Is Landlord Insurance a Legal Requirement?

If you are a commercial or residential landlord, you may be asking, ‘Is landlord insurance a legal requirement?’

Although there is currently no legal requirement to purchase landlord insurance, it is still considered something of a ‘must have’ for anyone who uses the rental property as a source of income.

Many mortgage lenders make it a contractual obligation with clients who have to buy to let mortgages with them that they take out an appropriate level of landlord insurance on the property.

Failing to take out landlord’s insurance could, in this case, have serious implications for your mortgage provider.

Landlord insurance

Even though landlord insurance is not always a legal requirement, it could prove invaluable if anything should happen to your property. You might be able to save time and money finding the best landlord insurance deal for you by using our simple comparison table below:

If you don’t have a mortgage on the property, you will not technically be obligated by law to have any landlord insurance. However, it is extremely unusual for a landlord to operate without insurance cover.

Many landlords will consider insurance an important necessity. Without it, they will be left exposed to many potential hazards and dangers which could cause them a great deal of unnecessary financial expenditure.

If a landlord were to forgo landlord liability insurance, they could be held responsible for paying substantial legal fees.

Many insurance providers are available in the market, and getting a few different quotes can help you find the best deal. When looking for a landlord insurance policy, consider what features are important to you to help you decide which policy would be the best decision for your specific circumstances.

Features and optional extras of a landlord insurance policy you might want to consider are:

Landlord buildings insurance

This policy type will cover you for damage caused to your property’s roof, walls, and permanent fixtures. The damage you are covered against will vary by insurer; some policies cover external structures such as garages, unattached buildings, or even swimming pools. You might want to ensure that a building’s insurance policy covers the cost of clearing the land, surveying and rebuilding the property if an insured event destroyed it.

Contents insurance

If you let any of your properties as fully or partially insured, you might want to consider contents cover to protect your items, such as sofas, carpets, and appliances.

Liability cover

Landlord liability coverage could help cover your legal costs if a tenant or visitor of your property made a personal injury claim against you. It could also pay their compensation award and costs if you were at fault. You may also want to consider employer’s liability cover if you have employees working on your properties, such as cleaners, property managers or gardeners.