Landlord insurance is a special cover designed for rental properties. For Indian landlords renting out their London BTL apartments, this insurance helps protect both the asset and the rental income.

Delve deep to understand what landlord insurance covers, where standard insurance falls short and how you, as an Indian property landlord in London, can protect your income and investment.

What is landlord insurance?

Landlord insurance is a type of insurance that is designed specifically for rental properties. It is different from standard home insurance. Standard home insurance does not cover a rented property.

This means that the moment a property is let, the risk profile changes. Rental income, tenant-related damage and legal liability all need to be accounted for.

It covers the building, contents (if furnished), rental income and liability. It also accounts for risks associated with a property only when it is let, such as tenant damage or rent default.

Standard building insurance does not cover damage to the property if it is rented and not declared as such.

What does landlord insurance cover?

Landlord insurance goes beyond basic property coverage. It protects your asset as well as the income it generates and the legal risks that come with letting a property. It usually covers the following:

  • Building insurance

    It covers the physical structure of your property, including walls, roof and floors.

  • Loss of rent

    If the property becomes uninhabitable due to insured events such as flood or fire, the landlord's insurance covers the rental income while repairs are being done.

  • Landlord liability

    This insurance protects you if a tenant or visitor is injured while residing in your rental property and you are legally held responsible. It covers legal and compensation costs.

  • Legal costs

    Covers the legal action related to tenancy issues, including disputes, eviction and recovery of unpaid rent.

  • Accidental damage

    Depending on the policy chosen, spills, breakage and misuse during tenancy that can damage flooring, furniture and appliances are covered.

  • Subsidence cover

    This cover protects your property against structural movement caused by ground instability, including sinking foundations, ground heave or landslip.

  • Cables and underground pipes cover

    These are the essential protections within a landlord insurance policy.

What is not covered?

For many Indian landlords with rental properties in London, issues usually arise when expectations of what an insurance policy covers do not match what it actually covers.

In broader terms, landlord insurance is designed to protect against certain defined risks and not ongoing neglect or existing issues. A typical landlord insurance policy will not cover:

  • The damage caused by a lack of maintenance in the property.
  • Mechanical or electric breakdown of appliances.
  • Issues arising from pre-existing defects in the property.
  • Any intentionally caused damage.
  • Basic wear and tear observed over time.
  • The tenant’s personal belongings.
  • If the property is left unoccupied for an extended period, typically over 30 to 45 days.

What property types are covered?

The property types that can be covered by landlord insurance are bungalows, detached, semi-detached and terraced houses, apartments and converted apartments.

Do you need landlord insurance in the UK?

This insurance is not legally required in the UK; however, it is strongly recommended. Many buy-to-let mortgage lenders require landlords to have appropriate insurance in place. For Indian landlords, not having landlord insurance in place leads to many risks, such as:

  • Damage or loss to contents is not recoverable.
  • Rental income stops if the property becomes uninhabitable.
  • No protection against liability or legal claims from tenants or visitors.
  • Unexpected costs can disrupt cash flow and returns.

Want to learn more or get a quote for your property?

For more details or to get an insurance quote, click here

Note: Insurance is provided by HomeLet, not Benham and Reeves. HomeLet is a trading name of Barbon Insurance Group Limited, authorised and regulated by the Financial Conduct Authority.