Landlord insurance, explained

Landlord insurance protects a property you let out. It usually combines buildings insurance for the structure with optional contents cover for anything you supply, such as furniture or white goods, plus loss of rent and liability cover for injury or damage to tenants and other people. MoneyHelper describes landlord's insurance as usually covering the buildings and contents, plus rental income and damage or injury to your tenants.

If you have a buy-to-let mortgage, your lender will normally require buildings cover. Your tenants' own belongings are theirs to insure. The parts of a landlord claim that most often cause disputes are damage caused by tenants, periods when the property sits empty, and policy conditions about inspections and upkeep.

What landlord insurance usually covers

Buildings cover and the sum insured

As with any buildings policy, the sum insured should be enough to clear the site and rebuild. If it is too low, an insurer may reduce a claim in proportion to the underinsurance. The Financial Ombudsman Service illustrates this: a £300,000 sum insured that should have been £500,000 could mean only 60% of a claim is paid. The ombudsman says it rarely finds applying such an "average" clause fair without clear wording, and often prefers a reduction based on the premium instead. The same principles are set out in our home insurance guide.

Loss of rent

Loss of rent cover pays the rent you would have received while the property is uninhabitable because of damage from an insured peril. Because it is tied to damage, it is a different thing from cover for rent a tenant fails to pay. Check whether your policy covers arrears at all, and on what conditions.

In a published decision (DRN-4491206), a landlord's property was damaged after being used as a cannabis farm. The insurer accepted the malicious damage claim but delayed the repairs and refused the loss of rent. The ombudsman noted the policy covered loss of rent when the property was not fit to live in due to an insured peril, and told the insurer to pay the lost rent for the period it considered, plus interest and compensation for the delays.

Liability

Property owner's liability covers your legal liability if someone is injured, or their property is damaged, because of the building you own, for example a loose stair rail. It is separate from employers' liability. If you employ anyone directly, for example a caretaker, the Employers' Liability (Compulsory Insurance) Act 1969 may require you to hold employers' liability insurance of at least £5 million. HSE's guidance explains who counts as an employee.

Damage caused by tenants

This is the single most disputed area. Policies handle it in different ways:

• Some include malicious damage by tenants, as in the decision described below.
• Others limit or exclude damage caused by tenants or people they let into the property, or offer it only as an add-on.
• Accidental damage by tenants may or may not be covered, depending on the wording.
• Wear and tear, and gradual deterioration, are almost always excluded.

In decision DRN-3224059, a tenant carried out extensive, poor-quality alterations, including building walls and a shower room. The policy covered malicious damage by tenants but didn't define it. The ombudsman looked at whether the tenant intended to cause harm, concluded the work was done to benefit the tenant's living space rather than to cause loss, and found the insurer had fairly declined that part of the claim. The landlord also couldn't show evidence of routine inspections or legally required safety checks, and the policy required reasonable care to maintain the property. The ombudsman found it reasonable for the insurer to rely on that condition.

The practical point: keep dated records of inspections, safety certificates and inventories. They are often the evidence that decides a tenant-damage claim.

Empty periods between tenancies

Most property policies restrict cover once a home has been unoccupied for 30 or 60 days. After that, theft, attempted theft, malicious damage and escape of water are commonly excluded. A void period between tenancies, or a long refurbishment, can easily pass that limit.

The Financial Ombudsman Service says policies rarely define "unoccupied". Where a term is unclear, it usually adopts the meaning most favourable to the customer, and it has accepted that a property visited reasonably often may count as occupied. It also says a claim should normally be met if the damage happened within the first 30 days of the property being empty. It does not consider it good practice to refuse a claim for a breach that was only technical and unconnected to the loss.

Flood and landlords

Flood Re can help residential buy-to-let properties that meet all its criteria: built before 1 January 2009, Council Tax band A to H, insured in the name of individuals, and no more than three residential units. Blocks of more than three units, business-rated bed and breakfasts and commercial portfolios are not eligible. Flood Re can also cover a tenant's own contents.

Scotland: landlord registration

In Scotland, landlords generally must register with the Scottish Landlord Register before renting out a property, and renew every three years. Each co-owner must register. mygov.scot says it is a criminal offence to rent out a property without being registered, and you can be fined up to £50,000. Some landlords are exempt, including resident landlords, people letting to family members and holiday lets. Registration is a legal duty separate from insurance.

