What does landlord insurance cover, and is it a legal requirement?

In England, landlord insurance is a private insurance product rather than a single statutory package, so cover depends on the policy wording and add-ons bought. The legal answer is different from the mortgage and commercial answer: the law may not force the product, but a lender, agent, lease or risk position often makes cover practically necessary.

What does landlord insurance cover?

Landlord insurance usually covers the building, landlord-owned contents, property-owner liability, loss of rent after an insured event, and optional extras such as rent guarantee, legal expenses or tenant damage cover. Buildings cover is the core of landlord insurance in the UK: Simply Quote says it “covers the cost of repairing or rebuilding after fire, flood, storm, subsidence, or vandalism.” Liability cover is often the next important section, because “If a tenant, visitor, or contractor is injured on your property, liability cover pays for legal costs and compensation.” Loss of rent is narrower than many landlords expect: it usually replaces rent only where an insured peril makes the home uninhabitable, not where a tenant simply stops paying. The most useful policy is therefore built from the claim types you actually need: building damage, landlord contents, liability, rent guarantee, legal costs, malicious or accidental tenant damage, and escape-of-water cover.

What does landlord insurance not cover?

Landlord insurance does not normally cover tenants’ belongings, ordinary wear and tear, unreported long empty periods, or risks excluded by the wording. A landlord policy protects the landlord’s interest, not the renter’s possessions: Simply Quote states, “Your policy only covers items you own as the landlord.” Wear and tear is also outside the bargain; the same guide says, “Gradual deterioration like worn carpets or flaking paint is not covered.” Empty property restrictions are another common trap, because many policies reduce, exclude or change cover after a void period; one broker summary says, “Most policies stop covering properties left empty for more than 30 days.” What is not covered matters as much as what is covered: a landlord claiming for an old carpet, a tenant’s laptop, a long-unoccupied house or an excluded leak can lose even though they bought landlord insurance.

Is landlord insurance a legal requirement?

No statute anywhere forces a landlord to buy landlord insurance, but a mortgaged Scottish landlord has a default statutory duty to insure the property, while in England and Wales insuring is the lender’s statutory power rather than the landlord’s statutory duty. In Scotland, standard condition 5 requires the debtor “to insure the security subjects or, at the option of the creditor, to permit the creditor to insure the security subjects,” unless the mortgage terms change that default. In England and Wales, the Law of Property Act 1925 gives the mortgagee “a power... to insure and keep insured” mortgaged property and add the premium to the mortgage debt. That means landlord insurance is not legally required as a product in England, and public liability insurance is not generally compulsory either; however, most buy-to-let lenders require buildings cover as a loan condition. In Scotland, the mortgage-default rule makes the practical legal position stricter for mortgaged property.

Do you need landlord insurance, or will ordinary buildings insurance do?

You normally need specialist landlord buildings insurance once you rent out a property, because ordinary home insurance is written for owner-occupation and may not cover letting. One insurance broker puts the market rule bluntly: “Standard home insurance is void from the moment you let your property to a tenant.” A basic buildings section may look similar because both products insure walls, roof and structure, but the risk is different once rent is being charged, tenants are in occupation and the owner is not living there. Landlord insurance can also add landlord-specific cover such as property-owner liability, loss of rent after an insured event, rent guarantee, legal expenses and tenant damage. If you are asking whether you need landlord insurance or just building insurance to rent out your house, the safest answer is that the building must be insured on terms that expressly allow letting.

Is landlord insurance worth having?

Landlord insurance is usually worth having where one uninsured event would cost more than several years of premiums, especially for mortgaged or single-property landlords. MoneySuperMarket’s April 2026 comparison data gives a useful benchmark: “Covering just the structure of your rental property costs £253.23 on average, less than the £286.68 average cost of covering furniture too.” That is not a quote for your property, but it shows the annual cost of basic landlord buildings insurance is small compared with a fire, flood, subsidence claim, liability claim or months of lost rent after damage. Even a landlord with no mortgage still carries the asset risk personally; MoneySuperMarket says, “Even if you don't have a mortgage on a rental property, it's a good idea to have landlord insurance.” The stronger your cash reserves, the more you can self-insure; the thinner they are, the more cover matters.

