What is Landlord Insurance?
Landlord insurance is a specialist type of cover designed to protect property owners who rent out their homes, flats, or buildings to tenants. Unlike standard home insurance, it accounts for the unique risks involved in letting property—whether it’s a single buy-to-let or a portfolio of HMOs.
Renting out property exposes you to risks that simply don’t exist when you live in the home yourself. Tenants may accidentally cause damage. You could face legal action if someone is injured on the premises. And if a flood, fire, or electrical fault makes the property uninhabitable, you might lose rental income for weeks—or months. That’s where landlord insurance comes in.
This guide breaks down everything you need to know—from what landlord insurance actually covers, to how it differs from a standard policy, to why lenders often insist on it.
Whether you’re a first-time landlord, managing a block of flats, or juggling multiple properties across the UK, this article will help you understand the essentials and make informed decisions about the type of cover you need.
We’ll also explore how costs are calculated, when it’s legally required, and which policy types fit different landlord setups—including HMO, block of flats, and portfolio landlord cover.
What does landlord insurance cover?
Landlord insurance typically covers buildings, contents (if furnished), loss of rent, and liability for injury or damage. Additional protection can include legal expenses, accidental damage, and home emergency cover—depending on the level of policy you choose.
Most policies begin with the essentials: cover for your building’s structure and any landlord-owned contents inside. That includes everything from permanent fixtures to white goods and furniture in a furnished let. But the real strength of landlord insurance is in the extras—because being a landlord means being exposed to more than just fire or flooding.
You’re also liable if someone trips on loose carpet and breaks their leg. You could lose income if a burst pipe leaves your flat uninhabitable. Or you might face legal action from a tenant after a dispute over maintenance. This is where the optional add-ons become essential, especially if you’re managing a high-risk property like a block of flats or an HMO.
Here’s how typical cover breaks down:
| Cover Type | What It Protects | Standard or Optional? |
|---|---|---|
| Buildings Insurance | Structural damage (walls, roof, fittings) from events like fire, flood, storm | Standard |
| Landlord Contents | Furniture, appliances, and items owned by the landlord | Optional |
| Loss of Rent | Lost income if the property becomes uninhabitable due to damage | Optional |
| Property Owners’ Liability | Legal costs or compensation if someone is injured on the premises | Often Standard |
| Accidental Damage | Unexpected damage caused by tenants or guests | Optional |
| Legal Expenses | Cost of defending legal claims from tenants or third parties | Optional |
| Home Emergency | Call-out and repair for urgent issues (e.g. boiler breakdowns, burst pipes) | Optional |
If you’re a multi-property landlord, you might already be familiar with how cover can vary across properties—and why it’s crucial to avoid gaps. Some insurers offer bundled options for portfolio landlords that simplify administration and cost.
Looking to compare landlord insurance? Get your quote today!
Get QuotesHow much does landlord insurance cost?
Landlord insurance can start from around £120 per year, but the final price depends on your property type, location, tenant profile, and the level of cover you choose.
Unlike standard home insurance, landlord cover isn’t priced solely on postcode and rebuild value. Instead, insurers assess a broader set of risks—many of which are outside your control.
For instance, a landlord insuring a purpose-built flat let to working professionals will likely pay far less than one renting a Victorian terrace to DSS tenants in a flood-prone area. Adding cover for loss of rent, legal expenses, or accidental damage increases your premium—but it also increases your safety net.
Let’s break down a few common cost factors:
- Property type – Flats tend to be cheaper to insure than detached houses due to size and structure. However, a block of flats or multi-property landlord setup may introduce volume-based pricing.
- Tenant type – DSS tenants, students, and HMOs are often rated higher risk, so premiums may rise.
- Location – High-crime areas or flood zones can push premiums up.
- Optional extras – Adding extras like emergency call-out, malicious damage, or rent guarantee cover will affect cost.
- Claims history – If you’ve claimed before, expect to pay more—or face a higher excess.
Here’s a practical comparison to bring it to life:
Mini Case Study: Comparing Two Landlord Profiles
| Profile | Property | Tenants | Premium (est.) | Notes |
|---|---|---|---|---|
| DSS Landlord, Single Property | 2-bed flat in Leeds | DSS tenant | ~£225/year | Includes legal expenses + accidental damage |
| Portfolio Landlord | 3 HMOs in Manchester | Students | ~£550/year total | Multi-property discount applied, loss of rent added |
If you’re juggling more than one property, a portfolio landlord policy could cut admin and reduce per-property premiums. But don’t chase price alone—focus on value. Cheap cover that doesn’t pay out when you need it isn’t saving you money.
Related Read: How Much Is Landlord Insurance?
What’s the difference between HMO, portfolio, and standard landlord insurance?
The key difference lies in risk exposure and the complexity of cover. Standard landlord insurance is for a single let property, while HMO and portfolio policies are built for landlords managing multiple tenants or multiple properties—and come with different underwriting and legal considerations.
If you’re letting out one flat to a professional couple, a standard landlord policy usually covers you. But once you scale up—whether that’s in terms of tenants or property count—the insurance model changes. And it has to.
HMO (House in Multiple Occupation) insurance is tailored for properties where three or more unrelated tenants share facilities. These setups often carry higher risk: more footfall, more wear and tear, and more chances for liability claims. For that reason, HMO policies usually come with higher premiums and stricter conditions—such as mandatory fire safety compliance or regular inspections.
