What does landlord insurance cover?

What is landlord insurance?

Landlord insurance is cover that protects landlords against common risks when renting out their property.

Usually, this will include buildings and contents insurance. It can also include property damage, legal liabilities, and potential loss of rental income—depending on the type of cover you have. 

We appreciate that becoming a landlord may not have always been in your plans, and you may have become a landlord by accident, if that’s the case then our guide may help.

What does general landlord insurance cover?

With most types of landlord cover you can tailor your policy to suit what works for you.

Typically a standard landlord insurance policy will cover:

• Protection against fire, theft, and flooding incidents
• The structure of the building
• Built-in elements, such as fitted kitchens and bathrooms
• Landlord-owned furnishings like furniture, carpets and curtains (this excludes tenants' personal items)

If you’d like extra cover you can usually add:

• Protection against the loss of rental income due to unsuitable property conditions
• Cover your legal expenses in case of court proceedings
• Accidental damage caused by your tenants
• Intentional damage caused by your tenants
• Public liability cover to protect you against claims of injury or property damage
• Costs for boiler repairs and breakdown cover
• Unpaid rent by tenants

Keep in mind that when you add more cover to your policy this will increase the cost, so it’s best to tailor your cover to match your budget.

What does landlord insurance not cover?

When you have landlord insurance there are typically a few things that won’t be covered:

Tenant's personal property

Usually, standard landlord insurance won’t cover your tenants’ possessions. This includes everything from furniture and clothing to electrical appliances. To ensure things like this are covered you should advise your tenant to purchase Renters Insurance.

Tenant negligence

If your tenant fails to report an issue, which eventually leads to further damage, then it's unlikely that your landlord's insurance will cover the repairs.

For example, a tenant might not tell you about a leak, which could cause a burst pipe or other equally damaging problem. To avoid this kind of problem, you should urge your tenants to report any problems as soon they occur.

Normal wear and tear

Landlord insurance won’t cover what’s known as ‘normal wear and tear’. These are things that naturally occur over time throughout the duration of a tenancy. This can include chipped paint, a carpet fading or appliances breaking down.

Intentional damage

Emergency home cover

Home Emergency cover is not usually sold as a standard policy, but it can be a useful addition when it comes to peace of mind for your home. A Home Emergency policy covers your expenses for fixing urgent issues in your home, like an electrical failure or boiler breakdown.

Types of landlord insurance

Landlord insurance is slightly different to home insurance, so we’ve broken down the various types of cover you can expect to find on the market and what they mean.

Landlords’ contents insurance

Landlord’s contents insurance provides cover for appliances such as white goods, furniture and furnishings, and other items that belong to you but are available for use by your tenants. In most cases, this will cover the cost of items that are lost or damaged by fire, flood or theft. 

It’s worth noting here that you’re not responsible for your tenant's belongings, so you should let them know that they’ll need to get cover of their own.

Property Owners’ Liability

As a landlord, you’d be liable for injury or damage to property. This is the case even when it’s done by someone who doesn't live there, should something go wrong inside or outside of your home.

This is why Property Owners’ Liability cover is sometimes overlooked—particularly when it comes to new landlords. Choosing this cover gives you cover for your legal liabilities when it comes to third parties, not just your tenants

The level of liability cover you’ll need will depend on your property and how exposed your property is. For example, somewhere rural is less likely to need high liability cover because of its location. However, if your property is on a main street then there is a greater risk to the public, your tenants and their guests.

Employers’ liability

If you employ people to clean, maintain or look after your property then you may want to consider employers’ liability cover. 

This provides cover for your legal defence costs and any compensation claims made against you, should you get sued for injury, disease or death caused by your negligence as their employer.

Loss of rent

When you’re considering what cover to choose, policies that include loss of rent are always a good idea. This means you’re covered for any lost rental income should your tenants not be able to stay at your home after an event such as fire or flood damage.

Some policies also cover the cost of alternative accommodation for your tenants if they have to move out of the property. Make sure to check if your policy provides this.

Accidental damage

Although it isn’t always offered as part of a standard cover, Accidental Damage cover is certainly worth considering as an extra level of protection.

In a nutshell, it provides cover for accidental damage to your property and its fixtures and fittings. For example, if you or your tenants smash a window or crack a sink by accident, you’d be covered by Accidental Damage cover.

Legal expenses

Legal expenses are not usually included as part of a standard policy. However, it’s a great option worth adding on in case you end up taking someone to court for non-payment or if you’re taken to court yourself. If you add this to your policy you’ll be covered for things like contract disputes, legal defence, debt recovery and eviction of squatters.

Home Emergency Cover

Home Emergency Cover is different from a standard home insurance policy because it is a type of insurance that covers the cost of calling out an engineer when you experience an emergency.

Whether it's a boiler breakdown or a problem with your electrics, you’re covered if something goes wrong. It helps you avoid being hit with the cost of call-out fees, labour and parts if you need urgent repairs at your property.

If your home is unsafe to stay in while the problem is fixed, your insurance may also cover overnight accommodation for you and your family. This is again at a cost agreed within the policy.

HomeServe Home Emergency Cover

Unlike most types of landlord cover that you’ll find on the market, HomeServe has a wide range of cover that protects parts of your rental property that other insurers might not.

Take a look at our range of landlord cover options and see what sets us apart from others to ensure that your rental home keeps running smoothly.

Get peace of mind for your property with HomeServe Landlord Cover

Whichever level of landlord cover you choose, HomeServe is always on hand in case of an emergency.

Whether you’re looking to cover your plumbing or electrics, boiler and central heating, or simply seeking a one-off repair, we’ve got you covered.