What Insurance Do You Need To Have For Your Rental Property?

Being a landlord involves navigating the many different options available to you and coming to the right conclusion as to what’s best for your requirements. Choosing the right kind of insurance policies is one such decision to be made. Check out this handy guide on insurance for landlords…

As a legal requirement, you will need to take out buildings insurance, just as you will have done with your own private dwelling.

Buildings insurance should include cover for the following –

  • The structure of the property and the rebuilding of it, if required (as well as architects’ fees, demolition and site clearance)
  • Fire, explosion, floods, storms and earthquakes.
  • Burst pipes due to freezing conditions.
  • Theft, attempted theft and vandalism.
  • Flooding and fire damage.
  • Subsidence. 
  • Vehicle or aircraft collisions.
  • Damage caused by fallen trees, lampposts, aerials or satellite dishes.

Make sure that the sum insured (this is the maximum you can claim should the property be completely destroyed) reflects the re-build cost of the home rather than the market value. Your insurer will likely make an estimate based on the age and type of property among other factors.

Landlord insurance is not required by law but it might well be required by your mortgage provider. It is more specific than buildings insurance, as it covers you for the unique issues that can come up for those renting out a property.

There are a range of eventualities that these kinds of insurance policies can cover, including –

  • Property owners’ liability
  • Accidental damage
  • The need for alternative accommodation for your tenants
  • Contents insurance (especially if you are renting out a furnished property)
  • Loss of rent
  • Unoccupied property insurance
  • Fixtures and fittings
  • Tenant default insurance
  • Landlord legal expenses insurance

The best way to decide what kind of cover you require is to take a look at the circumstances of your rental property, what the main risks to the building and its contents are. You can also seek advice from others in the property rental business who are more familiar with what kind of insurance is most necessary. You might well not require every kind of cover that it offered to you!

The main requirements for most landlords are for the building to be covered as well as your liability and loss of rent. Adding contents cover, home emergency (if you do not use a lettings agent), legal expenses and rent guarantee might be some of the options that interest you.

Carefully comparing policies from different companies is important, as you want to make sure that you get the best deal and the right cover for you. Remember that the cheapest is not always that best! Even though your mortgage lender may well offer you their insurance products, you are not obliged to take them.

You will need to keep the insurer up-to-date regarding any changes in the rental situation, such as when you have a change of tenants or when the property is empty.

As always, Nick Fox Property Mentoring are on hand to offer you the best advice and guidance when it comes to managing your investment properties.


Nick Fox started his property investment career 10 years ago and his portfolio has grown to one of the largest in the UK. Nick now mainly focuses on HMOs (houses in multiple occupation) and works to help others achieve property success too. Visit here to find out how he can help you.





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