Getting the most suitable property insurance cover
April 1, 2026Property insurance is important whether you live in your home or let it to tenants. Although buildings insurance forms the foundation of both home insurance and landlord insurance policies, the risks insurers assess differ depending on how the property is used.
Understanding those differences can help ensure the cover you arrange reflects your responsibilities as either a homeowner or a landlord.
Insurance for residential homeowners
If the property is your main residence, buildings insurance is typically arranged to protect the structure and fabric of the property against risks such as fire, storm damage, escape of water, vandalism, and impact damage (subject to policy terms).
Many homeowners also arrange contents insurance alongside buildings cover to protect personal belongings against risks such as theft, loss, or accidental damage where selected.
Home insurance policies are generally designed to reflect owner occupation rather than rental use and may include protection such as alternative accommodation cover if the home becomes temporarily uninhabitable following an insured event.
Getting adequate rebuild values
Buildings insurance is designed to cover the cost of rebuilding your home if it is destroyed by a major insured event. This usually includes demolition and site-clearance costs together with architectsâ, surveyorsâ, and other professional fees.
The rebuild value is reflected in the buildings sum insured and may be estimated using tools such as the Association of British Insurers rebuild calculator or a professional valuation.
If the sum insured is lower than the actual rebuild cost, any claim settlement may be reduced.
Property ownersâ liability insurance
Home insurance policies typically include property ownersâ liability cover. This helps protect against claims where a third party suffers injury or property damage connected with your home.
Claims of this type may arise from incidents involving visitors, neighbours, delivery drivers, or members of the public.
Cover limits often start from around ÂŁ2 million, although higher limits (up to ÂŁ5 million) may be available depending on the insurer.
Further reading: Home insurance: making sure you are properly covered
Landlordâs insurance
If a property is let to tenants, standard home insurance is not usually designed to reflect the risks associated with rental use. Letting a property is generally treated as a business activity by insurers, and policies intended for owner occupation may not respond if the property is tenanted and the insurer has not been informed.
Specialist landlord insurance is typically arranged to reflect risks specific to rental property ownership, including tenant occupation, liability exposure, and potential interruption to rental income.
Buildings cover for let property
As with home insurance, buildings cover usually forms the core of a landlord insurance policy. The buildings sum insured reflects the estimated cost of rebuilding the property following damage caused by an insured event.
However, landlord policies are normally structured to reflect additional risks associated with tenant occupation, property management responsibilities, and short periods between tenancies when the property may be temporarily unoccupied.
Contents cover for landlords
Where a property is let furnished or part-furnished, landlords may arrange cover for items they provide, such as carpets, curtains, white goods, and furniture.
Tenants are normally responsible for arranging insurance for their own possessions.
Landlord contents insurance differs from household contents insurance because it protects fixtures and furnishings provided for tenant use rather than the landlordâs personal belongings.
Landlord liability insurance
Landlord liability insurance helps protect against claims made by tenants or their visitors who suffer injury or property damage connected with the condition of the let property.
Because landlords have legal responsibilities relating to maintenance and safety standards, liability protection is often an important component of landlord insurance.
Cover limits commonly start from around ÂŁ2 million, although higher levels are frequently available.
Loss of rental income cover
Landlord insurance policies commonly include protection against loss of rental income where the property becomes temporarily uninhabitable following an insured event such as fire or flooding.
This differs from home insurance policies, which may instead provide cover for alternative accommodation where the policyholder cannot live in their home.
Accidental or malicious tenant damage
Some landlord policies may include protection against accidental or malicious damage caused by tenants. This type of risk is not normally included within standard home insurance policies and may be available as standard or optional cover depending on the insurer.
Legal expenses cover and rent guarantee insurance
Optional legal expenses insurance may be available with landlord policies. This can help cover certain legal costs arising from disputes with tenants, including possession proceedings or recovery of rent arrears, subject to policy terms.
Alongside legal expenses cover, rent guarantee insurance may also be arranged. It may provide protection where tenants fail to pay rent, subject to referencing requirements and policy conditions.
Unoccupied property considerations
Periods between tenancies may affect insurance requirements. Landlord insurance policies are typically designed to reflect short-term unoccupied periods, although conditions may still apply regarding inspections, security, heating arrangements, or maintenance.
Employersâ liability insurance
Where landlords employ individuals to support or maintain the property, such as cleaners, gardeners, or maintenance workers, employersâ liability insurance may be required by law in some circumstances.
This is typically not included with a standard landlord insurance policy but can be bought as standalone protection.
Further reading: Landlords: Getting suitable cover
Choosing suitable property insurance cover
Home insurance is generally intended for owner-occupied property. Where a property is let to tenants, specialist landlord insurance is typically more appropriate because it reflects risks such as tenant-related liability claims, rental income interruption, and tenancy-related legal issues.
Arranging insurance that reflects how the property is used may help ensure the protection in place better matches your responsibilities as either a homeowner or a landlord.
Frequently asked questions about home insurance and landlord insurance
Can I use home insurance for a rental property?
Standard home insurance policies are not usually intended for tenanted property. If a property is let without informing the insurer, claims may be affected or declined.
What is the main difference between home insurance and landlord insurance?
Home insurance is generally designed for owner-occupied properties, while landlord insurance reflects risks associated with tenant occupation, rental income, and landlord liability responsibilities.
Does landlord insurance include cover for tenantsâ belongings?
Landlord insurance typically covers items owned by the landlord. Tenants are normally responsible for arranging insurance for their own possessions.
Does landlord insurance cover loss of rent?
Many landlord policies include loss of rental income cover if the property becomes uninhabitable following an insured event, subject to policy terms.
Do landlords need liability insurance?
Landlord liability insurance is not always legally required, but it is commonly arranged because landlords have legal responsibilities for the safety and condition of their property.