How much does landlord insurance cost?

Landlord insurance in the UK typically costs £150–£400 a year for buildings and liability cover on a standard house, according to comparison and broker data. The median premium is around £285 a year. What you actually pay depends on the property, the location, the tenants and how much cover you choose.

We are not an insurance broker and this isn’t advice; compare policies and read the policy wording.

Typical landlord insurance costs

These figures are indicative, based on broker statistics and comparison-site data. They are not quotes. Flats, HMOs, high-value properties and homes in flood-risk areas can cost more.

What landlord insurance typically covers

Policies vary a lot. Many landlord policies are built from some or all of these parts:

• Buildings cover. Damage to the structure, such as from fire, flood, storm or escape of water. Often the core of the policy if you own a house.
• Contents cover. Furniture, carpets, curtains and appliances you provide. Unfurnished lets may need only limited contents cover.
• Property owner’s liability. Claims from tenants or visitors who are injured or whose belongings are damaged because of the property’s condition.
• Loss of rent or alternative accommodation. Lost rent, or the cost of rehousing the tenant, if the property can’t be lived in after an insured event.
• Legal expenses. Help with legal costs in some disputes, such as possession claims. This is often an optional add-on.

Unpaid rent when a tenant simply stops paying is usually covered by a separate product. See rent guarantee insurance.

Check what each policy excludes as well as what it covers. Common areas to look at include malicious damage by tenants, empty periods between tenancies, and wear and tear.

What affects the premium

• Rebuild cost and property type. Bigger or older properties and listed buildings usually cost more to insure.
• Location. Flood risk, subsidence history and crime rates in the postcode all matter.
• Type of let. Insurers may price differently for student lets, HMOs or holiday lets.
• Furnished or unfurnished. More landlord-owned contents means more to cover.
• Level of cover. Adding legal expenses, rent guarantee or accidental damage raises the price.
• Excess. A higher voluntary excess usually lowers the premium, but you pay more if you claim.
• Claims history. Previous claims tend to push premiums up.
• Number of properties. Some insurers offer portfolio policies for landlords with several properties.

Mortgage lender and lease requirements

If you have a buy-to-let mortgage or your lender has given consent to let, your mortgage terms will often require you to keep the property insured for its full rebuild cost. Check your mortgage offer for the exact conditions.

If the property is a leasehold flat, the freeholder often insures the building and recharges you through the service charge. In that case you may only need contents and liability cover yourself. Read the lease to see what is already insured.

Why home insurance doesn’t cover a let

Standard home insurance is designed for owner-occupiers. Once you let the property, the risk changes and most home policies won’t cover it. If you let without telling your insurer, a claim could be refused.

This also applies if you are letting your own home temporarily, for example while working abroad. Tell your insurer before the tenant moves in.

How insurance fits into your annual costs

For a typical single let in England, insurance is usually one of the larger recurring costs alongside your safety checks:

All figures are typical market ranges, not quotes, and London and the South East are usually higher.

Comparing policies

• Compare like for like. Check the rebuild sum, the contents limit, the liability limit and the excess, not just the price.
• Read the policy wording, especially the exclusions and any conditions about empty periods, inspections and tenant referencing.
• Check the conditions you must meet. Some policies require regular inspections or valid safety certificates. Our landlord compliance checklist lists the certificates you need.
• Review it every year. Rebuild costs and your circumstances change.

Insurance is a regulated product. This page is general information only and doesn’t recommend any insurer or policy. If you are unsure what cover you need, speak to an FCA-authorised broker.