Do landlords need public liability insurance?

Landlords in England do not generally have a statutory duty to buy public liability insurance, but landlord liability cover is one of the most important parts of a policy. The legal contrast is employers’ liability: Parliament makes employers insure against employee injury, requiring that “every employer carrying on any business in Great Britain shall insure, and maintain insurance” against liability for bodily injury or disease sustained by employees. Public liability is different; Simply Quote states, “Public liability insurance isn't a legal requirement in the UK.” Scotland’s national short-term-let licensing rules also do not set a national public-liability sum, although individual councils may ask for evidence locally. The practical reason to buy landlord liability insurance is straightforward: if a tenant, visitor or contractor is injured because of the property, the claim is against the landlord, and insurance is what usually funds the defence and compensation.

Do letting agents and property managers need public liability insurance?

Letting agents and property managers in England do not have a general statutory duty to hold public liability insurance, although they may need client money protection, redress membership and, commercially, professional indemnity cover. For agents holding client money, the English rule is that “A property agent who holds client money must be a member of an approved or designated client money protection scheme.” Separately, the wider redress rule says, “A person who engages in lettings agency work must be a member of a redress scheme for dealing with complaints in connection with that work.” Those are not public liability insurance requirements. Scotland is different for letting-agent registration because the Scottish Government says, “The Code requires you to get professional indemnity insurance.” Professional indemnity covers professional mistakes; public liability covers injury or property damage to third parties. A property manager may still need public liability because contracts, venues, blocks, landlords or managing agents often insist on it.

Do you need landlord insurance for a lodger, or a room in your own home?

You usually do not need a separate landlord insurance policy just because you take in a lodger in your own home, but you must tell your home insurer and get cover that permits the arrangement. GOV.UK defines the setup as resident-landlord letting: “You’re a resident landlord if you let out part of a property which is your only or main home.” Insurance practice treats that differently from a normal buy-to-let; Compare the Market says, “Getting home insurance to take in a lodger doesn’t mean taking out a separate policy.” The line can move if the occupier has self-contained accommodation, because “If the renter has their own front door or only shares a hallway – as they live in an annex, for example – they’re considered a tenant.” So for renting out a room while you still live in the property, speak to the existing insurer first; for a self-contained let, landlord insurance is usually the right product.

Does landlord insurance cover rent arrears when a tenant stops paying?

Standard landlord insurance normally does not cover rent arrears when a tenant stops paying; you need rent guarantee cover or a rent-and-legal-protection add-on. MoneySuperMarket states, “Most landlord insurance policies will not cover lost rental income due to tenant non-payment unless you add on rent guarantee cover.” This is separate from ordinary loss-of-rent cover, which is tied to property damage: the same guide says, “Many standard policies include ‘loss of rent cover’ if the property becomes uninhabitable due to an insured event, such as a fire or flood.” Rent guarantee insurance is usually bolted onto a landlord policy rather than bought alone, and it commonly depends on referencing, arrears triggers, exclusions and claim steps. If the tenant has simply stopped paying, check whether your policy says rent guarantee, tenant default or rent protection; if it only says loss of rent after insured damage, arrears are unlikely to be covered.

Does landlord insurance cover legal costs?

Landlord insurance covers legal costs only if the policy includes legal expenses cover, usually as an optional add-on for tenant disputes, eviction action, rent recovery or property-related claims. Money Saving Expert describes landlord insurance as “souped-up home insurance to cover extra perils such as non-payment of rent or damage by tenants,” which is a useful reminder that the product is modular rather than fixed by law. Legal expenses is one of the sections landlords often assume is automatic when it is not. The cover may pay solicitor, court or possession-related costs, but only for listed disputes and only after policy conditions are met, such as reporting the dispute promptly and using the insurer’s approved process. If you want cover for recovering arrears, serving proceedings, defending a tenant claim or dealing with property disputes, the policy schedule needs to show legal expenses or rent-and-legal-protection cover expressly.

