How much is landlord insurance?
In 2025, the average cost of landlord insurance in the UK is between £224.93 and £233.90 per year—but premiums can range from as low as £66 to over £1,400 depending on property type, location, and tenant profile.
There’s no flat fee for landlord insurance. Your annual premium is shaped by what you’re insuring, where the property is located, and who lives in it. It’s a balancing act between risk and cover—and the more tailored your policy, the more varied the cost.
Across the UK, most landlords pay around £225 to £235 a year for standard buildings cover on a mid-sized property with employed tenants. But the gap between the cheapest and most expensive policies is wide:
– Studio flats can cost just £101–£103 per year
– Terraced houses average around £231
– Properties in Romford can cost as little as £66 annually
– In Ealing, premiums often exceed £1,400 per year
That’s before factoring in extras like accidental damage, loss of rent cover, or contents insurance, which can add £30–£100+ each depending on the level of protection.
So while the average gives a starting point, it rarely tells the full story. In this article, we’ll explore what drives those costs—and how you can manage them without cutting corners on protection.
What is the average cost of landlord insurance in the UK?
The median average cost of landlord insurance in the UK in 2025 is between £224.93 and £233.90 per year—but costs vary dramatically based on property type, rebuild value, and location.
For a typical landlord with a single residential rental, a basic landlord insurance policy—including buildings cover—will cost somewhere in the region of £225 to £235 annually. This figure reflects a property with no recent claims, let to employed tenants, and located in a low-risk area.
But this “average” quickly becomes unreliable when you factor in more specific property profiles. The rebuild cost of the property, whether it’s a flat or a house, and who your tenants are can all shift that figure up or down—sometimes by hundreds of pounds.
To illustrate, here’s a breakdown of how premiums scale based on rebuild value:
Average Landlord Insurance Premiums by Rebuild Cost (2025)
| Rebuild Cost | Estimated Annual Premium (£) |
|---|---|
| £150,000 | £167.22 |
| £250,000 | £188.34 |
| £500,000 | £268.27 |
| £1,000,000 | £415.09 |
| £5–6 million | £4,768.41 |
These figures are based on standard landlord buildings cover only. If you include accidental damage, contents cover, rent guarantee, or emergency assistance, your policy could be significantly more expensive.
It’s also worth noting that more than 70% of landlords include buildings insurance, while around 30% add rent protection, and 20% include legal cover—which collectively push the average up.
Looking to compare landlord insurance? Get your quote today!
Get QuotesWhat affects the cost of landlord insurance?
Landlord insurance isn’t priced randomly. Your premium reflects a blend of risks—some you control, others you don’t. Insurers look at your property, your tenants, your location, and how much protection you want. That’s what drives the cost.
Start with the rebuild cost. Not market value—what it would actually cost to reconstruct the property if it were damaged beyond repair. This alone can make or break your quote.
| Rebuild Value | Estimated Annual Premium |
|---|---|
| £150,000 | £167 |
| £500,000 | £268 |
| £1,000,000 | £415 |
Add a few zeros and your premium climbs. And that’s before factoring in postcode risk.
Where your property sits makes a big difference. Take Ealing and Romford. In 2025, average premiums in Ealing top £1,400. In Romford? Just £66. The distance between those two is short—just not on the insurance scale.
Tenant profile plays a role too. If you’re renting to working professionals, you’re in the lowest risk band—expect quotes around £215. Swap that for student tenants and you’re looking at £320 or more. Housing benefit tenants? Higher still.
Then there’s the type of building. Studio flat in a new build? Likely cheaper to insure than a converted flat in a Victorian terrace. Terraced homes and semi-detached properties tend to sit somewhere in the middle.
And of course, what you choose to include affects the final quote. Basic buildings-only cover might suit some landlords. But once you add:
- Accidental damage
- Landlord contents
- Loss of rent
- Legal expenses
…it adds up quickly. That’s not always a bad thing. The right protection often costs more—but saves far more when things go wrong.
One last factor? Claims history. Insurers look at patterns. If you’ve had previous payouts—especially for the same type of issue—you’ll pay for it at renewal. You can soften that by increasing your voluntary excess, but make sure it’s a figure you could actually afford to cover.
How much does landlord insurance vary by region?
Landlord insurance premiums can vary by over £1,300 a year depending on where your property is located. In 2025, some London postcodes average over £1,400, while areas like Romford come in under £70.
Location isn’t just a postcode—it’s a risk profile. When insurers assess your address, they’re not thinking about amenities or schools. They’re looking at crime stats, flood risk, rebuilding costs, and historical claims data tied to that location.
Nowhere is this more obvious than in London. Properties in Ealing, for instance, average premiums in excess of £1,400 a year. The combination of property value, tenant density, and local risk factors pushes prices well above the national median.
Head to Romford, and you’re looking at premiums of just £66 per year—a fraction of the cost. Birmingham and other parts of the Midlands also tend to offer more favourable rates, often sitting below the £200 mark.
The south-east in general skews higher, especially in urban centres, while northern and rural areas often benefit from lower pricing—unless there’s a known flood history or crime hotspot nearby.
