How much does landlord insurance cost?

Landlord insurance can help if something goes wrong at your rental property, such as damage by tenants, fire and floods, or unauthorised alternations. It can also help to protect you against loss of rent if the property is uninhabitable due to an insured event. Just Landlord’s landlord insurance includes 40 covers as standard, helping to protect you against various types of buildings and contents damage.

The cost of landlord insurance varies depending on your property, type of cover, and individual circumstances. Many people choose to make a monthly payment to spread the cost of the insurance over the year. You can pay by interest-free Direct Debit with Just Landlords, managed by Premium Credit Ltd (PCL).

Many factors can affect the price of landlord insurance, including the type and value of your property, the location of your rental home, the type of cover you need, and other circumstances. Many providers consider the following factors when pricing your policy:

• Property value: Expensive or bigger properties will likely cost more to insure than smaller homes.
• Property location: Properties in areas with higher crime rates or risks of flood, fire, and theft could have higher insurance rates.
• Type of tenant: The cost of insurance can vary depending on the type of tenant, such as a family or a group of students.
• Claims history: If you have a history of claims, it could increase the cost of your policy. Or, you may have a few years of no claims discount which may lower the price.
• Rebuild cost: You will need to accurately tell insurance providers how much it costs to rebuild your rental property. This includes the cost of reinstating the structure, plus architect fees, demolition and clearing of the site, and planning and legal costs.

The Building Declared Value (BDV) is an important factor influencing the cost of your policy. For example, if the BDV is 25% less than the correct Building value, this will be classed as under insurance. If this happens then each claim you make may be reduced by 25%, which can leave you financially liable and having to fund some of the repair work.

If you have never reviewed the BDV or haven’t checked it in a while, it may be worth commissioning a surveyor for a new valuation. You could do this as part of a periodic valuation check to make sure your house is valued correctly. You can also use an online rebuilding cost calculator, such as the one provided by the Building Cost Information Service (BCIS).

The type of insurance you may want as a landlord or homeowner differs. Homeowners’ insurance can cover you for risks such as fire, flood, theft, and damage to your buildings and contents. However, if you’re a landlord, you face additional risks at your rental property. These include loss of rent, damage by tenants, and liability claims, which wouldn’t typically be covered by standard home insurance.

If something goes wrong, you could be financially liable and left out of pocket. It could also void homeowner insurance, so it’s important to tell your provider if your property is let out.

Landlord insurance policies can include cover for loss of rent, malicious damage, and legal claims in the event of an insured peril. It’s important to check the wording of your policy to see what is or isn’t covered.

It’s always worth comparing a few quotes online first to see how pricing and cover differs from provider to provider. You can also call many insurance providers to get a policy quote over the phone or use a live chat service if they have one. Be sure to read the reviews of any provider before you go ahead with your quote and check the policy wording carefully.

Our landlord insurance is rated 5 star by Defaqto, the financial product rating experts, and our customers love us too, with an overall rating of 1,000 “Excellent” on Trustpilot*. To get a quote, fill out our online form. You can also speak to a member of our team on 0808 168 9220.

Just Landlords offers landlord insurance to help keep you and your buy-to-let protected against costly damage and claims. To get a quote, fill out our online form. You can also speak to a member of our team on 0808 168 9220.

Please note that these Frequently Asked Questions are not a substitute for the policy wording. For full terms and conditions please see the policy documentation.

Is landlord insurance more expensive than home insurance?

Landlord insurance can be more expensive than standard home insurance because of the additional risks associated with owning a rental property. These include tenant damage, loss of rent, and liability claims.

How much should I pay for landlord insurance?

Prices vary depending on your circumstances and how much cover you want. The price you pay can depend on a range of factors, including:

• The level of cover you need – how much cover you need for your property affects the cost.
• Where your property is located – properties situated in high-risk areas, such as flood-prone regions or areas with high crime rates, may increase your premium.
• Your claims history – a history of frequent claims may result in higher premiums.
• Your property – the size, age, and condition of your property also influence insurance costs. Older properties or those with specific features, such as swimming pools, may require additional cover, which can increase your premium.

Do I need landlord insurance?

Although it’s not a legal requirement, it can be beneficial to have suitable landlord insurance. Without it, you could be personally responsible for covering costs if things go wrong at your rental property. For example, if a tenant accidentally damages your contents or a flood means your tenants need to move out and live in alternative accommodation.

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Just Landlords accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein. FP1733-2024