landlord insurance

Landlord insurance isn’t legally required in the same way car insurance is – however it’s still a wise investment to make as property repairs can become expensive.

A standard home insurance policy might not cover you if you rent your property out to tenants and you aren’t living there. This is because tenants present a different, and usually greater, risk to the property – and therefore to the insurer:

• Tenants aren’t invested in the property, so they may not care as much about its condition

• They may not notice certain maintenance issues that could grow if left unattended

• They may cause accidental or even malicious damage to the property

• They may hold you, the landlord, liable if they get hurt in the property 

Landlord insurance caters to these specific situations that won’t usually be covered by standard home insurance.

When you sign up to your landlord insurance policy, you should receive a booklet that outlines the detail of your policy, which usually comes with a claims form. You can claim by filling it out and mailing it to your insurer, though they may also be able to handle your claim online or over the phone.

You might need contents insurance as a landlord if you’re supplying furniture, fixtures and fittings for your tenants. For example, a landlord contents policy can help with freestanding sofas and beds, floor coverings and electrical appliances. You can generally expect the following to be covered either as standard or with an add-on:

• Furniture such as sofas and cabinets

• Kitchen appliances like ovens or sinks

• Curtains

• Carpets 

• Paintings and pictures

• Light fixtures

• Outbuildings such as sheds or outhouses

• Gardens and any contents in the garden 

• Communal areas, if you’re letting your property out to multiple tenants

You might also be able to claim for alternative accommodation for your tenants if any damage to your contents renders the property uninhabitable.

Most insurers offer the option of adding multiple properties to your policy, and you may even be able to get a discount on your premiums as a result. However you may find that you need separate policies for each property, so it’s always better to compare your options before committing to a provider to ensure you’re getting the best deal.

Landlords are generally able to claim a tax deduction for the running and maintenance costs of their property, which includes landlord insurance, as well as:

• General maintenance and repairs

• Council tax

• Water, gas and electricity

• Maintenance services like cleaners and gardeners  

• Letting agent fees

• Property management fees

• Accountant fees 

The first £1,000 of your property rental income is your property allowance, and therefore it’s tax free. Your total rental income added together, minus all your allowable expenses (including landlord insurance) will give you your profit or loss. 

• For profit margins of £1,000 or less, you just need to claim for your allowance. 

• For profits of between £1,000 and £2,500 you need to contact the HMRC to ensure you’re paying the correct tax

• For profits of between £2,500 and £9,999 after expenses, or £10,000 or more before expenses, you’ll need to report the income on a self-assessment tax return

If you live in the property and you are renting a room out, you should clarify whether the agreement is that they are a tenant or a lodger. Essentially, if you’ve agreed you cannot enter their room without their permission this would make them a tenant – and therefore you’d need landlord insurance to be properly covered.

If they’re a lodger then you should be able to get an extension on your home insurance policy that will cover you for housing a lodger.

As a landlord there’s always a risk that a tenant might refuse or not be able to pay rent. While this can cause problems, there are things you can do to protect your rental income – you can see what your options are with our guide to rent guarantee insurance.

Rental guarantee insurance usually covers six or 12-month periods, though an excess of one month’s rent is not uncommon.

As a landlord there’s always a risk that a tenant might refuse or not be able to pay rent. While this can cause problems, there are things you can do to protect your rental income – you can see what your options are with our guide to rent guarantee insurance.

Rental guarantee insurance usually covers six or 12-month periods, though an excess of one month’s rent is not uncommon

Finding the right policy for your properties and your own individual needs is crucial. Take a look at our landlord insurance guide to make sure your policy covers all the bases.

When you’ve decided on the level of cover you need, find the best landlord policy for your requirements via our preferred provider. MoneySuperMarket has teamed up with Simply Business, who offers an external landlord insurance comparison service. Simply Business is Authorised and Regulated by the Financial Conduct Authority (FCA reference 313348)

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