It’s not uncommon for two near-identical homes—just a few miles apart—to have completely different insurance costs. A flat in a quiet street could be £150 per year. Move it two postcodes over, and that jumps to £300 without changing a single feature of the property.
If you own multiple properties, understanding how regional risk plays into premiums is key to balancing your portfolio. It’s also why landlords shouldn’t treat “average UK cost” as a reliable estimate—it rarely tells the story on a postcode level.
What’s the cost of additional cover options?
While buildings-only cover might start around £170, adding extras like contents, legal expenses or rent protection can easily push your annual premium past £300. The more you insure, the more you pay—but the more you’re covered when things go wrong.
Not every landlord needs the works. But if you furnish your property, rely on the rental income, or want legal protection if a tenancy goes south, add-ons are worth a serious look.
Let’s break down what these extras typically cost in 2025:
| Add-On Type | Typical Additional Cost (per year) | What It Covers |
|---|---|---|
| Landlord Contents | £40–£60 (for ~£10k of cover) | Damage to your furniture, appliances or fittings—not tenants’ belongings. |
| Accidental Damage | £30–£50 | Repairs if tenants accidentally break something—like spilling paint on carpets or damaging countertops. |
| Loss of Rent Cover | £40–£80 | Covers rental income if your property becomes uninhabitable due to insured damage. |
| Legal Expenses Cover | £20–£30 | Helps pay for eviction proceedings, legal disputes, or defending liability claims. |
| Emergency Assistance | £25–£50 | Rapid call-outs for urgent issues like boiler failure, burst pipes, or broken locks. |
Some policies bundle these, while others charge separately. It’s not uncommon for a landlord to start with a £170 base premium and finish with a £320+ final quote once cover is tailored to their needs.
If you’re insuring multiple properties, some insurers offer multi-property bundles with reduced per-property costs on add-ons. But don’t assume you need everything—what makes sense for an HMO won’t always apply to a single flat in a new-build block.
Can you reduce the cost of landlord insurance?
Yes, you can reduce your landlord insurance premium—without sacrificing the cover you actually need.
Insurers price risk. If you can show them you’re a lower risk, they’ll often reward you. Here are a few areas where it’s worth pushing:
- Increase your voluntary excess – Boosting your excess from £100 to £250—or even £500—can lower your premium. Just be sure you’re comfortable covering that out-of-pocket cost if something goes wrong.
- Upgrade your security – Insurers notice when you install approved locks, burglar alarms, security lighting, or even video doorbells. These features reduce risk—and can shave money off your quote.
- Bundle policies or use portfolio cover – If you insure multiple properties, portfolio policies often deliver better per-property pricing. Bundling buildings and contents under one provider can also reduce duplication.
- Avoid over-insuring – Landlords often confuse market value with rebuild cost. Insuring for too much drives up premiums unnecessarily. Use a professional rebuild estimate or check with your lender.
- Review your quote annually – Sticking with the same insurer might feel easier, but it rarely saves money. New quotes—even from the same provider—can be £50–£100 cheaper with a few minor tweaks.
Premiums are rising across the board, but that doesn’t mean you’re powerless. Trim where it makes sense, stay covered where it matters—and don’t leave money on the table by default.
Final thoughts
The cost of landlord insurance in 2025 isn’t fixed—and it rarely tells the whole story. While averages sit around £225 to £235, what you’ll actually pay depends on your property’s rebuild cost, postcode, tenant type, and how much risk you’re willing to carry yourself.
Some landlords cut cover to save money. Others pay more than they need to, insuring for risks that don’t apply to their setup. The smart ones take the time to understand what they’re buying, what they’re exposed to, and where it makes sense to invest in protection.
If your property is your income, your safety net, or part of your long-term plan—then getting the right insurance isn’t a box to tick. It’s a business decision. And a bit of effort at the quote stage can save you far more than a few pounds on a premium.
Frequently Asked Questions (FAQs)
Yes. Landlord insurance typically costs more because it covers additional risks—like tenant damage, loss of rent, and liability claims—that don’t apply to standard residential owner-occupied policies.
Yes, but not all insurers will cover unoccupied properties for extended periods. If the property is empty, you may need unoccupied property insurance or notify your insurer of the vacancy.
Often, yes. New builds tend to attract lower premiums due to modern construction, better safety standards, and lower likelihood of structural issues or major repairs in the short term.
Yes. Many insurers offer a discount if you pay annually instead of monthly. This avoids interest charges and shows lower administrative risk to the insurer.
It can. Insurers may charge more for short-term lets, student tenancies, or HMOs due to higher perceived risk. Standard ASTs with employed tenants often cost less.
Not automatically. You’ll need to add rent guarantee or loss of rent cover to protect against unpaid rent. This is usually available for an additional cost.
No—but it’s still strongly advised. Without insurance, you’re financially exposed to building damage, liability claims, and loss of rental income—all of which you’d have to cover personally.
Yes. Portfolio landlord insurance lets you cover multiple properties under one policy. This can reduce per-property premiums and simplify renewals and admin.