Landlord Insurance

Landlord Insurance:

What It Covers and How to Manage Costs

Landlord insurance is an essential safeguard for protecting rental property investments. Unlike standard home insurance, landlord policies are tailored for let properties and can provide additional protections such as rental income loss, tenant-related damage, and legal expenses.

At David Cosby our Team of Lettings Agents and Chartered Surveyors, work closely with landlords to help them protect their properties, manage risks, and maintain high standards for their tenancies. Here, we explain what landlord insurance covers, the factors that affect premiums, and practical steps landlords can take to keep costs under control.

What is Landlord Insurance?

Landlord insurance is designed for properties let to tenants, offering protection beyond what is provided by standard home insurance. A typical policy may include:

• Buildings insurance – covers the structure of the property against risks such as fire, flood, or storm damage.
• Landlord contents insurance – protects furniture and appliances provided by the landlord.
• Loss of rental income – provides cover if the property becomes uninhabitable due to an insured event.
• Landlord liability cover – protects you if a tenant or visitor is injured on the property.
• Legal expenses – helps with costs arising from tenancy disputes, such as eviction proceedings.

The right level of cover depends on your property, tenants, and how you manage the letting.

What Affects the Cost of Landlord Insurance?

Premiums vary depending on a range of factors:

1. Rebuild Cost

Insurers base their premiums on how much it would cost to rebuild the property from the ground up – not its market value. Overestimating this figure can lead to unnecessarily high premiums, while underestimating could leave you underinsured. A professional Reinstatement Cost Assessment by a Chartered Surveyor ensures accuracy.

2. Tenant Type

Insurance costs can vary depending on tenant profiles. Properties let to professional tenants typically carry lower premiums than those let to students or local authority tenants, which insurers view as higher risk.

At David Cosby, our dedicated lettings team carries out rigorous tenant referencing and checks to help landlords secure reliable tenants. This proactive approach not only reduces the likelihood of issues arising during a tenancy but can also support landlords in maintaining favourable insurance terms.

3. Location and Risk Factors

Insurers consider local risks, such as flood zones and environmental hazards, when setting premiums.

At David Cosby, our Chartered Surveyors can advise on property-specific and environmental risks, such as flood susceptibility and structural vulnerabilities, as part of our pre-acquisition surveys. Identifying and addressing these issues early can enhance a property’s resilience and may help landlords avoid future problems that could lead to insurance claims.

4. Additional Cover

Optional extras, such as accidental damage, legal expenses, or rent guarantee insurance, enhance protection but will increase premiums.

Our lettings team offers comprehensive property management services, including regular inspections, proactive maintenance, and support with tenant disputes. By keeping the property in excellent condition and managing tenancies professionally, we help landlords reduce the risk of situations that might otherwise lead to claims under these optional covers.

Chartered Surveying and Lettings Services for Landlords

At David Cosby Chartered Surveyors and Estate Agents, we help landlords protect and manage their properties with confidence. From Reinstatement Cost Assessments to full tenant management, our team offers the professional expertise landlords need to protect their properties and maximise their investment.