What types of residential property can be insured?
Residential landlords own a wide variety of properties, from individual flats and terraced houses to larger portfolios containing different types of accommodation.
The appropriate insurance will depend on the property, how it is occupied and the cover required.
If a building contains both residential and commercial premises — for example, a flat above a shop — mixed-use landlord insurance may be more appropriate.
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Detached houses
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Semi-detached houses
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Terraced houses
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Flats and apartments
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Maisonettes
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Purpose-built flats
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Converted flats
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Furnished and unfurnished properties
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Individual buy-to-let properties
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Multiple residential properties
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Residential property portfolios
Why isn't standard Home Insurance enough for a rental property?
Standard home insurance is generally designed around a property being occupied by the homeowner.
Once a property is let to tenants, the circumstances and risks change.
A landlord does not have the same control over the day-to-day occupation of the property, and there are additional considerations such as rental income, landlord liabilities and tenant-related risks.
If you decide to let a property that was previously your home, you should tell your insurer rather than assuming the existing home insurance will continue to provide suitable cover.
Residential landlord insurance is specifically designed around properties occupied by tenants.
- Tenant occupation changes the risk profile
- Rental income may need protecting
- Landlord liabilities need specific consideration
- Tenant-related risks may need specialist cover
- Ordinary home insurance may no longer be suitable
Residential Landlord Insurance for buy-to-let properties
For many landlords, residential property is an investment intended to generate rental income over the long term.
Buy-to-let landlord insurance can protect the property itself while also providing additional cover relevant to letting it to tenants.
This can include buildings insurance, landlord contents, property owners' liability and loss of rent following insured damage.
If you have a buy-to-let mortgage, your lender may also require appropriate buildings insurance to be maintained on the property.
The exact requirements will depend on your lender and mortgage agreement.
Landlord Insurance for flats and apartments
Insuring a let flat can work differently from insuring an entire house because the building itself may already be insured under a block policy arranged by a freeholder or management company.
In these circumstances, it is important to understand what the existing buildings policy covers and what protection you still require as the landlord of the individual flat.
You may still need cover for landlord-owned contents, liabilities, rental income and other risks that are not provided by the block buildings insurance.
If you are unsure what cover you need, having details of the existing block policy available can help when discussing your requirements.
Landlord Insurance for furnished properties
If you let a furnished or partially furnished property, the furniture and other items you provide can represent a significant additional investment.
Landlord contents cover can protect insured belongings provided for use by tenants, such as furniture and certain appliances, subject to the policy terms.
When considering the amount of contents cover required, think about the cost of replacing the items you own rather than the possessions belonging to your tenants.
Your tenants remain responsible for arranging suitable cover for their own belongings.
Residential property portfolio insurance
As a landlord's portfolio grows, arranging separate policies for every property can become increasingly difficult to manage.
Depending on the properties and insurer, multiple residential properties may be insured together under a portfolio arrangement.
This can make managing insurance across several properties easier while allowing the insurer to consider the different buildings and occupancies within the portfolio.
Whether you own two rental properties or a larger portfolio, speak to City Insurance about the options available.
Rebuild value vs market value
When arranging landlord buildings insurance, one of the important figures you may need is the property's rebuild value.
This is not necessarily the same as the property's market value.
Market value reflects what the property could sell for, including factors such as its location and local property market.
Rebuild value is concerned with the cost of reconstructing the insured building following serious damage, including relevant materials, labour and associated costs.
Making sure the declared value appropriately reflects the property is important because underinsurance can affect a claim.
What happens if my rental property becomes empty?
Residential properties can become temporarily unoccupied between tenancies, during renovation or while a landlord searches for a new tenant.
An empty property can present different risks from an occupied one, and landlord insurance policies can contain conditions relating to periods of unoccupancy.
The cover available may change after the property has been empty for a specified period, and you may be required to take certain precautions while it remains vacant.
If your rental property becomes unoccupied, tell your insurer or broker so they can confirm how this affects your cover.
For properties expected to remain empty for longer periods, specialist vacant property insurance may be appropriate.
Does Landlord Insurance cover tenants' belongings?
Landlord insurance is intended to protect the landlord's insured property and interests.
If landlord contents cover is included, this can protect insured furniture, appliances and other contents belonging to the landlord.
It does not generally insure the personal possessions belonging to tenants.
Tenants should consider arranging their own contents insurance if they want protection for their belongings.
- Landlord-owned furniture
- Landlord-owned appliances
- Insured contents belonging to the landlord
- Tenant possessions arranged separately
