Please note: this service is not provided by The Mortgage Advice Professionals. We will introduce you to a specialist firm we are partnered with, who will advise you and arrange the cover. MAP will stay alongside you throughout, supporting you at every stage of the process
Standard home insurance won't cover a let property
Once a property is tenanted, an ordinary buildings and contents policy is generally not designed to respond. Landlord insurance — sometimes called buy-to-let insurance — is built around the risks that come with letting.
What a landlord policy usually covers
Buildings cover
Cover for the structure, based on the full rebuild cost. Most lenders require buildings insurance as a condition of the mortgage.
Landlord's contents
Cover for the things you own rather than the tenant, such as carpets, curtains, white goods and furniture in a furnished let.
This is usually a much smaller sum than an owner-occupier would need, but it still needs to reflect what is actually there.
Property owners' liability
Cover for claims from tenants, visitors or contractors who are injured or suffer damage in connection with the property.
It is an important element of landlord insurance, with limits typically substantial.
Options that can extend your protection
What affects the premium
The cost of landlord insurance depends on the property, the risks associated with it and the level of cover selected. Factors can include:
Property type
The type and construction of the property can affect the premium.
Location
Location and factors such as local flood history can influence the cost of cover.
Rebuild sum insured
The amount required to rebuild the property is taken into account when setting the cover.
Cover options
Additional protection such as rent guarantee, legal expenses and malicious damage can affect the premium.
Type of tenant
Policies can distinguish between working professionals, students, sharers and tenants in receipt of benefits.
Letting arrangements
The way the property is let can affect the policy and the price.
The tenant can make a difference
Landlord policies can price differently depending on who occupies the property. If the type of tenant changes, check that the policy still reflects the actual letting arrangement.
Two things to keep an especially close eye on
Unoccupancy
Cover is usually restricted once the property has been empty beyond a stated period between tenancies.
Tell your insurer during a void rather than assuming the existing cover continues unchanged.
Letting arrangements
If you switch from a single AST to an HMO or a short-term holiday let, the policy needs to change with it.
Not declaring a change in use can invalidate a claim.
Make sure the policy reflects how the property is actually let
Landlord insurance is built around the circumstances of the property and its tenants. The cover needs to match the way the property is occupied and the risks you want to protect against.
In particular, check the rebuild value, the tenant type, periods when the property may be unoccupied and any changes to the letting arrangement.
We'll help you understand what needs to be covered and where additional protection may be appropriate.
Cover for more than one property
If you own several properties, a portfolio policy covering all of them under one schedule is usually simpler to administer and can work out cheaper than insuring each one separately.
Getting it right
Landlord insurance needs to reflect the property as it is actually being used, rather than simply being treated as an ordinary home insurance policy.
The rebuild value, tenant type, letting arrangement, periods of unoccupancy and additional covers can all make a difference to what the policy provides.
Speak to one of our advisers and we'll help you work through the cover and understand where the important conditions apply.
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