingly. Also as policy offers differ, you may find that your particular circumstances can be better catered for elsewhere.

Insurance brokers, who will be able to discuss your needs in detail, will probably be able to offer a range of cover including tailored policies for larger landlords. You can find a list of specialists on the Residential Landlord landlords insurance section.

If you are only providing limited furnishings and don’t want to go to the expense of getting a separate contents policy, look for buildings insurance policies that include a small amount of contents cover.

Check that cover for loss of rent, temporary accommodation and storage of furniture following fire or water damage is provided within the policy. Usually it will be, but it’s essential to check just in case.

Most specialist landlord policies will include cover for public and employers liability up to at least £5m. This is essential and is normally included as standard even in domestic home insurance policies. But, again, check that it’s covered anyway. It’s worth keeping in mind that even if you just pay a friend to do a job for you, you are establishing a contractual relationship in law.

Also useful is a 24-7 emergency assistance feature, especially one which covers the cost of emergency call outs. These are really worth getting because the insurer will send out its emergency tradesmen to perform an initial fix, with the cost covered up to a certain amount. This will save you having to buy separate emergency cover, which in my opinion, is usually expensive.


If your insurance has emergency assistance, ask about service standards – for example, how quickly somebody will be on site to do the fix. If, say, you have a flood, you want the problem dealt with that day, not next week.

Check the policy exclusions too. Some policies won’t cover students, people on housing benefit, asylum seekers, short term lets, or properties let to social landlords such as housing associations or local councils. Most policies will insist the property is let on an assured short hold tenancy.

Where a property is unoccupied for more than a short period – typically between seven and 14 days – the insurer will normally insist on being told.

In general, where the insurer perceives the risk is higher, it may still offer cover but charge a higher premium, insist on a higher excess, or exclude certain risks.

Malicious damage by tenants is usually not covered, even under special landlords’ policies. So even if you end up hating the tenants, don’t do anything that may lead them to trash the property as you won’t be able to recover the money from your insurer.

If you’re a nervous first time landlord with a big mortgage, it might be worth considering a rent guarantee policy which will pay your rent if the tenant defaults. Typically they cost about 3 per cent to 4 per cent of the rent and pay for up to 12 month’s rent, although they usually don’t kick in until rwo month’s rent has been missed. They will require you to take certain steps before a claim will be entertained. One of these will be to hand over the eviction process to the insurer’s lawyers.

If you buy a rent guarantee policy, check whether it also covers the cost of legal expenses to evict the tenant. I have never taken out a rent guarantee policy because I’m confident my vetting procedure will weed out tenants who can’t or won’t pay. I’ve also found that to qualify, the tenant has to score so highly on the insurance company’s own credit scoring system that the chances of them defaulting would be very low anyway. However, I’ll admit they do give useful peace of mind (though at a cost).

The level of excess (or deductible loss) on a specialist landlord policy varies from about £100 to £250 for normal claims, although it’s normally £1,000 for subsidence claims. Landlords with flats should bear in mind that block buildings policies tend to have higher standard excesses ranging from £250 to £500 with no contents cover extension at all – so your carpets and curtains will be at risk if you don’t have separate cover. If you have a flat, ask to see the block policy document and schedule to check what you are covered for.

It’s worth telling tenants that you aren’t responsible for any accidental damage that they do, nor for damage to their own possessions whatever the cause. I always make this clear in writing and advise my tenants to take out contents cover for their own possessions, and advise them to ensure their policy includes accidental damage cover too. That way, my own things are partly covered too.

If you’re letting what used to be your own home, your current cover will almost certainly not be suitable. Most domestic insurance policies do not cover rented property at all, so if the property used to be your home, tell your insurer the property is being let and ask if it provides a suitable specialist landlord policy. If it can, check it against cover from other providers too.

When you make a claim, keep a record of the amount and date and how much it is for. When you take out new insurance, the insurer will ask for information on previous claims so it’s good to have these details to hand.

Home insurance policies won’t pay for replacement taps, toilets or boilers, though they usually pay for ‘trace and access’ to find the source of a leak. So, tell your plumber or boiler repairer to include ‘trace and access’ as a separate item on his invoice if this is part of the work done.

If you have an emergency that gives rise to a claim, it’s essential to keep your tenant informed and involved. He or she should give you access to fix things, but don’t enter without consent except in an emergency. If the tenant has to move out while things are being redecorated, you should reimburse him or her the rent for that period, then reclaim the cost from your insurance company. Finally, keep a record of all quotes obtained and of all correspondence – written or verbal – with your insurance company. These will be useful if you end up in dispute.