Do I need landlord insurance if I have home insurance? Do I need landlord insurance if I have home insurance?

Many property owners across the UK will have home insurance in place. This can cover them from issues such as leaking pipes, boiler breakdowns, smashed windows or accidental damage to the home’s fixtures and fittings.

But, if you don’t live in the property you own and you lease it out to tenants, then home insurance may not protect you as much as you might imagine.

Here, we explore the key differences between home and landlord insurance policies so you can know exactly what you need to enjoy peace of mind as a landlord and property owner.

Buildings and contents cover

Many home insurance policies will include buildings and fixtures and fittings cover, meaning that you can claim for accidental or malicious damage to:

• The building’s structure
• Standard fittings inside the home

A home insurance policy can often cover the costs of repair work to your property in the event of:

• External vandalism
• A break in
• Flooding
• Fire

If you’re not the person living in the property you own, and a tenant is ‘in situ’, then home insurance policies will often not cover the cost of wilful damage by the tenant.

If you’re renting your property out, you’ll likely find that a standard home insurance policy can’t cover many situations involving tenants.

Home insurance and landlord insurance have similarities — like buildings and fixtures and fittings cover — but landlord insurance includes additional covers that are specific to the risks of being a landlord. These additions can include:

Property owners’ liability insurance

This is one of the major areas where home insurance does not provide cover. Property owners’ liability cover (included as standard in the landlord insurance we provide) is designed to cover your liability to pay compensation and legal costs if a tenant or member of the public is injured or their property is damaged while in your property.

It’s similar to public liability insurance, but specifically for landlords rather than business owners.

While your home insurance may include parts of this cover, it usually doesn’t include cover for injuries to your tenants.

Claims example: A loose floorboard in your rented property caused your tenant to trip and fall. They suffered a mild concussion and decided to claim compensation for their injury. Property owners’ liability insurance could help cover the legal costs and compensation.

Landlords’ contents cover

Landlords’ contents insurance is designed to cover the repair or replacement cost of property belonging to the landlord in a rental property if it is damaged accidentally or maliciously by a tenant.

Say you rent a furnished property, which includes sofas and chairs. Most home insurance policies won’t cover the cost of damage or theft of the property owner’s contents in a home with a tenant in residence.

Claims example: A fire in a rented flat damaged the landlord’s furnishings, including the sofa, dining table and white goods. The tenant wasn’t at fault, so the landlord couldn’t claim against their deposit. Landlords’ contents cover could help pay for the cost of replacing the damaged items.

Rental income

Rental income insurance — also called loss of rent cover — is designed to help cover lost income if your property becomes uninhabitable due to an insured event — like a fire, flood or severe water damage.

If your tenants have to move out while repairs are carried out, this type of cover can pay out the rent you would have otherwise received during that period, helping you maintain cash flow. Unsurprisingly, home insurance won’t cover this.

Claims example: A severe escape of water from a burst pipe left your rental property uninhabitable for several weeks. The tenants had to move out, and you’ve lost at least a month’s rent. Rental income insurance could help cover the lost income during the repair period.

While neither home insurance nor landlord insurance is legally required for homeowners in the UK, having a good level of cover is seen as a sensible step to avoid unexpected costs in the event of damage to your property.

If you buy a property to let out rather than live in — known as buy-to-let — your mortgage provider may require you to take out landlord insurance. This is often a condition of the mortgage agreement. In situations like this, a standard home insurance wouldn’t be sufficient — even if it includes buildings and contents cover.

So, if you own a residential property for the rental market, landlord insurance offers broader protection than standard home insurance — particularly when it comes to property owners’ liability. Some home insurance providers won’t cover damage if the property is let to tenants.

A landlord insurance policy bought through Superscript for a residential property owner would include, as standard:

• Buildings cover
• Fixtures and fittings cover
• Property owners' liability

You can then also choose to add more covers to your policy, offering more tailored protection, including:

• Landlords’ contents cover
• Rental income protection
• Terrorism cover
• Employers' liability cover (for example, if you employ a janitor or admin assistant for your properties)

Finally, if you are the owner of commercial units that you let out to businesses, then you may want to consider commercial landlord insurance.