Protecting your property, yourself, and your tenants is paramount as a landlord. While conventional home insurance policies may seem sufficient, they do not cover rental activities. As a result, landlords need to consider a specialised landlord insurance policy to safeguard their investments properly.
Is Landlord Insurance Mandatory?
While there is no legal obligation for landlords to take out a dedicated insurance policy, mortgage lenders often require it. With landlord insurance, you may avoid breaking the terms of your mortgage agreement. Furthermore, standard home insurance will not cover rental activities, making it vital to secure comprehensive landlord insurance.
The Right Cover for Your Needs
Connect Mortgages can help you find the right landlord insurance policy for your specific needs. Our cover options include property owners’ liability insurance, contents insurance, and buy-to-let buildings cover.
We can assist if you need to protect your property from damage, safeguard against compensation claims, or cover legal fees during void periods. Our team ensures you have the right protection for complete peace of mind.
Do I need landlord insurance if I live on the property?
If you rent out part of your property, a standard home insurance policy may not provide adequate cover. In most cases, a specialist landlord insurance policy is required. You must also notify your insurer that you live on the premises.
To keep your landlord insurance valid, a tenancy agreement is usually necessary. This agreement should grant the tenant exclusive access to at least one room in the property.
Is landlord insurance necessary if I already have buildings insurance?
If you plan to rent out your property, check with your insurance provider to confirm whether your existing home buildings insurance remains valid. In most cases, you will need a specialised landlord insurance policy. This may include buildings insurance, landlords’ contents insurance, and property owners’ liability insurance.
Sometimes, you may be able to amend your current buildings insurance to cover rental activities. Even if this is an option, taking out a separate landlord insurance policy is often better. This ensures sufficient protection against rental-related risks, including property owners’ liability, tenant default, and legal expenses insurance.
Although these types of cover are not legally required, check whether your mortgage lender specifies any insurance requirements. Ensuring you have the right insurance can help protect your property and financial interests as a landlord.
Do I require both landlord insurance and buildings insurance?
You can purchase buildings insurance as part of your landlord insurance policy. Landlord insurance typically includes property owners’ liability insurance, buildings insurance, landlords’ contents insurance, and other relevant rental-related cover.
Remember that a standard residential buildings insurance policy may not provide cover if you rent out your property, so opting for specialised landlord insurance is usually necessary. Additionally, buildings insurance is often a requirement set by mortgage lenders.
Do I need landlord insurance when renting a room?
If you rent out a room in your home, such as to a lodger, your standard home insurance may not provide cover. Most home insurance policies state that only the policyholder and their immediate family can live in the property.
You should contact your insurer to check if your policy can be amended to include a lodger. However, you may need to take out specialist landlord insurance. This type of insurance often requires a tenancy agreement with the lodger. The agreement should grant them exclusive use of at least one room and prevent you from entering without their consent.
If you rent rooms to three or more people from separate households, this is classified as a house in multiple occupation (HMO). In this situation, you must contact your local council to apply for an HMO licence. Standard home buildings and contents insurance will not cover HMOs. Instead, you will need a landlord insurance policy to safeguard your property.
Do I need landlord insurance for a flat?
Renting out a flat is similar to renting out a house; typically, you’ll require landlord insurance instead of standard residential home insurance for adequate cover.
If there’s a freeholder involved, they may arrange buildings insurance for the entire building. However, you must inform them about renting out your part of the property to ensure the policy is updated accordingly. Nonetheless, you might still choose to purchase separate landlord insurance that includes additional cover, such as property owners’ liability and landlords’ contents insurance. 
If you are responsible for arranging the building’s insurance, ensure that the policy covers your rental activities. Remember that having adequate buildings insurance is likely a requirement specified by the terms of your mortgage.
What landlord insurance do I need for a flat?
The types of landlord insurance required for your flat depend on your preferences. However, checking the requirements set by your mortgage lender and leasehold agreement is vital. Most lenders typically require adequate buildings insurance as a minimum.
If a freeholder is involved, they may arrange the buildings insurance for the entire property. In such cases, you should notify the freeholder about letting your flat. This ensures the policy provides proper coverage. You may also consider additional landlord insurance options, such as property owners’ liability and landlords’ contents insurance.
At Connect Mortgages, we provide various landlord insurance options for flats and houses. These options include buildings insurance, property owners’ liability insurance, legal expenses cover, and accidental damage cover. These policies help protect against damage and unexpected costs.
Do I need landlord insurance and buildings insurance?
Landlord insurance is a type of home insurance designed for rental properties. You do not need separate landlord and home insurance policies.
A landlord insurance policy can cover buildings and contents against damage caused by fire or flood. It may also protect against rental-specific risks, such as property owners’ liability. This cover safeguards you if a tenant or visitor takes legal action. Additionally, tenant default insurance can cover unpaid rent if a tenant fails to pay.
Landlord insurance provides a comprehensive solution for risks related to renting out property.
Do I need landlord insurance when renting to family members?
Renting your property to family members does not exempt you from needing landlord insurance. Standard home insurance policies usually do not apply when renting the property out, even to family members.
Obtaining a landlord insurance policy is recommended in such cases. This typically requires a tenancy agreement. You should also seek approval from your mortgage lender.
Depending on your situation, you may decide that certain covers, such as tenant default insurance and legal expenses insurance, are not required when renting to family members. In such cases, you can select a landlord policy that includes essential cover, such as buildings insurance and property owners’ liability insurance. Connect Mortgages is dedicated to assisting landlords with insurance requirements. We help landlords secure the most appropriate cover for their specific needs. With our support, landlords can feel confident knowing their properties and financial interests are well protected, ensuring a secure and successful experience.
Thank you for reading our publication “Why do I need landlord insurance? | Understanding Insurance.” Stay “Connect“-ed for more updates soon!
