Landlord insurance is not a legal requirement, but it is essential protection for any landlord letting residential property. As a letting agent, advising your clients on the right insurance cover is both a value-added service and a risk management measure for your own business. This guide covers the key types of cover and what to look for.
What does landlord insurance cover?
A standard landlord insurance policy typically includes: buildings insurance (covering the structure of the property against fire, flood, storm, and subsidence); contents insurance (covering landlord-owned furnishings and appliances); property owners' liability insurance (covering claims from tenants or visitors injured on the property); and loss of rent cover (paying out if the property becomes uninhabitable due to an insured event). Some policies also include legal expenses cover and home emergency cover.
What is rent guarantee insurance?
Rent guarantee insurance (also called rent protection insurance) pays out if a tenant stops paying rent. It typically covers up to 12 months of missed rent and includes legal expenses for eviction proceedings. It is particularly relevant in the post-Section 21 environment, where possession proceedings are expected to take longer and cost more. Agents should discuss rent guarantee cover with all landlords, particularly those with single-property portfolios where a non-paying tenant could cause significant financial hardship.
What should agents advise their landlords?
Agents should recommend that all landlords have at minimum: buildings insurance, property owners' liability, and loss of rent cover. For landlords with furnished properties, contents insurance is also advisable. Agents should remind landlords to check that their policy is specifically designed for rental properties — standard home insurance policies typically exclude or limit cover for tenanted properties and may be invalidated if the property is let without notifying the insurer.
EPC compliance and insurance
Some landlord insurance policies include conditions around EPC compliance. Agents should remind landlords to check their policy terms and ensure their EPC is current and valid. A lapsed EPC can affect the validity of a claim.
Landlord insurance for your clients
AXA landlord insurance covers buildings, contents, liability, and optional rent guarantee. Arrange a policy online in minutes.