What Does Landlord Insurance Cover?

Landlord insurance is a package. Knowing which sections you have — and which you have declined — is what determines whether a claim is paid.

Reviewed by the Landlord Quote editorial team · Last updated 14 September 2026

In short

Buildings cover insures the structure for its full rebuild cost, not market value.
Landlord contents covers only what you provide, not the tenant's belongings.
Property owners' liability covers injury and damage claims from tenants and visitors.
Loss of rent applies after insured damage; rent guarantee covers tenant non-payment.
Accidental and malicious damage are usually optional extensions.

What does landlord insurance cover?

A typical landlord policy covers the buildings against insured perils, landlord contents, property owners' liability, and loss of rent or alternative accommodation while the property is uninhabitable after an insured loss. Legal expenses, rent guarantee, accidental damage and malicious damage are usually optional.

The buildings section responds to fire, storm, flood, escape of water, subsidence, impact, theft and malicious damage, subject to the wording. It should be set at the full cost of rebuilding, including professional fees, debris removal and the cost of meeting current building regulations.

Landlord contents is narrower than most people assume. It covers items you provide — carpets, curtains, white goods, furniture in a furnished let — and not the tenant's own possessions, which they insure themselves.

Property owners' liability is the section most likely to produce a very large claim. It responds to injury to a tenant, visitor or contractor, or damage to their property, arising from the condition of the building.

Things to consider

Check whether accidental damage is included or optional.
Check the loss of rent limit — often a percentage of the buildings sum insured or a fixed number of months.
Confirm how long the property can stand empty before cover is restricted.

What is the difference between loss of rent and rent guarantee?

Loss of rent pays the rent you lose while the property is uninhabitable following insured damage such as a fire or flood. Rent guarantee pays when a tenant who can live in the property simply does not pay.

They are frequently confused, and the difference matters. Loss of rent sits inside most landlord buildings policies; rent guarantee is a separate product, usually sold alongside legal expenses cover and subject to tenant referencing conditions.

Rent guarantee policies typically require referencing before the tenancy starts, a written tenancy agreement, and prompt notification once arrears reach a set level. Miss those conditions and the cover will not respond.

Does landlord insurance cover damage caused by tenants?

Sometimes, and usually only if you have bought the relevant extension. Accidental damage and malicious damage by tenants are typically optional add-ons with their own excesses and conditions, and general wear and tear is never covered.

Insurers distinguish between a one-off accident, deliberate damage, and gradual deterioration. Only the first two are insurable, and the deposit is usually expected to cover minor items before the policy responds.

Where malicious damage cover is in place, conditions commonly include holding a deposit, referencing the tenant, having a written tenancy agreement and reporting the incident to the police.

What optional extras are worth considering?

Landlord legal expenses, rent guarantee, home emergency, accidental damage, malicious damage by tenants, and — for portfolios — a single policy covering all properties on one renewal date.

Legal expenses cover typically funds possession proceedings, disputes with tenants and contract disputes, which can otherwise run to significant cost regardless of outcome.

Home emergency deals with the practical problems: a failed boiler in winter, a burst pipe, a lost key, a blocked drain. It is not a substitute for maintenance but it does keep tenants safe and warm while a repair is organised.

Landlord Quote does not recommend particular extensions — an FCA authorised broker will discuss what suits your circumstances.