Landlord and tenant insurance: what you need to know

Landlords and tenants have different home insurance needs, but many people are unsure about what kind of cover they should get.

That's why Confused.com's home insurance experts have conducted a new study to find out the most common home insurance questions for rented properties in the UK.

The study revealed that more than 8,000 people have searched for 'What does landlord insurance cover?' in the last year.

This was the second most popular question, after 'How much is landlord insurance?'.

Popular questions from landlords about insurance cover

Other popular questions from landlords about insurance cover included: 'What is contents insurance?', 'What is tenant's insurance?', and presumably tenants were Googling: 'Do I need home insurance if I rent?'.

Confused.com's home and lifestyle expert, Matthew Harwood, said: “This guide should help landlords and tenants understand the basics of home insurance for rented properties in the UK.

"For more specific advice, it's always best to contact a licensed insurance provider or broker."

Below, Matthew answers the top 10 landlord insurance questions for rented properties:

How much is landlord insurance?

Matthew says: "Landlord insurance costs vary depending on several factors, such as the value and location of your property, the level of cover you want, the type of tenants you have, and whether you add any extra cover. You could pay anything from a few hundred to several thousand pounds a year. To get the best deal, you should compare quotes from different providers."

What does landlord insurance cover?

He said: "Landlord insurance typically covers the cost of repairing your property if it's damaged by events like fire, flood or vandalism. It can also protect you from legal claims if someone is injured on your property and sues you. Additionally, it may cover the loss of rent if your property becomes uninhabitable due to an insured event."

What is landlord insurance?

Matthew points out: "Landlord insurance is a type of home insurance for people who rent out their properties. It covers the extra risks that landlords face, such as property damage and loss of rent. It's more comprehensive than standard home insurance, which is designed for homeowners who live in their properties."

What insurance do landlords need?

Matthew advises: "Landlords need landlord insurance to protect their property and liability. They may also need contents insurance if they provide any furniture or appliances to their tenants. Other optional covers include legal expenses insurance, which covers the cost of legal disputes with tenants or authorities, and rent guarantee insurance, which covers the rent if the tenants fail to pay."

Do I need home insurance if I rent?

Matthew told us: "If you rent a property, you don't need buildings insurance, as that's the responsibility of your landlord. However, you should consider getting contents insurance to protect your personal belongings, such as your furniture, gadgets, clothes and jewellery. Contents insurance covers the cost of replacing or repairing your items if they are stolen, lost, or damaged by events like fire, flood, or burglary."

What is contents insurance?

Matthew says: "Contents insurance is a type of home insurance that covers the items you own in your property. It can include anything from your sofa and TV to your laptop and phone. Contents insurance can help you replace or repair your belongings if they are affected by events like fire, flood, theft, or vandalism."

What does contents insurance cover?

He said: "Contents insurance covers the cost of replacing or repairing your items if they are damaged or destroyed by events like fire, flood, theft or vandalism. It can also cover accidental damage, such as spilling wine on your carpet or dropping your phone. Some policies may also cover your items when you take them outside your home, such as your bike or camera."

How much does contents insurance cost?

Matthew reveals: "The cost of contents insurance depends on the value and type of items you want to cover, the level of cover you choose, the security of your property, and your personal details, such as your age and claims history. You can reduce the cost of contents insurance by increasing your excess, installing security measures, and shopping around for the best deal."

How much contents insurance do I need?

Matthew offers this advice: "The amount of contents insurance you need depends on the value of your belongings. You should make an inventory of all the items you own and estimate how much it would cost to replace them. You should also check the limits and exclusions of your policy, as some items may have a maximum payout or require additional cover, such as jewellery, art, or antiques."

What is tenant's insurance?

He said: "Tenant's insurance is another name for contents insurance for renters. It covers your personal belongings in your rented property. It can also cover your liability if you cause damage to your landlord's property or furniture, such as breaking a window or staining a carpet."

'Landlord insurance is crucial when renting out a property'

The managing director of Accommodation for Students, Simon Thompson, said: "Landlord insurance is crucial when renting out a property, whether that is to student tenants or not.

"The insurance should cover everything the landlord will want to be covered - this is not a time to be cutting corners and going for a really cheap option."

He adds: "There are still landlords renting out properties who don't have insurance cover, or don't have enough cover.

"For peace of mind, having a good insurance policy with a reputable provider will be worth it if you should ever need to make a claim."