What changes the cost

Insurers price landlord cover on factors such as the rebuild cost, location, the type of tenancy and tenant, whether the property is furnished, the number of units, claims history, flood and subsidence risk, security, how long the property is likely to be empty and the excesses you choose.

How claims work and why they get refused

FCA rules (ICOBS 8.1) require insurers to handle claims promptly and fairly, give reasonable guidance and progress updates, and not unreasonably reject a claim. Common reasons landlord claims are refused or reduced:

• the damage was by a tenant and the policy excludes it, or it wasn't "malicious" as defined
• the property was empty beyond the unoccupancy limit
• conditions on inspections, maintenance or safety checks weren't met
• the sum insured was too low
• facts about the let, such as the type of tenant or a change of use, weren't disclosed

If a claim is refused, see what to do when an insurance claim is rejected.

What to check in your policy

• Buildings sum insured: a current rebuild figure?
• Average or underinsurance clause wording
• Malicious damage by tenants: included, excluded, or an add-on? Is "malicious" defined?
• Exclusion for damage by tenants or their visitors
• Loss of rent: limit in months or money, and what triggers it
• Rent arrears: covered at all, and on what conditions?
• Property owner's liability limit
• Unoccupancy clause: days allowed and conditions during void periods
• Inspection, maintenance and safety-check conditions
• Excesses, especially for escape of water and malicious damage
• Declared tenant type and number of units

When to talk to a regulated adviser

An FCA-regulated insurance broker can recommend cover for portfolios, houses in multiple occupation, flats above shops and other non-standard lets. For tenancy law questions, such as deposits or eviction, a solicitor is the right person, and in Scotland the rules differ from England and Wales.

Common questions

Do I need landlord insurance if I have a buy-to-let mortgage?

Your lender will normally require buildings insurance as a condition of the mortgage. MoneyHelper notes that landlords usually want cover for the structure, and that it is normally required with a mortgage. Contents cover for the tenant's own belongings is up to the tenant. If you provide furniture or appliances, you may want contents cover for those too.

What is loss of rent cover?

Loss of rent cover pays rent you lose while the property can't be lived in because of damage from something the policy covers, such as a fire or flood. In one published ombudsman decision, a landlord's policy covered loss of rent while the property was uninhabitable following an insured peril. Rent a tenant simply fails to pay is a different risk, so check whether your policy covers it at all.

Does landlord insurance cover damage caused by tenants?

Some policies cover malicious damage by tenants, others exclude damage by tenants or people they let in. Where a policy doesn't define malicious damage, the Financial Ombudsman Service has looked at whether the tenant intended to cause harm. Poor-quality alterations made to benefit the tenant were not treated as malicious in one published decision.

What happens to my cover when the property is empty between tenants?

Most property policies restrict cover after a home has been unoccupied for a set period, usually 30 or 60 days. Theft, malicious damage and escape of water are commonly limited after that point. Check the unoccupancy clause, tell your insurer about longer empty periods and keep a record of visits, since inspections may also be a policy condition.

Do landlords in Scotland have extra rules?

Yes. In Scotland, landlords generally must register with the Scottish Landlord Register before renting out a property, and renew every three years. Each co-owner must register. Letting without registration is a criminal offence, and mygov.scot says you can be fined up to £50,000. Some landlords are exempt, such as resident landlords and those letting to family.

Sources

1. MoneyHelper: Help buying home insurance checked 2 Oct 2026
2. MoneyHelper: What is buildings insurance? checked 2 Oct 2026
3. Financial Ombudsman Service: Decision DRN-4491206 (landlord policy, loss of rent) checked 2 Oct 2026
4. Financial Ombudsman Service: Decision DRN-3224059 (landlord policy, malicious damage by tenant) checked 2 Oct 2026
5. Financial Ombudsman Service: Unoccupied properties checked 2 Oct 2026
6. Financial Ombudsman Service: Underinsurance in home insurance complaints checked 2 Oct 2026
7. Flood Re: Eligibility criteria checked 2 Oct 2026
8. mygov.scot: Landlord registration checked 2 Oct 2026
9. HSE: Employers' Liability (Compulsory Insurance) Act 1969, a brief guide for employers (HSE40) checked 2 Oct 2026
10. FCA Handbook: ICOBS 8.1 Insurance claims handling checked 2 Oct 2026

This guide is general information about how insurance works in the UK. It isn't advice and doesn't take your circumstances into account. Policies differ: your own policy documents are what count.