Landlord liability insurance explained and why you might need it
Legal liability as an occupier or a landlord and property owners’ liability insurance can be included with a landlord insurance policy.
It’s important to understand what protection is provided by liability insurance for landlords, as part of a comprehensive policy that is suitable for your rental property.
Do landlords need liability insurance?
Residential landlords have no legal requirement to take out landlord liability insurance, but it can be beneficial when letting a property.
You have a legal responsibility to provide a safe property but, even with your best efforts, accidents can happen. In which case, you could be held liable for injury or loss to a tenant or a visitor.
Of course, not all injuries to tenants and their visitors can be laid at your door but, if your negligence is proven then, you could be faced with compensation and legal fees to pay. This could severely affect your cash flow and ability to stay in the rented property business.
This is where landlord liability insurance can help.
What does landlords legal liability insurance cover?
A policy can cover legal fees and any compensation awarded if your negligence is found to have caused an accident. Liability insurance can also cover the compensation and any resulting legal fees to a third party such as a tenant, visitor, or a tradesperson.
Legal liability as an occupier or landlord – for your legal liability as a result of your actions if you are or had been the property occupier for an insured amount you become legally liable to pay as damages for:
- bodily injury
- damage to property
caused by an accident happening at the premises during the period of insurance.
Furniture and appliances can break or become hazardous at any point, so even if you perform periodic inspections, you can’t be certain an accident won’t happen. If repairs are needed, it’s best to act as soon as you’re aware, to help avoid events that could lead to a claim. Stress to your tenants the importance of letting you know as soon as a problem arises. Of course, once you’ve been informed of a defect it is important to act quickly otherwise there can then be little doubt that you have been negligent if there is an incident.
How to buy liability insurance for landlords
Liability cover can be a standard offering in many landlord insurance policies, so it’s important to check what’s included before buying a policy. You can visit the landlord insurance page on our website to see the list of risks we include for buildings cover as standard, including property owners’ liability and occupier or landlord’s liability.
How can I avoid a liability claim?
Periodic building surveys can help to highlight hazards within a property that may lead to a liability claim. The surveyor may even insist on urgent work being scheduled, such as roof repairs to prevent tiles falling and possibly injuring someone. Of course, no-one wants to hear bad news, but it’s better to stay on top of structural problems and prevent a risk from becoming a big liability claim.
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. FP668-2023
