Getting the Best Landlord Insurance Deal in the Era of Renters’ Rights

With premiums rising and a host of new products on the market, landlords need to do their homework before renewing or taking out a new insurance policy. Here’s what landlords need to know about insurance, and how it is evolving in the wake of Renters’ Rights. Firstly, a recap on the insurance basics.

•  Landlord insurance is not mandatory, but it makes good business sense.
•  About 85% of landlords* (wisely) take it out. (The other 15% presumably keep their fingers crossed in the hope that the worst never happens.)
•  Lenders commonly require landlord insurance as a condition of a buy-to-let mortgage.
•  Landlords can’t rely on a standard home and contents policy, as these don’t cover rentals. Whether you’re letting out a property or just a room, you need to take out a specialised product.
•  Policies can vary enormously in cost depending on the scope of cover that you choose.
•  Standard policies typically cover the building’s structure in the event of fire, flood or storms, as well as loss of rent in such circumstances. They should also cover liability for injuries or losses to tenants or visitors while in the property.
•  From there, landlords can choose to cover other aspects of a tenancy that involve risk. Common add-ins include legal expenses, rental guarantee, boiler coverage and accidental and malicious damage.

Points to consider

•  Premiums are heading skywards. They rose by more than 20% in 2025. ** Insurers blame this on inflation and regulatory changes.
•  Thanks to the Renters’ Rights Act, the insurance industry has been busy. For example, in the last quarter of 2025, demand for rental insurance increased by41%. **
•  Demand for pet damage protection has also increased due to recent rule changes regarding tenants who wish to keep animals.
•  Insurance Times reports a significant increase in rent guarantee products on the market, amid concerns that evicting a tenant who is in default could now take longer.

How to get the best deal

•  Many insurers no longer reward loyalty; instead, they offer the best deals to new customers. So never automatically renew your policy.
•  Understand your current policy clearly and identify any areas where, in the current climate, you should beef up your coverage.
•  Remember, insurance is tax-deductible. Opting for a bargain basement deal isn’t always the best business decision.
•  Insurers will need details of the property and your tenants (including whether they’re employed, a student or on benefits), so have all the information to hand when getting a quote.
•  Some insurers allow you to cover multiple properties on one policy. This can sometimes represent a cost saving.
•  The devil is often in the detail. For example, while one rent guarantee policy might cover you for six months, another might continue until you reclaim vacant possession. In some circumstances, such a distinction could make quite a big difference depending.

If you’d like help with managing your property portfolio, call us today.

*Source: Alan Boswell Group

**Source: Consumer Intelligence

***Source: Goodlord This article does not represent legal advice.