Stepping into the world of property letting can be a rewarding move, whether you’re building a portfolio, or making use of a single buy-to-let, but alongside the potential income comes the responsibility of managing tenants, maintaining your property and keeping up with regulations.
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How big is the UK landlord insurance market?
Data reveals the average landlord claim exceeded £4,200 in 2025, with the total UK market being valued at £911.7 million – an increase of 7% since 2023. More than 65% of landlords hold specialist cover, with water damage due to leaks being the biggest problem, accounting for around one-third of all claims.
Unfortunately, 70% of properties are underinsured, and despite the risks, 15% of landlords lack dedicated coverage. This can become a serious problem if you ever need to make a claim, as the payout might not cover the actual cost of putting things right.
When it comes to what you might pay, there’s quite a range. A very basic buildings policy might set you back around £200 a year, but once you start adding more comprehensive protection, including things like liability or rent cover, it’s more realistic to expect something in the region of £300 to £500 annually.
Where your property is located also makes a big difference. Premiums can vary hugely depending on risk factors like crime rates or flood exposure. Some landlords might pay as little as £66 in low-risk areas, while others in high-risk locations could be looking at costs exceeding £1,100 a year.
Most landlords will have cover for buildings, contents, liability protection, rent guarantee and legal expenses.
Key components of landlord cover
Buildings insurance is typically the foundation, protecting the structure of your property including walls, roofs and permanent fixtures. If your portfolio is furnished, you can also take out a policy for items such as sofas, beds, carpets and appliances.
Liability protection kicks in if someone is injured on your property and you’re found responsible. Rent guarantee and rent protection policies can help if tenants fail to pay, or if the property becomes uninhabitable due to an insured event. Legal expenses cover can be added to offer support with disputes, evictions or contract issues, which can otherwise become costly and time consuming.
If you’re managing a house in multiple occupation, student accommodation, or a property linked to local authority leasing, you may need more tailored options, as these setups often come with different risk profiles and a standard policy might not fully reflect that.
Do you have to have landlord insurance?
Across the UK, it isn’t a legal requirement and technically, you can rent out a property without having a dedicated policy in place. However, that doesn’t necessarily mean it’s optional in a practical sense.
If you have a buy-to-let mortgage, your lender will almost certainly require you to have appropriate cover, usually for the buildings at a minimum. In many cases, this needs to be a landlord specific policy. Failing to meet these conditions could put you in breach of your mortgage agreement.
It could also cause you financial ruin, as insurance providers pay out billions each year for property damage caused by natural events like fires and storms, according to the Association of British Insurers. Without this, those costs would fall entirely on you and may be beyond your means.
What is covered by landlord insurance?
Designed to protect landlords from a range of risks associated with renting out property; one of the main areas is property damage caused by storms, fire, flooding and sometimes vandalism. If the structure is damaged, it helps with the cost of repairs or rebuilding.
Liability claims are another major element. If a tenant or visitor is injured due to an issue such as faulty wiring or a loose fixture, a relevant policy can help with compensation claims and legal costs. These settlements can be substantial, which is why this type of protection is often considered essential.
Loss of rent is also commonly included; if your property can’t be lived in due to an insured incident, this can compensate you for missed rental income while repairs are carried out. Rent guarantee policies can help in situations where tenants fall into arrears.
Given how complex and time consuming legal processes can be, a legal expenses policy can also be a useful safeguard. It’s important to remember that the details can vary significantly between different companies. Taking the time to read through the small print and understand exactly what’s included can help avoid nasty surprises later.
What does landlord insurance not cover?
One of the most common exclusions is tenant belongings. Anything owned by your tenant is their responsibility, not yours. If they want protection for their possessions, they’ll have to organise this at their own expense.
Wear and tear is another key area that’s the landlord’s responsibility. Over time, things like carpets, furniture and appliances will naturally degrade through use. Insurance is designed for unexpected events, not gradual deterioration. This means that while you may be reimbursed for accidental or malicious damage, everyday wear isn’t included.
Poor maintenance can also invalidate a claim. If damage occurs because an issue was left unresolved, such as a leaking pipe that was ignored, insurers may refuse to pay out. Regular upkeep and inspections remain a crucial part of being a landlord.
There can also be restrictions around vacant properties. Many policies limit cover if a property is left unoccupied for a certain period, often 30 or 60 days. If you anticipate a gap between tenants, you may need additional premiums to stay protected.
Landlords across England, Scotland, Wales and Northern Ireland must meet specific regional requirements around gas safety, electrical checks and fire safety measures, with the exact regulations differing slightly between the home nations. For example, annual gas safety checks are a legal requirement across the UK, while electrical safety standards have been tightened in England in recent years. Insurance won’t replace these obligations, and failing to meet them could affect your ability to make a claim.
Every property and tenancy is slightly different, so it’s worth taking the time to review what’s relevant for your situation.