Buy-to-let Home Insurance
If you own a rental property, you need to have specialist buy-to-let home insurance in place to protect your building and belongings.
Why choose Howden for Buy-to-let Home Insurance?
When it comes to arranging your home insurance, we at Howden, as insurance brokers, pride ourselves on doing the heavy lifting, so you don’t have to. The fantastic relationships we have with our selected panel of specialist and standard home insurers allows us to make comparing multiple policies, on your behalf, simple and easy, which then makes comparing multiple policies, on your behalf, simple and easy. What’s not to like?
We also provide a personalised service, because we know that each policy needs to be as individual as its owner. This is why we get to know you, to find out exactly what you need from your home insurance and guide you through the process, getting to know you and finding out exactly what you want from your home insurance.
Ultimately, whether you need to make a claim, purchase a new home policy, or renew an existing one, we’re here to help.
Benefits of working with us:
- You can trust us – we’re rated Excellent on Trustpilot.
- We’re driven to save you time, money, and hassle.
- Benefit from a tailored service that comparison sites can’t provide.
- Speak with your local branch, within your community.
- We’re right by your side in the event of a claim.
Do I need home insurance for a buy-to-let property?
To protect your home and belongings against any unforeseen damage, you need to have insurance in place. However, standard home insurance typically doesn't cover rental properties. Instead, you need to take our specialist buy-to-let insurance, also known as landlord insurance. This type of insurance is designed to cater to the unique needs of landlords and their rental properties.
Here are some of the ways that home insurance and buy-to-let insurance differ:
- Business use: Renting out property is considered a business activity, which regular home insurance doesn't cover.
- Inadequate coverage: Standard home insurance typically doesn't cover rental activities or tenant-related issues.
- Landlord liabilities: Buy-to-let insurance covers specific landlord liabilities that home insurance doesn't.
- Tenant protection: It can include coverage for tenant-related issues like property damage or rent default.
- Void periods: Buy-to-let policies often cover periods when the property is unoccupied between tenants.
Is landlord insurance mandatory?
While landlord insurance isn’t a legal requirement, most mortgage lenders require it before granting you a buy-to-let mortgage. So if your property has a mortgage, you’ll almost certainly need to have buy-to-let insurance in place.
If you own your property outright, it’s likely that this type of insurance will be optional. Before you decide not to take out landlord insurance, however, make sure that you’re prepared to cover the costs of potentially extensive damage. If a burst pipe flooded your home, or an accident caused a severe fire, would you be able to pay for the repairs?
Buy-to-let insurance provides you with peace of mind that you won’t be out of pocket if an accident were to happen.
What does Buy-to-let Insurance cover?
When it comes to the coverage offered in a let property insurance policy, most policies will include:
- Buildings insurance: This includes protection for your building against disasters like storms, floods, and fires.
- Contents insurance: Contents insurance safeguards your furnishings, which is crucial if you’re renting out a partially or fully furnished property. You may choose to exclude contents insurance from your policy if you’re renting out your property unfurnished.
Contents insurance only covers your belongings as the landlord — not your tenant’s belongings. If their belongings are damaged in an insured event, it will be their responsibility to claim from their own insurance policy for any repairs or replacements.
- Liability insurance: This extends your insurance to protect you against damage or injury suffered by tenants or visitors due to faults in your property.
- Loss of rent: Some policies cover the lost rental income if your property becomes uninhabitable due to an insured event.
- Legal cover: This covers the costs of the legal fees required in negotiating a dispute with a tenant.
- Optional add-ons: Your insurance policy may include — or you may opt to add — extra protection. For example, you might be interested in cover for accidental damage caused by your tenants, malicious damage caused by your tenants, or home emergency cover.
Always make sure that your policy provides you with the coverage you need. Speak to your insurer or an experienced broker like Howden about your specific requirements. We’ll help to draw up a tailor-made policy, just for you.
How much does Landlord Insurance cost per month?
As with all types of insurance, there’s no one-size-fits-all cost for buy-to-let insurance. The premium you pay will be influenced by several factors, including:
- The type of property you own
- Its value
- Its age and condition
- Its location (homes in higher risk areas tend to cost more to insure)
- The level of cover you choose
- How many tenants occupy your home
- Your claims history
- Any optional extras you may choose to add
Keep in mind that the cheapest option isn't always the best. It's more important that you have adequate coverage in the event that anything goes wrong.
How to pay less for buy-to-let insurance
Looking for some great cost-saving tips? To pay less for your landlord insurance, try the following:
- Go with the same provider: Insuring multiple properties under one policy can sometimes lead to discounts. So if you already have insurance in place for your own owner-occupied home, speak to the same insurer about your buy-to-let property. Of course, you’ll only know if this is the best deal if you shop around, so ask for some comparative quotes just to be sure.
- Consider going for a higher excess: Choosing a higher excess can lower your monthly premiums. However, it’s important that you can afford this excess in the event that you have to make a claim. Be sure to run your numbers carefully.
- Payment annually: Many insurers offer the choice to pay premiums annually or monthly, with monthly payments often incurring a small additional fee. If you’re able, consider paying your insurance annually upfront.
Whether you're managing a single property or a multi-property portfolio, our team goes above and beyond to ensure your insurance policy is right for you. To arrange your own buy-to-let insurance, contact our team today.
Related articles
Do you want to read more about home. landlord or other building-related insurances? Take a look at one of our Home Insurance Guides, or read any of the articles below from the Howden Blog!
- What landlord’s insurance do I need? An in-depth guide
- Landlords’ insurance – the importance of proper cover
- Is the landlord or tenant responsible for buildings insurance?
Buy-to-let insurance: FAQs
Do I need landlord insurance for a buy-to-let property?
Yes, if you’re a landlord renting out a buy-to-let property, you need to have specific landlord or buy-to-let insurance in place. Standard home insurance doesn’t apply to rental properties. While buy-to-let insurance isn’t a legal requirement, it is usually a requirement of buy-to-let mortgages.
Do I need landlord insurance if my property is unfurnished?
Yes, it’s a good idea to have landlord insurance in place, even if your property is unfurnished. You won’t need to have contents insurance, but you will still need to have buildings insurance. This will ensure you’re properly protected in the event of a fire, flood, or storm.
If I’m letting my buy-to-let property out as furnished, will my furniture be covered?
Your furniture will only be protected if your policy includes contents insurance. So if you’re renting out a furnished home, be sure to communicate this to your insurer. Your policy will not cover your tenant’s belongings. They will have to have their own contents insurance in place for their possessions.
Does buy-to-let insurance cover damage caused by tenants?
Generally, basic buy-to-let insurance doesn’t automatically cover all types of damage caused by tenants. Damage from standard insured events, like fires and floods, is usually covered, even if your tenant is at fault. And accidental and malicious damage are usually optional add-ons that will cover any accidents or acts of vandalism. Normal wear and tear caused by your tenants typically isn’t covered.
To ensure you're protected, carefully review your policy details and consider adding specific tenant damage coverage if it's not included in your standard policy.
Can you get landlord insurance for 6 months?
While most landlord insurance policies are typically offered on an annual basis, some insurers do offer short-term plans that allow you to cover your rental property for limited periods of time. You might have to hunt around to find the policy that’s right for you.
If you need coverage for only six months, it's best to directly contact insurance providers or speak with a broker who specialises in landlord insurance. They can help you find the most suitable and cost-effective option for your needs.
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