Does landlord insurance cover damage caused by a tenant?

Landlord insurance covers tenant damage only where the policy includes that damage type, and standard cover often excludes tenant-caused damage unless accidental damage, malicious damage or tenants’ damage cover has been added. Money Saving Expert lists tenant theft or damage as an extra cover area with the example, “If your goods or furnishings are stolen or damaged by tenants.” Direct Line for Business makes the deliberate-damage distinction clearer: “As an optional extra, you can include damage carried out by the tenants on purpose by taking out Malicious Damage by Tenants cover.” Damage to walls, doors, kitchens, carpets or furniture can therefore fall into different buckets: insured accidental damage, insured malicious damage, deposit deduction, fair wear and tear, or an excluded loss. The question is not whether landlord insurance ever covers damage caused by a tenant; it does, but only if the wording and schedule include the relevant cover.

Can a tenant claim on their own insurance for damage they caused?

A tenant can claim on their own tenants’ liability insurance for accidental damage they caused to the rented home, but deliberate damage and uninsured loss still remain outside that cover. GoCompare defines the product directly: “Tenants' liability insurance is a type of cover that protects you if you accidentally damage the home you're renting from a landlord.” That means a cracked door, damaged worktop or broken fitting may be claimable by the tenant if the incident is accidental and the policy covers that item. It does not have to be a claim made by the landlord on the landlord’s own insurance, although the landlord will usually need to co-operate because the damaged property belongs to them. Deliberate damage is different: GoCompare lists as excluded “Anything that you, your housemates or guests damage on purpose.” Tenants’ liability insurance is optional, and GoCompare also states, “It isn't compulsory to have tenants' liability insurance as a renter.”

Can you claim on insurance and still deduct the same damage from the deposit?

You can usually recover only your actual loss, so an insurance payout and deposit deduction should not compensate the same repair twice, although you may be able to deduct an uninsured excess or any shortfall. GOV.UK’s deposit guidance gives the basic deposit rule: “If your tenant damages the property, you may keep some or all of the tenancy deposit to cover the cost of repair.” The closest policy examples found do not prove the answer for every accidental sub-£25,000 claim, but they show how insurers block double recovery. Total Landlord Insurance’s Premier summary says that for malicious tenant damage over £25,000, “the amount of any deposit lodged by your tenant will also be deducted from any settlement issued by your insurers.” For pet damage, the same summary excludes “Any amount that can be recovered from the tenancy deposit.” In a £500 excess and £750 deposit scenario, the cleanest claim is usually the £500 excess and any uninsured balance, not the insured repair cost again.

Does landlord insurance cover water damage and burst pipes?

Landlord buildings insurance commonly covers escape of water and burst pipes, but only on the terms of the policy and subject to empty-property, maintenance, excess and trace-and-access limits. Total Landlord Insurance says building insurance covers structural repair after perils including “fire, flood, storm, burst pipe, accidental damage or theft.” Its Premier summary also lists a specific insured peril: “Escape of water and resultant damage arising from fixed water tanks, apparatus or pipes.” That does not mean every water incident is paid in full. Policies may exclude gradual leaks, poor maintenance, frozen pipes where heating precautions were not followed, long unoccupancy, or detection work above a limit. Water leak detection is often called trace and access, and it can be capped separately from the repair itself. For burst pipes, the key checks are whether escape of water is insured, whether the property was occupied, what the excess is, and what trace-and-access limit applies.

How much does a water damage claim pay out?

