Letting out a property you used to live in, or buying one specifically to rent out, changes what insurance you actually need. A standard home insurance policy is designed around an owner-occupier, and using it to cover a rented property can leave you seriously underinsured — or invalidate the policy altogether.
Why standard home insurance usually isn't enough
Most standard buildings and contents policies specifically exclude or restrict cover once a property is let to tenants, because the risks are genuinely different: a landlord isn't present day-to-day to spot problems early, tenants may not treat the property the way an owner-occupier would, and the property may be unoccupied between tenancies. If you don't tell your insurer the property is let and something goes wrong, there's a real risk the insurer refuses the claim entirely for non-disclosure.
What landlord insurance typically includes
Buildings cover
Covers the structure of the property — walls, roof, fixed fittings — against risks like fire, flood, storm damage and subsidence, similar in principle to standard buildings insurance but written on terms that account for the property being tenanted.
Contents cover
Covers items the landlord owns and provides — furniture in a furnished let, white goods, carpets and curtains. It doesn't cover a tenant's own possessions; tenants need their own contents insurance for that.
Landlord liability cover
Covers the landlord's legal liability if a tenant, or a visitor to the property, is injured or their property is damaged due to the landlord's negligence — for example, a poorly maintained staircase causing a fall.
Optional extras worth knowing about
| Add-on | What it covers |
|---|---|
| Loss of rent | Lost rental income if the property becomes uninhabitable due to an insured event, such as a fire |
| Unoccupied property cover | Extends cover during void periods between tenancies, which standard terms often restrict after a set number of days |
| Accidental damage | Covers damage that isn't malicious but also isn't due to an insured peril, such as a tenant accidentally causing a leak |
| Legal expenses cover | Helps with the cost of pursuing rent arrears or evicting a tenant through the proper legal process |
Common mistakes
- Continuing on a standard home insurance policy after moving out and letting the property, without telling the insurer
- Assuming tenants' belongings are covered by the landlord's contents policy — they aren't, and tenants should be encouraged to arrange their own
- Letting cover lapse during a void period between tenancies, when unoccupied property cover may be needed
- Under-insuring the buildings sum insured, based on the property's market value rather than its actual rebuild cost
What to do next
If you're about to let out a property for the first time, tell your existing insurer or arrange a dedicated landlord policy before tenants move in, not after. If you already have tenants in place on a standard home insurance policy, contact the insurer as soon as possible to correct it — the earlier this is sorted, the less risk there is of a claim being refused later.