Landlord insurance: is it a legal requirement, and what does it cover?

Is it required by law?

No. There is no law in England that says a private landlord must have landlord insurance. In practice you will usually need some cover because:

• your mortgage lender almost always requires buildings insurance, and may say what kind once the home is let;
• your lease, for a flat, sets out who insures the building (usually the freeholder, through the service charge) and may require you to tell them you are letting;
• your existing policy may not cover a home that is let. Ordinary home insurance often excludes it, or needs to be told. A claim can be refused if the insurer was not told.

So the first step is to tell your lender and your current insurer that you plan to let.

What a landlord policy usually covers

Policies differ; these are the common parts.

• Buildings: the structure and fixtures against fire, flood, storm, escape of water and similar events.
• Landlord's contents: what you supply, such as carpets, curtains, white goods and furniture.
• Property owner's liability: claims by a tenant, visitor or neighbour who is injured or whose property is damaged because of the home's condition. A landlord who must repair owes a duty of care to anyone who could be affected by a defect (Defective Premises Act 1972, section 4).
• Loss of rent or alternative accommodation: if an insured event makes the home unfit to live in.

Optional extras include:

• rent guarantee: pays the rent for a time if the tenant does not;
• legal expenses: helps with the cost of a possession claim or a dispute;
• malicious damage by tenants and accidental damage.

What it usually does not cover

• wear and tear, and damage that happens slowly (damp from a long-standing leak, for example);
• maintenance and repairs you should have done;
• the tenant's own belongings: that is their contents insurance;
• a home left empty beyond the period the policy allows, often 30 to 60 days, unless you arrange cover;
• claims where you did not keep to the law or the policy's conditions, such as missing gas safety records, an unprotected deposit or a tenant not referenced to the insurer's standard.

Rent guarantee insurance after 1 May 2026

Section 21 has gone, so possession for arrears now runs through section 8. Check that your policy's wording has been updated for the Renters' Rights Act, what referencing it requires before the tenancy starts, and how soon you must report arrears. Many policies need notice within days of a missed payment.

What you cannot pass to the tenant

Under the Tenant Fees Act 2019 you cannot charge the tenant for your insurance, and you cannot require them to take out insurance with anyone, including pet insurance. They may choose to insure their own belongings.

Tax

The cost of buildings and contents insurance for a let home is normally an allowable expense against the rent.

Before you buy

• Tell the insurer the truth about the home, the tenancy and who lives there.
• Read the conditions and the exclusions, not just the price.
• Note the renewal date and keep the policy with the home's papers.

This guide is information, not insurance or financial advice; it does not recommend any product or insurer. LevelMoves can keep the policy and its renewal date with the home.