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What Does Landlord Insurance Actually Cover? (And What It Doesn’t)

Owning a rental property can be a smart investment, but it also comes with risks that standard home insurance may not cover. From tenant-related issues to property damage and loss of rental income, landlords face a very different set of challenges compared to owner-occupiers.

That’s where landlord insurance comes in. Dervensure offers access to property insurance solutions, including cover designed specifically for landlords who want to protect their investment and income.

If you’re renting out a property, here’s a clear breakdown of what landlord insurance typically covers—and what it doesn’t.

What is landlord insurance?

Landlord insurance is a specialist policy designed for properties that are rented out to tenants. It goes beyond standard buildings insurance by addressing risks linked to letting a property.

This type of cover is suitable for:

The goal is simple: protect both the property itself and the income it generates.

What does landlord insurance usually cover?

Policies can vary, but most landlord insurance includes several core areas of protection.

1. Buildings insurance

This covers the physical structure of the property.

It typically protects against:

If the building is damaged or destroyed, this cover helps pay for repairs or rebuilding.

2. Landlord contents insurance

If you rent out a furnished property, this can cover items you provide as the landlord.

Examples include:

It does not cover tenants’ belongings—that is their responsibility.

3. Loss of rental income

If your property becomes uninhabitable due to an insured event, this cover can help replace lost rental income while repairs are carried out.

This can be especially important if rental income is used to cover mortgage payments or other expenses.

4. Property owner’s liability insurance

This protects you if a tenant or visitor is injured on your property and holds you responsible.

For example:

Legal claims can be expensive, so this cover is often essential.

5. Accidental damage cover (optional)

Some policies allow you to add protection for accidental damage caused by tenants.

This might include:

Not all policies include this as standard, so it is often an add-on.

6. Legal expenses cover (optional)

This can help with legal costs related to tenancy disputes.

It may include:

For landlords dealing with difficult tenants, this can be a valuable addition.

Dervensure highlights its ability to arrange tailored property insurance through a wide panel of insurers, helping landlords find cover that suits their specific situation.

What landlord insurance does NOT usually cover

Understanding exclusions is just as important as knowing what is included.

Here are some common things landlord insurance may not cover.

1. Tenant belongings

A landlord policy does not cover the tenant’s personal possessions. Tenants should arrange their own contents insurance.

2. General wear and tear

Normal deterioration over time is not covered.

This includes:

Insurance is designed for unexpected events, not gradual decline.

3. Tenant negligence or malicious damage (unless added)

Some policies exclude damage caused by tenants unless specific cover is added.

Always check whether tenant damage protection is included.

4. Unoccupied properties (without notice)

If your property is empty for a certain period, cover may be limited or invalid unless you inform the insurer.

Empty properties are seen as higher risk.

5. Maintenance issues

Problems caused by poor maintenance are usually not covered.

For example:

Regular property maintenance remains the landlord’s responsibility.

6. Illegal activities

If tenants use the property for illegal purposes, claims may be rejected depending on the circumstances and policy terms.

Do you legally need landlord insurance?

Landlord insurance is not legally required in the UK. However, it is often strongly recommended.

You may need it if:

Standard home insurance is usually not valid for rental properties, so relying on it can leave you exposed.

Key factors that affect your landlord insurance

Several factors can influence the cost and type of cover you need.

Property type

Flats, houses, HMOs, and listed buildings may all require different levels of cover.

Location

Areas with higher risks of flooding or crime may affect premiums.

Tenant type

Insurers may consider whether tenants are:

Property condition

Well-maintained properties may be seen as lower risk.

Level of cover

Adding extras like accidental damage or legal expenses will increase the premium but may provide more complete protection.

Common mistakes landlords make

Even experienced landlords can make costly mistakes when arranging insurance.

Here are some to avoid:

A quick review each year can help ensure your cover still matches your situation.

Why working with a broker helps

Landlord insurance is not one-size-fits-all. Policies can vary widely in what they include and exclude.

Working with a broker like Dervensure can help you:

Dervensure positions itself as a broker with access to a wide range of insurance providers, helping clients across property, business, and personal insurance needs.

Final thoughts

Being a landlord comes with both opportunity and responsibility. While rental income can be rewarding, the risks should not be overlooked.

Landlord insurance provides a safety net. It protects your property, your income, and your financial stability when unexpected events occur.

Taking the time to understand what is covered—and what is not—can help you avoid surprises and make more informed decisions.

Speak to Dervensure about landlord insurance

If you own a rental property and want to make sure you are properly protected, Dervensure can help you arrange landlord insurance tailored to your needs.

Call 01406 423340 or email [email protected] to discuss your property and find the right cover for your situation.