Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

The MoneySaving Forum: join to chat & swap tips with other MoneySavers. Learn how in the Forum Introduction Guide

Landlord Insurance

Get cheap cover if you're renting out a property

Get Our Free Money Tips Email!

For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out

Sally | Edited by Sam D

Updated January 2017

intro landlord

If you're one of the UK's two MILLION people who rents out a home to tenants then landlord insurance is worth considering. It's not compulsory but can prove useful, so we show you how to get it cheapest.

We've a host of tips to help you decide if it's right for you, including what it covers. Importantly, this guide is for residential landlords who rent out homes, not commercial landlords letting out offices or shops. It is also for landlords who let their homes for long periods (usually defined as six months or more), NOT for Airbnb-style short-term lets.

This is the first incarnation of this guide. Please tell us your experiences in the landlord insurance discussion.

Landlord insurance explained: The five need-to-knows

Landlord insurance is not compulsory – think of it as souped-up home insurance to cover extra perils such as non-payment of rent or damage by tenants – but it can be very costly to go without it if disaster strikes. Our tips help you decide if it's right for you.

row houses

It is NOT a legal requirement but without it you may not be covered if you have tenants

If you're going to be a landlord, you won't be breaking the law if you don't take out specialist insurance. However, if you rent out a property to any kind of tenant and want to be protected in case anything goes wrong, standard home buildings and contents insurance usually won't cover you – you'll need a landlord policy instead.

This is because insurers view the risk of renters living in your property – and the chances of them making a claim on an insurance policy – very differently to you, the owner, living in it instead. Two young students who enjoy socialising renting a flat, for example, pose a greater claims risk to an insurer than an older professional couple who own their property.

Also, there may be some cases where a buildings policy is not necessary. For example, if you own a leasehold property in a block of flats and rent it out, you could find the block freeholder has their own buildings insurance which should cover you in the event of any incident such as a leaking washing machine ruining your floor – and the flat below's ceiling.

Yet not all freeholders will have a comprehensive buildings insurance policy so if you're in this situation, double-check.

Landlord insurance is souped-up home insurance, covering all the usual plus tenant issues

Landlord insurance is usually an umbrella term given to different strands of cover bolted together for anyone who owns a home they rent out, and it's entirely up to you to decide what it includes, though the more you add the more it costs. These are your options:

  • Buildings cover. To rebuild or repair your home if the structure is damaged.

  • Cover for YOUR contents. If stolen by someone other than your tenant (see below as there's separate cover for this) or damaged by fire, flood and more. It will NOT pay out for a tenant's contents.

  • Loss of rent. If tenants don't pay up or are rehoused if your home's damaged.

  • Accidental/malicious damage or theft by tenants. If your goods or furnishings are stolen or damaged by tenants.

  • Legal expenses. If you take action when dealing with tenant disputes.

  • Public liability. If a tenant or visitor is injured on your property and claims against you.

  • Property damage due to illegal cultivation of drugs. By your tenant, of course.

  • Eviction of squatters. Where a tenant simply won't leave.

There are other points to watch out for too:

Membership of a landlord association is no replacement for cover

Consider contents cover if your property is furnished

Own a leasehold flat? Buildings cover may already be included

To qualify for a mortgage, you'll need some sort of buildings insurance

Moved and renting out your old home? You'll need a new policy

Insurers will ask what your tenants do (and may charge more if they're students or on housing benefit)

student home

When you buy landlord insurance, you'll be asked what kind of tenant you rent to – usually early on in the application process.

You'll generally be asked to choose from a dropdown box or to tick a box showing what type of tenant you have. These are the main categories you can choose from:

  • Employees
  • Students
  • Those in receipt of housing benefits
  • Unemployed
  • Self-employed
  • Asylum seekers
  • Retired
  • A mix of the above

It matters because the type of tenant you rent your property out to will have an impact on how much you pay for landlord insurance. Choose to let to students or those in receipt of housing benefit (and the unemployed) and you'll pay more.

This is because these groups' lack of income – or low level of take-home pay – means they're a higher risk to insurers, which worry you'll struggle to fill your rental property. In particular, you'll pay a much steeper premium if you want your policy to cover you for non-payment of rent.

Not every insurer is willing to cover all types of tenant but most will give you a broad choice of tenant categories. However, you must always make it clear to an insurer who it is you'll be renting to. Fail to do so and you could invalidate your policy.

You'll need extra cover if the property is left vacant for more than 30 days

Most policies will cover you for a claim if your property's left empty for a short period, usually 30 days – handy if you're planning a quick renovation or kitchen overhaul. So if thieves broke in or your property suffered damage from a water leak, you'd get a payout.

But if you know the property is going to be sitting empty for several months – for major works, say – you'll need to tell your insurer and agree additional cover, or pay extra to take out a separate 'unoccupied property insurance' policy to add to your existing landlord cover.

If you don't, you could find yourself uninsured and out of pocket during that period if the property is taken over by squatters, vandalised or damaged by fire or flood.

