Key facts: Landlord policies typically cost more than home insurance on a like property — letting adds risk. The premium drivers: rebuild cost, property type and age, tenant type, claims history, and optional covers (loss of rent, rent guarantee, liability limits). Portfolio policies cut per-property cost meaningfully.
What drives the premium
The base is the property itself: rebuild cost, age, construction, flood and subsidence exposure. On top sits the letting risk: tenant type matters more than landlords expect — insurers price professionals, families, students, benefit recipients and short-term lets differently, and an HMO differently again. Then your record (claims history, years landlording) and your excess complete the picture.
What a sensible policy includes
The core: landlord buildings cover (required by buy-to-let lenders), property owners' liability (a tenant tripping on a loose stair is your claim, not theirs — £2m–£5m is standard), and landlord contents for whatever you furnish. The letting-specific covers earn their premium: loss of rent (rental income while the property is uninhabitable after an insured event) and optionally rent guarantee (tenant default, usually bundled with legal-expenses cover for possession). Our landlord insurance guide details each.
Cutting cost without cutting protection
The safe levers: a higher voluntary excess, annual payment over monthly, portfolio policies across multiple properties (one policy, shared limits, real discounts), and rewarding your own good record by shopping at renewal. The false economies: skipping liability (the open-ended risk), insuring market value instead of rebuild (the average-clause trap), and "forgetting" to mention the tenant type — misdeclared tenancies void claims exactly when needed.
The void-period catch
Empty properties between tenancies trip unoccupancy clauses — cover typically restricts after 30–60 empty days. Longer voids and refurbishment gaps need the insurer informed and sometimes specific unoccupied-property terms. It's the most commonly-breached condition in landlord claims.
Pricing your specific let
A specialist broker prices your property-and-tenant combination across insurers and structures loss-of-rent and liability properly. Compare landlord insurance through Nesto — free, no obligation.
Frequently asked questions
Why is landlord insurance dearer than home insurance?
Letting adds risk — tenant damage, liability exposure, void periods — and adds covers home policies don't carry, like loss of rent.
Does tenant type really change the price?
Significantly — insurers rate professionals, students, families and benefit tenants differently. Declare accurately; misdeclared tenancies void claims.
Is rent guarantee insurance worth it?
For landlords dependent on the rent, often yes — it covers tenant default and usually legal costs of possession. Weigh the premium against your exposure to one bad tenancy.
Am I covered between tenants?
Only within unoccupancy limits — typically 30–60 days. Tell your insurer about longer voids or refurbishments.