A water damage claim pays the reasonable insured repair cost up to the policy limits, less the excess, but no reliable UK average payout figure is published for landlord water damage. The best concrete figure in the available policy material is not an average claim value; it is a trace-and-access cap. Total Landlord Insurance’s Premier summary covers “The costs for locating the source of escape of water or oil, up to £5,000 for any one building and up to £25,000 in total during the period of insurance.” The final payout for a water leak can therefore be a few hundred pounds for a small ceiling patch, several thousand for flooring, electrics and drying, or much more where kitchens, multiple flats or structural drying are involved. For a new ceiling after water damage, the insurer normally separates finding the leak, stopping it, drying, reinstatement, decoration, alternative accommodation or loss of rent, and any excess.

What happens if your property floods the flat below and you have no cover?

If your rental property floods the flat below and you have no insurance, you still need to stop the leak, make the property safe, notify affected people and may be personally exposed to a nuisance or negligence claim. Citizens Advice explains the neighbour’s legal route in England: “You could also make a court claim against your neighbour on the grounds of nuisance or negligence.” In the next few hours, turn off the water if safe, call an emergency plumber, photograph the damage, tell the freeholder or managing agent if it is a block, warn the downstairs occupier, preserve failed parts, and check whether any buildings policy exists through the freeholder. Without cover, the practical exposure is the repair bill to your own flat, any loss of rent, the excess or uninsured loss under any block policy, and the downstairs neighbour’s recoverable loss if you are liable.

Does landlord insurance cover lost rent during a void period?

Landlord insurance normally does not cover ordinary lost rent during a void period where no tenant is living there; loss-of-rent cover is usually tied to insured damage making the property uninhabitable. Homeprotect’s landlord wording illustrates the usual trigger: “If your tenants can't live in the property due to an insured event, we'll cover the rent you would have received.” Rent guarantee does not usually fill a normal void either, because it is aimed at tenant default while the tenancy continues. Rentguard describes its rent guarantee product as offsetting costs when “tenants' default on rental payments whilst still occupying the property.” So if a tenant leaves and the property sits empty for six weeks while you repaint and re-let, that is usually a commercial vacancy risk, not an insurance claim. If a fire, flood or escape of water forces the tenant out, then loss-of-rent cover may respond if it is included.

Does landlord insurance cover the property while it is standing empty?

Landlord insurance may cover an empty property only for a limited period or on reduced terms, and many policies require unoccupied-property cover once the property is empty for more than 30 consecutive days. Homeprotect says, “If your property will be empty for more than 30 consecutive days, unoccupied home insurance is likely to be required - especially if you want to remain protected against serious risks like fire.” Its own rules show why the detail matters: “If the property is normally occupied but left empty for 31-180 consecutive days, you're typically covered, except between 1 October and 1 April inclusive, where escape of water incidents are excluded.” Past that, water damage may stop altogether: “If the property is completely unoccupied and unfurnished, or it's furnished but unoccupied for more than 180 consecutive days a year, you're not covered for water damage.” Tell the insurer before the void breaches the policy limit.

Does landlord insurance cover tenants on benefits?

Landlord insurance can cover tenants on benefits only if the insurer’s underwriting rules and policy wording allow it; there is no statutory right to force a landlord insurer to accept benefit-claiming tenants. At least one broker’s landlord policy terms treat tenant status as underwriting-relevant, saying, “If your tenant's employment status changes – or if a new tenant moves in and their employment status is different to the previous tenant – you'll need to tell us immediately.” That wording matters because a tenant moving onto or off benefits may be treated as a change in employment status, even where the landlord is not allowed to discriminate when choosing tenants. The practical step is not to assume cover continues unchanged: tell the insurer or broker, keep the written response, and check whether rent guarantee, malicious damage, excesses or renewal terms change. Abodient can store the policy document against the property, so the landlord can find the wording when a tenant’s circumstances change.

Can an insurer refuse to renew because your tenants are on benefits?