Portfolio landlord insurance, on the other hand, isn’t about tenant type—it’s about volume. If you own multiple properties (even if they’re standard lets), a portfolio policy rolls them under one plan. That makes admin easier and can reduce your total cost—especially when you combine different property types, such as a block of flats and two single-family homes.
Let’s look at how they differ at a glance:
| Policy Type | Designed For | Risks Considered | Typical Extras |
|---|---|---|---|
| Standard Landlord | One single-let property | Tenant-caused damage, loss of rent | Buildings, contents, legal expenses |
| HMO Insurance | Shared housing with 3+ unrelated tenants | Higher liability risk, increased maintenance | Enhanced liability, stricter fire cover |
| Portfolio Insurance | Landlords with 2+ properties (any type) | Cumulative property risk, admin efficiency | Multi-property discount, flexible limits |
If you own a flat rented to students, that’s likely both a buy to let and HMO scenario. If you’re managing three of these across different cities, you’re not just an HMO landlord—you’re a multi-property landlord too. And your policy needs to reflect all of it.
Bottom line? Don’t try to squeeze a complex setup into a basic policy. It’ll either leave you underinsured—or worse, uncovered altogether when something goes wrong.
Do you need landlord insurance by law?
No—landlord insurance isn’t legally required in the UK. But it is often required by mortgage lenders, and failing to have it can leave landlords dangerously exposed to financial and legal risks.
There’s no legislation that says landlords must take out insurance. You won’t be fined for going without it. But that doesn’t make it optional in practice.
If your rental property is mortgaged, your lender will almost certainly require proof of specialist landlord buildings insurance as a condition of the loan. That’s because standard home insurance is invalid once tenants move in—leaving the property (and their security) at risk.
Even if you own the property outright, the idea of letting it uninsured is a gamble. Fires, floods, tenant injury claims, malicious damage—it only takes one of these to turn a profitable let into a financial drain.
And in high-risk setups—like DSS landlord rentals or HMOs—the probability of claims rises significantly. Some local councils may also ask to see proof of cover as part of licensing or registration processes.
So while it’s not legally enforced, landlord insurance functions as a de facto requirement—one driven by finance providers, licensing bodies, and basic risk management.
In short: just because it’s not mandatory doesn’t mean it’s optional.
How to choose the right landlord insurance policy
Start with the type of property and tenant you’re dealing with. Then match the cover to your specific risks, not just your budget. The right landlord insurance policy protects your investment, your income, and your peace of mind.
If you’re letting out a one-bedroom flat to a professional couple, your insurance needs are different from someone managing three student HMOs or a block of flats. Yet many landlords still default to whatever policy is cheapest on a comparison site—only to discover gaps when they need to claim.
The smart approach? Build a policy around risk, not assumptions.
If you’re a portfolio landlord, look for a provider that can cover all your properties under one plan. This not only cuts admin time but can reduce per-property costs and give you more negotiating power on renewals.
If you rent to DSS tenants or manage an HMO, prioritise liability cover and legal expenses. These setups come with more touchpoints for disputes, damage, and injury claims. Likewise, landlords with furnished lets should ensure they’re covered for malicious damage and contents—even if it’s just white goods or beds.
Also check:
- Loss of rent cover – especially if the property is your main income source
- Home emergency cover – for faster response on critical repairs
- Excess levels and exclusions – what’s not covered is just as important as what is
And don’t overlook the service side. Some insurers provide 24/7 landlord helplines or access to vetted contractors for repairs. If you’re self-managing multiple properties, that support network can be as valuable as the policy itself.
In short: the best landlord insurance isn’t the cheapest—it’s the one that pays out when it matters.
Final thoughts
Landlord insurance isn’t just a checkbox for cautious property owners—it’s a calculated response to real risks that arise the moment you hand over keys to a tenant.
Whether you’re managing a single buy-to-let or juggling a portfolio of HMOs and multi-property investments, the right policy protects far more than bricks and mortar. It protects your rental income. Your legal position. Your time, sanity, and ability to respond quickly when something goes wrong.
The key is to match cover to context. A landlord renting to working professionals in a low-risk area doesn’t need the same policy as someone leasing a block of flats to student tenants. And a one-size-fits-all approach rarely holds up under a serious claim.
So if you’re unsure what you need, take a step back. Look at the risk profile of your property, your tenants, and your financial reliance on rental income. Then build your cover around that—not the cheapest premium you can find on a comparison site.
Because when something does go wrong—and it often does—it’s not just about whether you had insurance. It’s whether you had the right insurance.
Frequently Asked Questions (FAQs)
No, tenants cannot usually claim on a landlord’s insurance. The policy protects the landlord’s property and liability, not the tenant’s personal possessions or legal issues.
It depends. Most policies cover accidental damage, but malicious or intentional damage may require specific add-ons. Always check the wording of your policy.
Yes, but the cover may differ. If the freeholder already insures the building, you may only need landlord contents, liability, and loss of rent cover.
Yes, landlord insurance premiums can usually be claimed as an allowable expense against rental income, reducing your taxable profit.
Boilers and heating systems are typically covered under buildings insurance for sudden damage. For breakdowns or repairs, you’ll need home emergency or boiler cover.
Yes, but not all insurers offer cover for unoccupied periods. You may need a specialist unoccupied property policy or add-on if the property is empty for over 30 days.
Some policies include legal expenses cover that can help with eviction proceedings. However, this is usually an optional extra, not a standard feature.
Typically, no. Loss of rent cover applies when the property becomes uninhabitable due to damage—not for voluntary or early tenant departures.