Getting the Best Landlord Insurance Deal in the Era of Renters’ Rights

With insurance premiums rising and new legislation changing the rental landscape, it's more important than ever for landlords to review their insurance cover. The right policy can protect your investment, your rental income, and your peace of mind.

Here's what every landlord should know about landlord insurance in the era of the Renters' Rights Act.

Why Landlord Insurance Matters

While landlord insurance isn't a legal requirement, it's considered essential by most property owners.

• Around 85% of landlords choose to have landlord insurance, helping protect themselves against unexpected costs.
• Most buy-to-let mortgage lenders require suitable landlord insurance as part of their lending conditions.
• Standard home insurance isn't designed for rental properties, so if you let out a property—or even just a room—you'll need specialist landlord cover.

What's Usually Included?

Most standard landlord insurance policies provide cover for:

• Damage to the building caused by events such as fire, flooding or storms.
• Loss of rental income if the property becomes uninhabitable following an insured event.
• Property owner's liability, protecting you if a tenant or visitor suffers an injury linked to the property.

Many insurers also offer optional extras, including:

• Legal expenses cover
• Rent guarantee insurance
• Boiler and emergency home cover
• Accidental damage protection
• Malicious damage by tenants
• Contents insurance for furnished properties

How the Renters' Rights Act Is Changing Insurance

The introduction of the Renters' Rights Act has prompted insurers to adapt their products to reflect the changing risks landlords face.

Key trends include:

• Higher premiums. Insurance costs have increased significantly due to inflation and changing regulations.
• Greater demand for rent guarantee insurance. As possession processes may take longer, more landlords are protecting themselves against lost rental income.
• Increased interest in pet damage cover. With tenants expected to have greater rights to keep pets, insurers are expanding policies that cover pet-related damage.
• More specialist products. Insurers are introducing flexible policies tailored to modern landlords and evolving legislation.

Tips for Getting the Best Deal

Don't simply accept your renewal quote. A little research could save you hundreds of pounds each year.

Here are some ways to keep costs down:

• Compare several insurers before renewing.
• Review your level of cover to ensure you're not paying for protection you don't need.
• Increase your voluntary excess if you're comfortable covering smaller claims yourself.
• Bundle policies if you own multiple rental properties, as many insurers offer portfolio discounts.
• Keep your property well maintained, as lower-risk properties often attract lower premiums.
• Improve property security with approved locks, alarms or security lighting, which may reduce your premium.
• Read the exclusions carefully, particularly around unoccupied periods, tenant types and claim limits.

Don't Just Focus on Price

The cheapest policy isn't always the best value. Consider:

• How quickly claims are handled.
• The insurer's reputation and customer reviews.
• Whether legal expenses and rent guarantee are included or sold as extras.
• The maximum claim limits.
• Any exclusions that could affect your property or tenants.

A slightly higher premium could provide significantly better protection if something goes wrong.

Final Thoughts

With the rental market continuing to evolve, landlord insurance is becoming increasingly important. Reviewing your policy annually and making sure it reflects current legislation can help protect both your property and your rental income.

If you're unsure whether your current cover is still suitable, now is an excellent time to compare policies and ensure you're protected against today's rental risks—not yesterday's.