Nothing stops an insurer declining renewal over a tenant’s benefit status: the Renters’ Rights Act binds landlords, not insurers, and the Equality Act does not help because the disadvantage is not the landlord’s own protected characteristic. The Equality Act indirect-discrimination test turns on a protected characteristic of the person disadvantaged: it applies where a provision is discriminatory “in relation to a relevant protected characteristic of B's.” A landlord refused renewal because their tenant receives benefits is commercially affected, but the protected characteristic is not the landlord’s. The FCA claims-handling rule also does not create a renewal duty; it requires insurers handling claims to “not unreasonably reject a claim,” which is different from forcing an insurer to offer a new policy. In England, the Renters’ Rights Act penalty for landlords refusing benefit claimants does not convert insurers into landlords or require them to underwrite the risk. The hard answer is that the landlord may need a different insurer.

Does your policy still cover you now the Renters' Rights Act has replaced shorthold tenancies?

A landlord policy that still refers to assured shorthold tenancies is not automatically void after the Renters’ Rights Act, but you should get written confirmation because English tenancy law has changed and policy wording has not always caught up. GOV.UK states the England change plainly: “All existing assured shorthold tenancies (ASTs) will change to assured periodic tenancies and new tenancies will be assured periodic tenancies.” The same GOV.UK page says the guidance “Applies to England,” so this does not alter Welsh or Scottish tenancy labels. Wales already uses occupation contracts under the Renting Homes (Wales) Act 2016, where “A tenancy or licence is an occupation contract if” the statutory conditions are met; Scotland uses its own private residential tenancy regime. The key point for England is contractual rather than statutory: ask the insurer whether references to ASTs include assured periodic tenancies after 1 May 2026, and keep the answer with the policy.

Last reviewed September 2026.