You MUST provide smoke and carbon monoxide alarms – if not, you may invalidate your policy

smoke alarm

These alarms should be on every floor of the property you're letting and you'll need to test them frequently. You also need to make sure the property is safe for tenants – eg, having up-to-date building and electrical installation safety regulation certificates – and carry out any necessary repairs.

Plus, you'll need to have all gas and electrical equipment checked regularly and ensure it meets safety requirements. Fail to do so and insurers can deem your policy invalid. Your tenants can then take you to court and you won't be able to use legal cover to fund the claim.

See a full rundown of your landlord responsibilities including keeping your tenant's deposit safe in a deposit protection scheme.

row houses

Use comparison sites to find the cheapest landlord policy for you

Once you've brushed up on the basics from our top five tips and decided landlord insurance is right for you, it's time to visit comparison sites for quotes. These sites zip your details to a number of insurers and brokers to find the cheapest. They don't all compare the same companies, so it's best to combine them.

Step 1. Use comparison sites – a quick route for quotes but it won't find all providers

This is a quick and easy way to search for a policy that'll give you a decent benchmark for prices. But it'll only give you a sample – less than half – of the landlord insurance market which has more than 50 insurers and brokers.

Here are two of the biggest which compare landlord insurance premiums to get a speedy quotation. They don't search the same insurers so try both if you've time.

Step 2. Check the BIG insurers and brokers comparison sites miss out

Comparison sites let you compare insurers quickly, yet don't capture the entire market. Some insurers don't appear on comparison sites at all – and some deals are only available by going directly to an insurer's website.

We've only included the biggies here but the broker section below will help you extend your search even wider. The following policies only cover employed tenants – students or those receiving housing benefit won't be included.


Direct Line* guarantees to beat the price of any other insurer. It must be on an equivalent policy and you must send proof of the rival's price (only applies to new policyholders; see the full T&Cs).


Home & Legacy is a specialist provider offering two levels of cover – entry level for new landlords and top level for professionals.


HomeLet, part of Barbon Insurance Group, also offers a nifty comparison tool in case you want to compare its cover levels against rival policies. A Landlords' Advice e-book is also available.


More Than is another household-name insurer to consider, and allows you to pay your premium on a monthly basis interest-free.

Simple Landlord

With Simple Landlords*, use the code EXPR10 to get a 10% discount. Accidental damage is provided free with buildings cover.

Step 3. Still struggling to find cover? Try a specialist broker

If you own an unusual property you want to rent out – a flat over a shop, say, or many floors up in a tower block – and are struggling to find cover, speak to a specialist broker that should be able to help. Try the British Insurance Brokers' Association's search tool or if you prefer, call its broker helpline on 0370 950 1790.

Step 4. Check your policy

Always double-check the policy terms. Once you've found the cheapest quotes to suit you and your wallet from the comparison sites and by going direct, make two important checks.

  • Double-check the quotes
    Click through to the insurance provider's own website to double-check the quotes are suitable. Some comparison sites make a few assumptions (that might not be right for you) to speed up searches.

  • Examine the policy's cover to try to tweak the price down
    While checking whether it's suitable, it's worth playing with the policy details to see if you can finesse the price down. For example, look at the excess, and see if any affordable adjustment here can trim the cost.

Step 5. Get cashback too

Once you know which your cheapest provider is, you need to check you're not missing out on any cashback deals. If your second or third cheapest quotes weren't much more expensive, see if cashback's available for them too, and find the overall winner.

It's important to be aware that the cashback is coming from the comparison site, not the insurer, so getting the cashback relies on its ability to pay.

Things you need to know before getting cashback...

Never count the cash as yours until it's in your bank account

Withdraw the cashback as soon as you're allowed

Clear your cookies

How to make a claim on your landlord insurance

Claiming on your landlord insurance should be straightforward, and needn't be daunting. If you've read and understand the terms and excesses on your policy, you shouldn't be in for any nasty shocks. But in the event you need to claim, take two simple steps...

  • If it's a theft or serious damage to your property by unruly tenants, notify the police

    If something's stolen from the property or it's badly damaged by misbehaving tenants, you'll need to get a crime reference number to make a claim. Report the incident to the police as soon as you can to make sure your claim doesn't hit the skids.

  • Submit your claim as soon as possible

    Contact your insurer as soon as you can to avoid any administrative hold-ups; if it's a complex claim, it may take a while to be processed, so the sooner you start, the better.

How to complain about your insurance provider

The insurance industry doesn't have the best customer-service reputation and while a provider may be good for some, it can be hell for others. Common problems include claims not being paid out on time or at all, unfair charges, or exclusions being hidden in small print. It's always worth trying to call your provider first, but, if not, then:

Free tool if you're having a problem

This tool helps you draft your complaint and manage it too. It's totally free, and offered by a firm called Resolver which we like so much we work with to help people get complaints justice.

If the complaint isn't resolved, Resolver will escalate it to the free Financial Ombudsman Service.

Important: If your issue is about a voucher or incentive that was part of an MSE Blagged deal, instead just let us know by emailing as that's usually quicker.

Get Our Free Money Tips Email!

For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out