What is landlord insurance?

Definition of landlord insurance

Landlord insurance is a form of financial protection for landlords who are renting out a property to tenants. It provides cover for a range of potential costs associated with renting out a property, including structural damage to the property, damage to items within the property and loss of rent.

What does landlord insurance cover?

There are different types of landlord insurance available to cover different risks, but many insurance policies will include the following as standard:

  • Property owner’s liability, which protects against loss, damage or injury to a third party. For example, if a courier trips on a loose step while delivering a package to a property, the landlord could be held liable for compensation.
  • Buildings insurance, which protects against the cost of structural damage to a property up to the cost of rebuilding it entirely.
  • Contents insurance, which protects against the cost of damage or loss of items belonging to the landlord (for example, furniture or white goods).
  • Loss of rent cover, which protects against loss of rental income if the property becomes uninhabitable due to another insured issue (for example, if the property was made uninhabitable by a fire in the building).

Different insurance providers may include different coverage as standard, so landlords should thoroughly research what insurance they need before choosing a package. 

Other types of cover that may feature in a landlord insurance policy include protection against the cost of legal fees, accidental damage by tenants, plumbing and drainage issues, and boiler breakdowns.

FreeAgent for Landlords

FreeAgent for Landlords is designed to make it easy for you to manage your property finances and will include all the relevant functionality of FreeAgent, including features that can automate the process of recording rental income. You can also use FreeAgent for Landlords to make Self Assessment submissions directly to HMRC. Find out more.

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