What are the types of landlord insurance?

Buildings and content insurance

Buildings insurance covers the cost of repairing structural damage to the property and its permanent fixtures. This type of landlord insurance covers protection for built-in features such as kitchens and bathrooms, as well as any items that are not owned by the tenant, such as furniture, curtains and carpets. A typical policy will cover damage caused by:

• Fire or smoke
• Flood
• Theft, vandalism or malicious damage
• Oil or water leakage
• Lightning, storm (excluding gates and fences), or earthquake
• Subsidence, heave or landslip
• Burst pipes
• Impact from vehicles, falling trees, animals, aircraft, aerials and masts
• Civil commotion
• Property owners’ liability

Contents insurance can usually be added to a buildings insurance policy and provides cover for personal belongings within the property. This type of insurance is particularly relevant for landlords letting out a furnished property, as it protects furniture, appliances and other household items from damage or loss. Accidental damage can usually be taken out as an optional extra to your landlord insurance cost, offering cover for unexpected incidents such as spills, breakages or damage caused by tenants during the course of the tenancy.

Liability insurance

Liability insurance, also known as property owners’ liability cover and public liability cover, protects landlords against claims brought by tenants or visitors who suffer injury or property damage on the rental premises. Without this type of cover, a landlord may be personally liable for legal costs and compensation, potentially resulting in substantial financial loss. To reduce the likelihood of such claims, rental properties must be kept in a safe condition in line with the standards set by the Homes (Fitness for Human Habitation) Act 2018. Under the Act, properties must be fit and safe for occupation by tenants and their visitors.

Common hazards that may result in injury or damage include:

• Worn or loose carpets that may cause a trip or fall.
• Damaged floorboards that create a risk of trips or collapse.
• Missing or damaged handrails on staircases.
• Loose ceiling plaster that could detach and cause injury.
• Poorly maintained hot water or shower systems that may result in burns.
• Leaking pipes that could lead to damage to tenants’ possessions.
• Roofs in disrepair, increasing the risk of internal water damage or falling debris.

Rent guarantee insurance

Rent guarantee insurance provides cover for lost rental income if a tenant fails to pay their rent. This type of policy offers protection against tenant default and can be an effective way to limit financial disruption, particularly during longer void periods caused by unresolved rent arrears or late or withheld payments.

Cover typically includes loss of rent for a specified period, subject to the terms and conditions set out in the policy. Many policies also include legal expenses cover, enabling landlords to take action to recover outstanding rent or regain possession of the property through legal proceedings if necessary.

Rent guarantee insurance can be a practical safeguard for landlords who rely on timely rental income to meet mortgage repayments or other financial obligations. It offers added reassurance where tenants fall into arrears or delay payments without valid reason.

Legal expenses insurance

Legal expenses insurance covers the cost of legal advice, representation and proceedings in legal disputes with tenants. This type of insurance supports landlords in enforcing their rights and managing disputes efficiently, without incurring substantial legal fees.

Insured events typically include:

• Repossession proceedings.
• Claims relating to property damage, nuisance or trespass.
• Recovery of rent arrears.
• Defence against property-related prosecutions.

Many policies will also contribute towards the cost of alternative accommodation or storage if you are unable to access your property while possession proceedings are ongoing.

Do you need landlord insurance to comply with the law?

While there is no specific legal requirement for landlords to take out insurance, it is highly recommended to protect your investment and meet the obligations of mortgage lenders. Additionally, buildings insurance is a legal requirement if you have a mortgage on the property.

​​Landlords in the UK face numerous challenges and risks when renting out their properties. One such challenge is determining the right type and level of insurance to protect their investments. Understanding the advantages and disadvantages of insurance can help landlords make informed decisions about their coverage needs.

Why seek help from expert professionals?

Managing a rental property requires an understanding of complex legal obligations, evolving regulations and the potential risks that can arise during a tenancy. Working with experienced professionals in landlord and tenant matters can help you make informed decisions, reduce stress and protect your position as a landlord.

At AST Assistance, we specialise in advising landlords on a wide range of tenancy-related issues. We provide clear and practical guidance to help you:

• Choose appropriate insurance policies, including rent guarantee insurance and legal expenses cover.
• Maintain compliance with current housing legislation and standards.
• Receive support during disputes involving rent arrears, property damage or access refusal.
• Safeguard your rental income and protect your long-term investment.

With AST Assistance, you can work through the challenges of tenancy management confidently and with professional support at every stage.

Don't leave your investment at risk - contact our team of experienced legal professionals today to discuss your insurance needs and receive tailored advice to protect your property and interests.

Contact us today by calling 01706 619 954 or filling out our contact form below.