Sources

• Simply Quote, what landlord insurance covers — “It covers the cost of repairing or rebuilding after fire, flood, storm, subsidence, or vandalism.” Source
• Simply Quote, liability cover — “If a tenant, visitor, or contractor is injured on your property, liability cover pays for legal costs and compensation.” Source
• Simply Quote, landlord-owned items — “Your policy only covers items you own as the landlord.” Source
• Simply Quote, wear and tear — “Gradual deterioration like worn carpets or flaking paint is not covered.” Source
• Simply Quote, empty-property limit — “Most policies stop covering properties left empty for more than 30 days.” Source
• Conveyancing and Feudal Reform (Scotland) Act 1970, Schedule 3, standard condition 5 — “to insure the security subjects or, at the option of the creditor, to permit the creditor to insure the security subjects.” Source
• Law of Property Act 1925, s.101(1) — “a power... to insure and keep insured.” Source
• Letsafe, landlord insurance guide — “Standard home insurance is void from the moment you let your property to a tenant.” Source
• MoneySuperMarket, landlord insurance data — “Covering just the structure of your rental property costs £253.23 on average, less than the £286.68 average cost of covering furniture too.” Source
• MoneySuperMarket, landlord insurance recommendation — “Even if you don't have a mortgage on a rental property, it's a good idea to have landlord insurance.” Source
• Employers’ Liability (Compulsory Insurance) Act 1969, s.1(1) — “every employer carrying on any business in Great Britain shall insure, and maintain insurance.” Source
• Simply Quote, public liability insurance — “Public liability insurance isn't a legal requirement in the UK.” Source
• Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019 — “A property agent who holds client money must be a member of an approved or designated client money protection scheme.” Source
• Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme etc.) (England) Order 2014, article 3 — “A person who engages in lettings agency work must be a member of a redress scheme for dealing with complaints in connection with that work.” Source
• Scottish Government, letting-agent registration — “The Code requires you to get professional indemnity insurance.” Source
• GOV.UK, Rent a Room in your home — “You’re a resident landlord if you let out part of a property which is your only or main home.” Source
• Compare the Market, lodger insurance — “Getting home insurance to take in a lodger doesn’t mean taking out a separate policy.” Source
• Compare the Market, lodger or tenant — “If the renter has their own front door or only shares a hallway – as they live in an annex, for example – they’re considered a tenant.” Source
• MoneySuperMarket, rent guarantee — “Most landlord insurance policies will not cover lost rental income due to tenant non-payment unless you add on rent guarantee cover.” Source
• MoneySuperMarket, loss of rent — “Many standard policies include ‘loss of rent cover’ if the property becomes uninhabitable due to an insured event, such as a fire or flood.” Source
• Money Saving Expert, landlord insurance — “souped-up home insurance to cover extra perils such as non-payment of rent or damage by tenants.” Source
• Money Saving Expert, tenant damage cover — “If your goods or furnishings are stolen or damaged by tenants.” Source
• Direct Line for Business, malicious damage by tenants — “As an optional extra, you can include damage carried out by the tenants on purpose by taking out Malicious Damage by Tenants cover.” Source
• GoCompare, tenants’ liability insurance — “Tenants' liability insurance is a type of cover that protects you if you accidentally damage the home you're renting from a landlord.” Source
• GoCompare, tenants’ liability exclusion — “Anything that you, your housemates or guests damage on purpose.” Source
• GoCompare, tenants’ liability not compulsory — “It isn't compulsory to have tenants' liability insurance as a renter.” Source
• GOV.UK, deposit disputes — “If your tenant damages the property, you may keep some or all of the tenancy deposit to cover the cost of repair.” Source
• Total Landlord Insurance Premier Summary of Cover, malicious tenant damage — “the amount of any deposit lodged by your tenant will also be deducted from any settlement issued by your insurers.” Source
• Total Landlord Insurance Premier Summary of Cover, pet damage — “Any amount that can be recovered from the tenancy deposit.” Source
• Total Landlord Insurance FAQ — “fire, flood, storm, burst pipe, accidental damage or theft.” Source
• Total Landlord Insurance Premier Summary of Cover, escape of water — “Escape of water and resultant damage arising from fixed water tanks, apparatus or pipes.” Source
• Total Landlord Insurance Premier Summary of Cover, trace and access — “The costs for locating the source of escape of water or oil, up to £5,000 for any one building and up to £25,000 in total during the period of insurance.” Source
• Citizens Advice, leak from a neighbouring property — “You could also make a court claim against your neighbour on the grounds of nuisance or negligence.” Source
• Homeprotect, landlord insurance — “If your tenants can't live in the property due to an insured event, we'll cover the rent you would have received.” Source
• Rentguard, rent and legal protection — “tenants' default on rental payments whilst still occupying the property.” Source
• Homeprotect, unoccupied property — “If your property will be empty for more than 30 consecutive days, unoccupied home insurance is likely to be required - especially if you want to remain protected against serious risks like fire.” Source
• Homeprotect, 31–180 days empty — “If the property is normally occupied but left empty for 31-180 consecutive days, you're typically covered, except between 1 October and 1 April inclusive, where escape of water incidents are excluded.” Source
• Homeprotect, water damage when unoccupied — “If the property is completely unoccupied and unfurnished, or it's furnished but unoccupied for more than 180 consecutive days a year, you're not covered for water damage.” Source
• Simply Business, landlord insurance terms — “If your tenant's employment status changes – or if a new tenant moves in and their employment status is different to the previous tenant – you'll need to tell us immediately.” Source
• Equality Act 2010, s.19(1) — “in relation to a relevant protected characteristic of B's.” Source
• FCA Handbook ICOBS 8.1.1 — “not unreasonably reject a claim.” Source
• GOV.UK, Renters’ Rights Act overview for landlords — “All existing assured shorthold tenancies (ASTs) will change to assured periodic tenancies and new tenancies will be assured periodic tenancies.” Source
• GOV.UK, Renters’ Rights Act overview for landlords — “Applies to England.” Source
• Renting Homes (Wales) Act 2016, s.7 — “A tenancy or licence is an occupation contract if.” Source