What is landlord emergency cover?
Landlord home emergency cover is an insurance policy designed to protect landlords from the costs and stress of unexpected emergencies that may arise in properties they let.
It provides quick access to professional help, covering emergency situations that make the property uninhabitable for your tenants – for example, plumbing or heating failures or electrical issues.
What is landlord emergency cover?
Landlord home emergency cover is usually sold by mainstream or specialist insurers as:
An add-on to landlord insurance
A standalone insurance policy
This type of cover offers:
Access to tradespeople to attend the rental property to deal with a wide range of issues
Callout and labour costs covered up to pre-set limits
It’s important to understand that policies are designed to be used in the event of a domestic emergency – they are not maintenance contracts. You might want to buy a maintenance contract for your boiler as an alternative.
You also cannot use a mainstream home emergency cover policy if you are letting a property – you need a policy for landlords, not one for owner-occupiers.
What are the benefits of landlord emergency cover?
If you have landlord emergency cover, the insurer will have arrangements with contractors it can send to your property at short notice.
This will negate the need for you to source contractors yourself, and also work out cheaper.
What does landlord home emergency cover include?
While policies vary depending on the provider, landlord home emergency cover typically covers a wide range of incidents.
Here's a breakdown of what’s usually included:
Plumbing and drainage
Burst pipes: Emergency repairs for burst or leaking pipes that could cause significant water damage.
Blocked drains: Blockages in sinks, toilets, and drains, especially if they result in overflow or flooding.
Water leaks: Any unexpected water leaks that require immediate attention.
Heating and hot water systems
Boiler breakdown: If the central heating system or boiler stops working, emergency cover will usually pay for repairs or the replacement of parts.
Boiler replacement: If a callout reveals your boiler needs replacing, there might be a cash contribution to a new boiler (typically about £500)
Loss of heating: In the colder months, a heating failure can be an emergency. Cover typically includes the cost of repairs to keep tenants warm.
Hot water failures: If tenants lose access to hot water.
Electrical failures
Electrical issues: Dangerous electrical issues, such as faulty or exposed wires or circuit faults.
Electrical emergencies: If there’s a risk of fire or injury due to electrical problems, the policy can cover the cost of a qualified electrician.
Security issues
Broken windows and doors: If windows or doors are broken due to accidents, vandalism, or weather.
Lock failures: If locks malfunction or become faulty, emergency cover can provide locksmith services to secure the property.
Burglary and forced entry: If a break-in occurs, emergency cover may help pay for repairs to damaged locks, doors, and windows.
Pest infestation
Pest removal: Some policies include coverage for the removal of pests, such as rats, mice, or insects, which can cause damage to the property and create health risks for tenants.
Lost keys
Some policies will cover the cost of replacing lost keys or locking mechanisms if a tenant loses their key, and it’s necessary to ensure the security of the property.
Alternative accommodation
The cost of alternative accommodation for tenants (up to certain limits) if an insured event makes the rental property uninhabitable.
Are there limitations and exclusions with landlord home emergency cover?
Every landlord emergency cover insurance policy will contain limitations. For example, there may be a cap on:
The cost per claim
The number of callouts per year
The policy may also contain exclusions such as:
Claims made within 14 days of the policy starting
Issues not reported within 48 hours of occurring
Unoccupied properties
Boilers over a certain age, or boilers that have not been regularly serviced
Properties without a current Gas Safety certificate
Damage caused by faulty workmanship or DIY
Power outages caused by a power cut
Deliberate or intentional damage to the property
Wear and tear
Do landlords need home emergency cover?
Home emergency cover is not a legal requirement for landlords.
However, the terms of a tenancy will usually make the landlord responsible for maintenance of the property – including keeping the central heating, hot water and plumbing in working order. This means landlords will be obliged to fix any issues that arise – without cover, this will need to be arranged and paid for by the landlord.
Without insurance, out-of-hours callouts can be eye-wateringly expensive. For this reason, landlord home emergency cover is highly advisable as it offers:
Cover of unexpected costs up to certain levels
A quick response to tenant issues, resulting in happy tenants
24/7 access to professional help
Peace of mind that you are financially protected against certain unforeseen issues.
If you are a hands-on landlord who lives near the property and has the professional skills to fix most issues personally, you might not need landlord home emergency cover.
How much does landlord emergency cover cost?
The cost of landlord home emergency cover can vary depending on a number of factors. These include:
the level of cover
the insurer
the size and location of the property
any additional options you choose.
On average, landlords can expect to pay around £50 to £150 per year for a standard home emergency cover policy. There may be discounts available if you buy insurance for multiple properties.
Author
Emma Lunn
Personal finance expert
Emma has written about personal finance for almost 20 years, with a career spanning several recessions and their inevitable consequences. Emma’s main focus is helping people learn to manage their...
