TL;DR: Standard homeowner's insurance typically does not cover rental activity. Landlords need specialist insurance covering the building, their liability, and in many cases, the risk of lost rental income during repairs or tenant default.
Insurance is one of the most important risk management tools available to landlords. A single uninsured event — a fire, a flood, a personal injury claim from a tenant — can result in losses that far exceed years of rental income. Yet many landlords continue to rely on inappropriate policies or underinsure their properties.
This guide explains the main types of landlord insurance available in the UK, France, Sweden, Australia, New Zealand, Canada, and the USA.
MmowW Scrib🐮 is a document preparation service, not a law firm. We do not provide legal advice.
When you let a property to a tenant, your insurer must know. Failing to disclose that a property is let can void your policy — meaning you receive nothing when you make a claim.
A standard homeowner's policy is designed for owner-occupiers, not landlords. Key differences:
Covers the physical structure of the property against damage from:
What to check:
Also called property owner's liability insurance. Covers you against claims from:
Recommended minimum: £1–2 million cover. Many policies offer £5 million as standard.
Pays rental income if:
This is included in most comprehensive landlord policies but is sometimes an optional add-on. Check that the period of cover is adequate — rebuilding after a fire can take 12–24 months.
Separate from loss of rent insurance, this covers you if a tenant:
Typically covers:
Important conditions: Most rent guarantee policies require you to have conducted thorough tenant referencing before the policy is valid.
If you let the property furnished, this covers your furniture and appliances against:
For unfurnished properties, this is generally not necessary (tenants insure their own contents separately).
Covers legal costs for:
Legal expenses cover is frequently bundled with rent guarantee insurance.
Use our free tool: Cost Calculator
Try it free →| Country | Common Products | Mandatory? | Key Providers | Notes |
|---|---|---|---|---|
| 🇬🇧 UK | Buildings, liability, rent guarantee, legal expenses | Buildings insurance required by mortgage lender; others optional | Direct Line for Business, Simply Business, Aviva, Alan Boswell | Comprehensive landlord policies widely available; rent guarantee requires referencing |
| 🇫🇷 France | Propriétaire non-occupant (PNO); assurance loyer impayé (GLI) | PNO strongly recommended; GLI optional but widely used | Generali, AXA, Allianz, MAIF | GLI (loyer impayé) covers unpaid rent; many landlords use it alongside VISALE |
| 🇸🇪 Sweden | Fastighetsförsäkring (property insurance); hyresförsäkring (rental guarantee) | Not mandatory; recommended | Folksam, Trygg-Hansa, If | Property insurance for building; rental guarantee for income protection |
| 🇦🇺 Australia | Landlord insurance (bundled); rent default | Buildings insurance mandatory for mortgaged property | Terri Scheer, AAMI, CGU, Suncorp | Landlord-specific policies widely available; rent default cover significant |
| 🇳🇿 New Zealand | Landlord insurance (bundled) | Not mandatory; strongly recommended | AMI, State, Tower | Landlord insurance bundles building, contents, and liability |
| 🇨🇦 Canada | Rental property insurance; loss of rental income | Buildings insurance often required by lender | TD Insurance, Intact, Aviva Canada | Loss of rental income add-on important given Canadian weather risks |
| 🇺🇸 USA | Dwelling fire policy (DP-1, DP-2, DP-3); landlord insurance | Not federally mandated; mortgage lender may require | State Farm, Allstate, Travelers, Nationwide | DP-3 is most comprehensive; umbrella policy recommended for additional liability |
Sources:
When comparing landlord insurance, focus on:
| Factor | What to Check |
|---|---|
| Rebuild value | Is the sum insured equal to the full rebuild cost (not market value)? |
| Liability limit | Is it at least £1 million (£5 million is better)? |
| Tenant damage | Is malicious damage by tenants covered? |
| Void period cover | Is the property insured during void periods? |
| Rent guarantee conditions | What referencing must have been conducted? |
| Policy exclusions | High-value items, subsidence, escape of water limits |
| Claims process | Online or phone? What is the typical settlement time? |
| Excess | What is the excess per claim? A lower premium with a high excess may not be better value |
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MmowW Scrib🐮 is a document preparation service, not a law firm. We do not provide legal advice. For insurance advice, consult a qualified insurance broker.
Q: Does my mortgage lender require landlord insurance?
A: Most buy-to-let mortgage lenders require buildings insurance as a condition of the mortgage. They typically require the property to be insured for its full rebuild cost. They do not usually require liability or rent guarantee insurance, but these are strongly recommended regardless.
Q: Will my insurance cover me if I carry out unauthorised modifications to the property?
A: Unauthorised modifications may void your policy or reduce the claim payout. Always notify your insurer of significant changes to the property (extensions, structural changes, change of use) before carrying them out.
Q: Can I get insurance if the property has a tenant already in place?
A: Yes — most landlord insurers can insure a tenanted property. You will need to provide details of the tenancy, the tenant's referencing status, and any existing claims history. Rent guarantee insurance typically requires evidence of referencing conducted before the tenancy began.
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