Landlord insurance: What it covers and what it costs in 2026

Landlord insurance is not legally required, though many buy-to-let lenders make building insurance a condition of the mortgage; if you let a property without informing your insurer, your standard home policy could be invalidated, or a claim might be rejected. The key issue is which elements of a landlord's policy justify the premium charged. This is general information only, not financial advice, and the appropriate type of cover will vary depending on the property and the tenancy.

What a landlord policy covers

A specialist landlord insurance policy can include several different types of cover. Buildings insurance protects the structure of the property against insured risks such as fire, flood or storm damage. You can also add cover for loss of rent if the property becomes unlivable following an insured event, landlord contents for furniture and other belongings you provide, rent guarantee cover if a tenant stops paying, and property owners' liability cover if someone is injured or their property is damaged and you are legally responsible.

Certain policies also include separate legal expenses coverage for particular disputes involving tenants.

Loss of rent and loss of rent guarantee are often confused. In the case of loss of rent, a payment is made when the property becomes uninhabitable because of an event covered by the insurance policy. Rent guarantee, usually an optional extra, provides coverage for missed rent due to a tenant's default and typically includes eligibility requirements, such as satisfactory tenant references.

Tenants have to take out their own insurance for their possessions. The landlord's contents cover is most applicable to a furnished property, although an unfurnished property can still include items owned by the landlord, such as carpets, curtains, or appliances. Find out how your insurance company classifies these.

What it does not cover

Standard landlord insurance does not normally cover wear and tear or routine maintenance. An ageing boiler that wears out is therefore unlikely to be covered, although some insurers offer separate boiler breakdown or home emergency cover. Check the empty-property clause too: many policies restrict cover once the property has been unoccupied for a set period, which is exactly your position between tenancies or during a refurbishment.

You should check whether coverage for malicious damage by tenants is included or available as an optional add-on, since policies vary and it is important to read the wording carefully. Landlords with more than one property can generally combine their properties into a single portfolio policy with one renewal date, which can simplify administration and may be cheaper than obtaining individual policies.

How much does landlord insurance cost?

There is no single average price for landlord insurance because premiums vary widely from one property to another. Insurers will usually look at factors such as the property's location and type, its rebuild cost, how it is occupied, your claims history and the level of cover you choose.

As a guide, Simply Business reported that 10% of its landlord insurance customers paid £170.96 or less a year between January and June 2026 for buildings insurance with £2 million of property owners' liability cover. This should be treated as an example of lower-cost cover rather than a typical market price, as premiums can increase significantly when you add landlord contents, legal expenses, rent guarantee or cover for a House in Multiple Occupation (HMO).

When comparing quotes, look at what is included as well as the price. A cheaper policy may come with a higher excess, lower limits or fewer optional protections, so make sure you are comparing similar levels of cover.

For buildings insurance, use the property's estimated rebuild cost rather than its market value. The two figures can be very different. Setting the sum insured too low could leave you underinsured, while setting it unnecessarily high may mean paying for more cover than you need.

If you are new to renting out property, our first-time landlord checklist covers the main legal and practical requirements to have in place.

When rent guarantee cover may be useful

Rent guarantee insurance can help protect your rental income if a tenant stops paying. In England, landlords seeking possession because of serious rent arrears must follow the relevant grounds for possession under the Renters' Rights Act 2025, following changes that came into force on 1 May 2026. The process can involve notice periods, court proceedings and, in some cases, enforcement before the property is recovered. This means missed rent can build up over several months. You can read more about the changes in our guide to what changed under the Renters' Rights Act. Different possession rules apply in Wales, Scotland and Northern Ireland.

Rent guarantee insurance could be a useful form of protection for landlords who find it difficult to pay the mortgage or other property expenses while rent is missed. In contrast, those who have enough financial reserves might choose to take on the risk themselves. The question of whether or not the insurance is worthwhile will depend on various factors, including the premium, the highest amount that can be paid out, the duration of the cover, any excess or waiting period, and the policy's eligibility conditions and exclusions.

Flats are different

When you let out a leasehold flat, the freeholder generally gets the building insured and then passes on the cost to you via the service charge. In most cases, if the block policy already includes the necessary building coverage, there would be no need for you to get a separate buildings insurance policy for the same risk. Nevertheless, a leasehold landlord might still wish to look into taking out coverage for landlord's contents, liability, loss of rent, legal expenses, or a rent guarantee, depending on what the block policy already covers and the kinds of risks they want to be insured against.

Give the insurer accurate information about how you intend to use the property, and update them if anything changes. This might include the type of tenancy or occupants, whether the property is an HMO, and any significant period when it will be empty. Incorrect or incomplete information can affect whether a claim is paid.

If sorting the insurance is part of buying or selling a rental property this year, you can compare conveyancing quotes from regulated firms in a couple of minutes.